NEW YORK, Aug. 6, 2025 -- Blue Owl Capital Corporation (NYSE: OBDC) ("OBDC" or the "Company") today announced financial results for its second quarter ended June 30, 2025.
SECOND QUARTER 2025 HIGHLIGHTS
- Second quarter GAAP net investment income ("NII") per share of $0.42
- Second quarter adjusted NII per share(1) increased to $0.40, as compared with $0.39 as of March 31, 2025
- Based on OBDC's supplemental dividend framework, the Board of Directors (the "Board") declared a second quarter supplemental dividend of $0.02 per share
- Dividends declared in the second quarter totaled $0.39 per share, representing an annualized dividend yield of 10.4%(2)
- Net asset value ("NAV") per share of $15.03, as compared with $15.14 as of March 31, 2025, driven primarily by write-downs on a small number of names, partially offset by earnings in excess of dividends paid in the quarter
- New investment commitments for the second quarter totaled $1.1 billion and $1.9 billion of sales and repayments, as compared with $1.2 billion of new investment commitments(3) and $1.1 billion of sales and repayments for the three months ended March 31, 2025
- Investments on non-accrual represented 0.7% of the portfolio at fair value, as compared with 0.8% as of March 31, 2025
"OBDC delivered another quarter of solid earnings and generated a 10.6% annualized return on adjusted net investment income," said Craig W. Packer, Chief Executive Officer. "The fundamental performance of the portfolio remains strong, driving our earnings power and positioning OBDC to generate attractive risk-adjusted returns across any economic environment."
Dividend Declarations
The Board declared a third quarter 2025 regular dividend of $0.37 per share for stockholders of record as of September 30, 2025, payable on or before October 15, 2025.
The Board also declared a second quarter 2025 supplemental dividend of $0.02 per share, related to the Company's second quarter 2025 earnings, for stockholders of record as of August 29, 2025, payable on or before September 15, 2025.
(1) | See Non-GAAP Financial Measures for a description of the non-GAAP measures and the reconciliations from the most comparable GAAP financial measures to the Company's non-GAAP measures, including on a per share basis. The Company's management utilizes these non-GAAP financial measures to internally analyze and assess financial results and performance. These measures are also considered useful by management as an additional resource for investors to evaluate the Company's ongoing results and trends, as well as its performance, excluding non-cash income or gains related to the Merger. The presentation of non-GAAP measures is not intended to be a substitute for financial results prepared in accordance with GAAP and should not be considered in isolation. | |||||||
(2) | Dividend yield based on OBDC's annualized Q2 2025 regular dividend of $0.37 per share payable to shareholders of record as of June 30, 2025, annualized Q2 2025 supplemental dividend of $0.02 per share payable to shareholders of record as of August 29, 2025, and Q2 2025 NAV per share of $15.03 less Q2 2025 supplemental dividend per share of $0.02. | |||||||
(3) | On January 13, 2025, in connection with the merger with Blue Owl Capital Corporation III ("OBDE" or the "Merger"), the Company acquired investments of $4.15 billion from OBDE and assumed unfunded loan commitments totaling $463.4 million which are excluded from the figure above. The investments acquired consisted of 189 portfolio companies, 9 of which were not previously held by OBDC. | |||||||
SELECT FINANCIAL HIGHLIGHTS | |||||
As Of And For the Three Months Ended | |||||
($ in thousands, except per share amounts) | June 30, 2025 | March 31, 2025 | June 30, 2024 | ||
GAAP results: | |||||
Net investment income per share | $ 0.42 | $ 0.41 | $ 0.48 | ||
Net realized and unrealized gains (losses) per share | $ (0.15) | $ 0.08 | $ (0.17) | ||
Net increase (decrease) in net assets resulting from operations per share | $ 0.27 | $ 0.49 | $ 0.31 | ||
Non-GAAP financial measures(1): | |||||
Adjusted net investment income per share | $ 0.40 | $ 0.39 | $ 0.48 | ||
Adjusted net realized and unrealized gains (losses) per share | $ (0.13) | $ (0.07) | $ (0.17) | ||
Adjusted net increase (decrease) in net assets resulting from operations per share | $ 0.27 | $ 0.32 | $ 0.31 | ||
Regular dividend declared per share | $ 0.37 | $ 0.37 | $ 0.37 | ||
Supplemental dividend declared per share | $ 0.02 | $ 0.01 | $ 0.06 | ||
Total investments at fair value | $ 16,868,782 | $ 17,692,006 | $ 13,341,982 | ||
Total debt outstanding (net of unamortized debt issuance costs) | $ 9,225,817 | $ 10,160,729 | $ 7,414,920 | ||
Net assets | $ 7,682,397 | $ 7,739,089 | $ 5,994,284 | ||
Net asset value per share | $ 15.03 | $ 15.14 | $ 15.36 | ||
Net debt-to-equity | 1.17x | 1.26x | 1.20x | ||
(1) | See Non-GAAP Financial Measures for a description of the non-GAAP measures and the reconciliations from the most comparable GAAP financial measures to the Company's non-GAAP measures, including on a per share basis. The Company's management utilizes these non-GAAP financial measures to internally analyze and assess financial results and performance. These measures are also considered useful by management as an additional resource for investors to evaluate the Company's ongoing results and trends, as well as its performance, excluding non-cash income or gains related to the Merger. The presentation of non-GAAP measures is not intended to be a substitute for financial results prepared in accordance with GAAP and should not be considered in isolation. | |||||||
PORTFOLIO COMPOSITION
As of June 30, 2025, the Company had investments in 233 portfolio companies across 30 industries, with an aggregate portfolio size of $16.9 billion at fair value and an average investment size of $72.4 million at fair value.
