NEW YORK, Nov. 5, 2025 -- Blue Owl Capital Corporation (NYSE: OBDC) ("OBDC" or the "Company") today announced financial results for its third quarter ended September 30, 2025.
THIRD QUARTER 2025 HIGHLIGHTS
- Third quarter GAAP net investment income ("NII") per share of $0.37
- Third quarter adjusted NII per share(1) of $0.36, as compared with $0.40 as of June 30, 2025
- Dividends declared for the fourth quarter were $0.37 per share, representing an annualized dividend yield of 9.9%(2)
- Net asset value ("NAV") per share of $14.89, as compared with $15.03 as of June 30, 2025, driven primarily by unrealized depreciation on a small number of names
- New investment commitments for the third quarter were $1.3 billion and sales and repayments were $797 million, as compared with $1.1 billion of new investment commitments and $1.9 billion of sales and repayments for the three months ended June 30, 2025
- Investments on non-accrual represented 1.3% of the portfolio at fair value, as compared with 0.7% as of June 30, 2025
- Announced today that OBDC entered into a definitive merger agreement with Blue Owl Capital Corporation II ("OBDC II")
"OBDC delivered another quarter of strong performance," commented Craig W. Packer, Chief Executive Officer. "Our portfolio continues to demonstrate solid credit quality and underlying fundamentals, which have been hallmarks of our platform since inception. We are also excited to announce the merger between OBDC and OBDC II, a strategic transaction that we expect to enhance long-term value for both sets of shareholders as a combined company."
OBDC to Merge with OBDC II
OBDC and OBDC II today announced that they have entered into a definitive merger agreement, with OBDC as the surviving company, subject to certain shareholder approvals and other customary closing conditions. Following the recommendation of each of their special committees, the boards of directors of both OBDC and OBDC II have unanimously approved the transaction. A separate press release and investor presentation can be found on the Company's website, www.blueowlcapitalcorporation.com.
Dividend Declaration
The Board declared a fourth quarter 2025 regular dividend of $0.37 per share for stockholders of record as of December 31, 2025, payable on or before January 15, 2026.
New Repurchase Program
On November 4, 2025, OBDC's board of directors approved a new repurchase program under which OBDC may repurchase up to $200 million of OBDC's common stock (the "New Repurchase Program"). Under the New Repurchase Program, purchases may be made at management's discretion from time to time in open-market transactions, in accordance with all applicable securities laws and regulations. The New Repurchase Program is expected to be in effect for 18-months or until the aggregate repurchase amount that has been approved by OBDC's board has been expended. The New Repurchase Program does not require OBDC to repurchase any specific number of shares. OBDC previously entered into a $150 million repurchase program, approved by the Board on May 6, 2024 that terminates on November 7, 2025.
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(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 between the Company and Blue Owl Capital Corp. III ("OBDE") (such merger, the "OBDE Merger"), which closed on January 13, 2025. 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. |
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(2) Dividend yield based on OBDC's annualized Q3 2025 regular dividend of $0.37 per share payable to shareholders of record as of September 30, 2025, and Q3 2025 NAV per share of $14.89. |
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SELECT FINANCIAL HIGHLIGHTS |
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As Of And For the Three Months Ended |
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($ in thousands, except per share amounts) |
September 30, |
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June 30,
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September 30, |
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GAAP results: |
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Net investment income per share |
$ 0.37 |
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$ 0.42 |
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$ 0.47 |
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Net realized and unrealized gains (losses) per share |
$ (0.12) |
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$ (0.15) |
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$ (0.13) |
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Net increase (decrease) in net assets resulting from operations per share |
$ 0.25 |
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$ 0.27 |
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$ 0.35 |
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Non-GAAP financial measures(1): |
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Adjusted net investment income per share |
$ 0.36 |
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$ 0.40 |
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$ 0.47 |
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Adjusted net realized and unrealized gains (losses) per share |
$ (0.11) |
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$ (0.13) |
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$ (0.13) |
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Adjusted net increase (decrease) in net assets resulting from operations per share |
$ 0.25 |
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$ 0.27 |
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$ 0.35 |
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Regular dividend declared per share |
$ 0.37 |
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$ 0.37 |
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$ 0.37 |
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Supplemental dividend declared per share |
$ — |
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$ 0.02 |
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$ 0.05 |
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Total investments at fair value |
$ 17,136,548 |
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$ 16,868,782 |
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$ 13,447,536 |
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Total debt outstanding (net of unamortized debt issuance costs) |
$ 9,528,525 |
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$ 9,225,817 |
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$ 7,741,075 |
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Net assets |
$ 7,611,271 |
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$ 7,682,397 |
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$ 5,961,849 |
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Net asset value per share |
$ 14.89 |
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$ 15.03 |
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$ 15.28 |
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Net debt-to-equity |
1.22x |
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1.17x |
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1.23x |
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(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 OBDE 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 September 30, 2025, the Company had investments in 238 portfolio companies across 30 industries, with an aggregate portfolio size of $17.1 billion at fair value and an average investment size of $72.0 million at fair value.