June 30, 2025 | March 31, 2025 | ||||
($ in thousands) | Fair Value | % of Total | Fair Value | % of Total | |
Portfolio composition: | |||||
First-lien senior secured debt investments | $ 12,773,434 | 75.8 % | $ 13,703,893 | 77.5 % | |
Second-lien senior secured debt investments | 913,260 | 5.4 % | 891,935 | 5.0 % | |
Unsecured debt investments | 374,693 | 2.2 % | 377,711 | 2.1 % | |
Preferred equity investments | 559,992 | 3.3 % | 550,927 | 3.1 % | |
Common equity investments | 1,857,462 | 11.0 % | 1,797,988 | 10.2 % | |
Joint ventures | 389,941 | 2.3 % | 369,552 | 2.1 % | |
Total investments | $ 16,868,782 | $ 17,692,006 | |||
June 30, 2025 | March 31, 2025 | ||
Number of portfolio companies | 233 | 236 | |
Percentage of debt investments at floating rates | 97.6 % | 96.5 % | |
Percentage of senior secured debt investments | 81.2 % | 82.5 % | |
Weighted average spread over base rate of all floating rate debt investments | 5.8 % | 5.9 % | |
Weighted average total yield of accruing debt and income-producing securities at fair value | 10.6 % | 10.7 % | |
Weighted average total yield of accruing debt and income-producing securities at cost | 10.7 % | 10.8 % | |
Percentage of investments on non-accrual of the portfolio at fair value | 0.7 % | 0.8 % |
PORTFOLIO AND INVESTMENT ACTIVITY
For the three months ended June 30, 2025, new investment commitments totaled $1.1 billion across 6 new portfolio companies and 19 existing portfolio companies. For the three months ended March 31, 2025, new investment commitments were $1.2 billion(1) across 12 new portfolio companies and 22 existing portfolio companies.
For the three months ended June 30, 2025, the principal amount of new investments funded totaled $906 million and aggregate principal amount of sales and repayments totaled $1.9 billion. For the three months ended March 31, 2025, the principal amount of new investments funded was $913 million(1) and aggregate principal amount of sales and repayments was $1.1 billion.
(1) | On January 13, 2025, in connection with the Merger, the Company acquired investments of $4.15 billion from OBDE and assumed unfunded loan commitments totaling $463.4 million which are excluded from the figure above. The investments acquired consisted of 189 portfolio companies, 9 of which were not previously held by OBDC. | |||||||
For the Three Months Ended June 30, | ||||
($ in thousands) | 2025 | 2024 | ||
New investment commitments | ||||
Gross originations | $ 1,116,767 | $ 3,296,799 | ||
Less: Sell downs | — | — | ||
Total new investment commitments | $ 1,116,767 | $ 3,296,799 | ||
Principal amount of new investments funded: | ||||
First-lien senior secured debt investments | $ 597,793 | $ 2,098,353 | ||
Second-lien senior secured debt investments | 205,340 | 10,000 | ||
Unsecured debt investments | — | 132,135 | ||
Preferred equity investments | 2,914 | 884 | ||
Common equity investments | 88,515 | 26,433 | ||
Joint ventures | 11,473 | 37,625 | ||
Total principal amount of new investments funded | $ 906,035 | $ 2,305,430 | ||
Drawdowns (repayments) on revolvers and delayed draw term loans, net | $ 142,162 | |||
Principal amount of investments sold or repaid: | ||||
First-lien senior secured debt investments(1) | $ (1,612,475) | $ (872,157) | ||
Second-lien senior secured debt investments | (178,056) | (125,596) | ||
Unsecured debt investments | (24,233) | (118,699) | ||
Preferred equity investments | (4,933) | (30,321) | ||
Common equity investments | (87,190) | — | ||
Joint ventures | — | — | ||
Total principal amount of investments sold or repaid | $ (1,906,887) | $ (1,146,773) | ||
Number of new investment commitments in new portfolio companies(2) | 6 | 25 | ||
Average new investment commitment amount | $ 92,279 | $ 98,945 | ||
Weighted average term for new debt investment commitments (in years) | 5.9 | 5.7 | ||
Percentage of new debt investment commitments at floating rates | 99.0 % | 96.8 % | ||
Percentage of new debt investment commitments at fixed rates | 1.0 % | 3.2 % | ||
Weighted average interest rate of new debt investment commitments(3) | 9.7 % | 10.9 % | ||
Weighted average spread over applicable base rate of new floating rate debt investment commitments | 5.4 % | 5.4 % | ||
(1) | Includes scheduled paydowns. | |||||||
(2) | Number of new investment commitments represents commitments to a particular portfolio company. | |||||||
(3) | For the three months ended June 30, 2025, assumes each floating rate commitment is subject to the greater of the interest rate floor (if applicable) or 3-month SOFR, which was 4.29% as of June 30, 2025. For the three months ended June 30, 2024, assumes each floating rate commitment is subject to the greater of the interest rate floor (if applicable) or 3-month SOFR, which was 5.32% as of June 30, 2024. | |||||||
RESULTS OF OPERATIONS FOR THE SECOND QUARTER ENDED JUNE 30, 2025
Investment Income
Investment income increased to $485.8 million for the three months ended June 30, 2025 from $464.6 million for the three months ended March 31, 2025, primarily due to an increase in prepayment related income and accelerated amortization of upfront fees from unscheduled paydowns, which are non-recurring in nature. Income associated with unscheduled paydowns increased to $32.1 million for the three months ended June 30, 2025 from $8.2 million for the same period in prior quarter due to an elevated level of repayment related activity. The Company expects that investment income will vary based on a variety of factors including the pace of originations and repayments.