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September 30, 2025 |
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June 30, 2025 |
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($ in thousands) |
Fair Value |
% of Total |
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Fair Value |
% of Total |
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Portfolio composition: |
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First-lien senior secured debt investments |
$ 12,755,706 |
74.4 % |
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$ 12,641,261 |
75.0 % |
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Second-lien senior secured debt investments |
871,481 |
5.1 % |
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913,260 |
5.4 % |
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Unsecured debt investments |
391,717 |
2.3 % |
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374,693 |
2.2 % |
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Specialty finance debt investments |
155,201 |
0.9 % |
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132,173 |
0.8 % |
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Preferred equity investments |
565,961 |
3.3 % |
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553,786 |
3.3 % |
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Common equity investments |
694,041 |
4.1 % |
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661,095 |
3.9 % |
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Specialty finance equity |
1,302,573 |
7.6 % |
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1,202,573 |
7.1 % |
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Joint ventures |
399,868 |
2.3 % |
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389,941 |
2.3 % |
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Total investments |
$ 17,136,548 |
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$ 16,868,782 |
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September 30, 2025 |
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June 30, 2025 |
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Number of portfolio companies |
238 |
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233 |
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Percentage of debt investments at floating rates |
97.4 % |
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97.6 % |
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Percentage of senior secured debt investments |
80.4 % |
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81.2 % |
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Weighted average spread over base rate of all floating rate debt investments |
5.7 % |
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5.8 % |
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Weighted average total yield of accruing debt and income-producing securities at fair value |
10.3 % |
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10.6 % |
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Weighted average total yield of accruing debt and income-producing securities at cost |
10.4 % |
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10.7 % |
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Percentage of investments on non-accrual of the portfolio at fair value |
1.3 % |
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0.7 % |
PORTFOLIO AND INVESTMENT ACTIVITY
For the three months ended September 30, 2025, new investment commitments totaled $1.3 billion across 13 new portfolio companies and 23 existing portfolio companies. For the three months ended June 30, 2025, new investment commitments were $1.1 billion across 6 new portfolio companies and 19 existing portfolio companies.
For the three months ended September 30, 2025, the principal amount funded totaled $963 million and aggregate principal amount of sales and repayments totaled $797 million. For the three months ended June 30, 2025, the principal amount of new investments funded was $906 million and aggregate principal amount of sales and repayments was $1.9 billion.
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For the Three Months Ended September 30, |
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($ in thousands) |
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2025 |
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2024 |
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New investment commitments |
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Gross originations |
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$ 1,347,128 |
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$ 1,151,667 |
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Less: Sell downs |
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(9,127) |
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— |
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Total new investment commitments |
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$ 1,338,001 |
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$ 1,151,667 |
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Principal amount of new investments funded: |
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First-lien senior secured debt investments |
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$ 786,960 |
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$ 1,031,483 |
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Second-lien senior secured debt investments |
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— |
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— |
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Unsecured debt investments |
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4,694 |
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— |
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Specialty finance debt investments |
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20,406 |
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13,468 |
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Preferred equity investments |
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6,961 |
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1,097 |
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Common equity investments |
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17,796 |
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— |
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Specialty finance equity investments |
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115,151 |
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13,318 |
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Joint venture investments |
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11,473 |
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21,437 |
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Total principal amount of new investments funded |
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$ 963,441 |
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$ 1,080,803 |
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Drawdowns (repayments) on revolvers and delayed draw term loans, net |
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$ 106,648 |
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Principal amount of investments sold or repaid: |
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First-lien senior secured debt investments(1) |
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$ (711,677) |
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$ (1,027,432) |
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Second-lien senior secured debt investments |
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(8,000) |
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(65,812) |
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Unsecured debt investments |
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— |