Expenses
Total operating expenses increased to $266.8 million for the three months ended June 30, 2025 from $259.6 million for the three months ended March 31, 2025, primarily due to an increase in interest expense, management fees and incentive fees resulting from the Merger. As a percentage of total assets, professional fees, directors' fees and other general and administrative expenses remained relatively consistent period-over-period.
Liquidity and Capital Resources
As of June 30, 2025, the Company had $360.2 million in cash and restricted cash, $9.3 billion in total principal value of debt outstanding, including $3.7 billion of undrawn capacity(1) on the Company's credit facilities and $5.5 billion of unsecured notes. The funding mix was composed of 41% secured and 59% unsecured borrowings as of June 30, 2025 on an outstanding basis. The Company was in compliance with all financial covenants under its credit facilities as of June 30, 2025. The Company has analyzed cash and cash equivalents, availability under its credit facilities, the ability to rotate out of certain assets and amounts of unfunded commitments that could be drawn and believes its liquidity and capital resources are sufficient to take advantage of market opportunities.
CONFERENCE CALL AND WEBCAST INFORMATION
Conference Call Information:
The conference call will be broadcast live on August 7, 2025 at 10:00 a.m. Eastern Time on the News & Events section of OBDC's website at www.blueowlcapitalcorporation.com. Please visit the website to test your connection before the webcast.
Participants are also invited to access the conference call by dialing one of the following numbers:
- Domestic: (877) 737-7048
- International: +1 (201) 689-8523
All callers will need to reference "Blue Owl Capital Corporation" once connected with the operator. All callers are asked to dial in 10-15 minutes prior to the call so that name and company information can be collected.
Replay Information:
An archived replay will be available for 14 days via a webcast link located on the News & Events section of OBDC's website, and via the dial-in numbers listed below:
- Domestic: (877) 660-6853
- International: +1 (201) 612-7415
- Conference ID: 13754256
(1) | Reflects availability based on limitations related to each credit facility's borrowing base. | |||||||
ABOUT BLUE OWL CAPITAL CORPORATION
Blue Owl Capital Corporation (NYSE: OBDC) is a specialty finance company focused on lending to U.S. middle-market companies. As of June 30, 2025, OBDC had investments in 233 portfolio companies with an aggregate fair value of $16.9 billion. OBDC has elected to be regulated as a business development company under the Investment Company Act of 1940, as amended. OBDC is externally managed by Blue Owl Credit Advisors LLC, an SEC-registered investment adviser that is an indirect affiliate of Blue Owl Capital Inc. ("Blue Owl") (NYSE: OWL) and part of Blue Owl's Credit platform.
Certain information contained herein may constitute "forward-looking statements" that involve substantial risks and uncertainties. Such statements involve known and unknown risks, uncertainties and other factors and undue reliance should not be placed thereon. These forward-looking statements are not historical facts, but rather are based on current expectations, estimates and projections about OBDC, its current and prospective portfolio investments, its industry, its beliefs and opinions, and its assumptions. Words such as "anticipates," "expects," "intends," "plans," "will," "may," "continue," "believes," "seeks," "estimates," "would," "could," "should," "targets," "projects," "outlook," "potential," "predicts" and variations of these words and similar expressions are intended to identify forward-looking statements. These statements are not guarantees of future performance and are subject to risks, uncertainties and other factors, some of which are beyond OBDC's control and difficult to predict and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements including, without limitation, the risks, uncertainties and other factors identified in OBDC's filings with the SEC. Investors should not place undue reliance on these forward-looking statements, which apply only as of the date on which OBDC makes them. OBDC does not undertake any obligation to update or revise any forward-looking statements or any other information contained herein, except as required by applicable law.
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