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— |
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Specialty finance debt investments |
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— |
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— |
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Preferred equity investments |
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(2,448) |
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(20,295) |
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Common equity investments |
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(4,694) |
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(15) |
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Specialty finance equity investments |
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(70,303) |
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(1,065) |
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Joint venture investments |
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— |
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— |
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Total principal amount of investments sold or repaid |
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$ (797,122) |
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$ (1,114,619) |
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Number of new investment commitments in new portfolio companies(2) |
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13 |
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23 |
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Average new investment commitment amount in new portfolio companies |
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$ 62,419 |
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$ 42,251 |
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Weighted average term for new investment commitments (in years) |
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5.6 |
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4.4 |
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Percentage of new debt investment commitments at floating rates |
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97.4 % |
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98.8 % |
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Percentage of new debt investment commitments at fixed rates |
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2.6 % |
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1.2 % |
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Weighted average interest rate of new investment commitments(3) |
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9.0 % |
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9.7 % |
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Weighted average spread over applicable base rate of new debt investment commitments at floating rates |
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5.0 % |
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5.1 % |
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(1) Includes scheduled paydowns. |
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(2) Number of new investment commitments represents commitments to a particular portfolio company. |
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(3) For the three months ended September 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 3.98% as of September 30, 2025. For the three months ended September 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 4.59% as of September 30, 2024. |
RESULTS OF OPERATIONS FOR THE THIRD QUARTER ENDED SEPTEMBER 30, 2025
Investment Income
Investment income decreased to $453.1 million for the three months ended September 30, 2025 from $485.8 million for the three months ended June 30, 2025, primarily due to a decrease in prepayment related income and interest income from debt investments. Income associated with unscheduled paydowns decreased to $11.1 million for the three months ended September 30, 2025 from $32.1 million for the same period in prior quarter due to a lower level of unscheduled 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 expenses decreased to $260.0 million for the three months ended September 30, 2025 from $266.8 million for the three months ended June 30, 2025, primarily due to a decrease in management fees and incentive fees. 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 September 30, 2025, the Company had $321.3 million in cash and restricted cash, $9.6 billion in total principal value of debt outstanding, including $2.9 billion of undrawn capacity(1) on the Company's credit facilities and $5.0 billion of unsecured notes. The funding mix was composed of 48% secured and 52% unsecured borrowings as of September 30, 2025 on an outstanding basis. The Company was in compliance with all financial covenants under its credit facilities as of September 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 November 6, 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
- Access Code: 13755746
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(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 September 30, 2025, OBDC had investments in 238 portfolio companies with an aggregate fair value of $17.1 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.
Some of the statements in this press release constitute forward-looking statements because they relate to future events, future performance or financial condition of OBDC or OBDC II or the two-step merger (collectively, the "Mergers") of OBDC II with and into OBDC. The forward-looking statements may include statements as to: future operating results of OBDC and OBDC II and distribution projections; business prospects of OBDC and OBDC II and the prospects of their portfolio companies; and the impact of the investments that OBDC and OBDC II expect to make. In addition, words such as "anticipate," "believe," "expect," "seek," "plan," "should," "estimate," "project" and "intend" indicate forward-looking statements, although not all forward-looking statements include these words. The forward-looking statements contained in this press release involve risks and uncertainties. Certain factors could cause actual results and conditions to differ materially from those projected, including the uncertainties associated with (i) the ability of the parties to consummate the Mergers on the expected timeline, or at all; (ii) the expected synergies and savings associated with the Mergers; (iii) the ability to realize the anticipated benefits of the Mergers, including the expected elimination of certain expenses and costs due to the Mergers; (iv) the percentage of OBDC II shareholders voting in favor of the proposals submitted for their approval; (v) the possibility that competing offers or acquisition proposals will be made to OBDC II; (vi) the possibility that any or all of the various conditions to the consummation of the Mergers may not be satisfied or waived; (vii) risks related to diverting management's attention from ongoing business operations; (viii) the risk that shareholder litigation in connection with the Mergers may result in significant costs of defense and liability; (ix) changes in the economy, financial markets or political environment; (x) the impact of geo-political conditions, including revolution, insurgency, terrorism or war, including those arising out of the ongoing war between Russia and Ukraine, as well as political and social unrest in the Middle East and North Africa regions, uncertainty with respect to immigration, and general uncertainty surrounding the financial and political stability of the United States, the United Kingdom, the European Union and China, on financial market volatility, global economic markets, and various markets for commodities globally such as oil and natural gas; (xi) future changes in laws or regulations (including the interpretation of these laws and regulations by regulatory authorities); (xii) conditions to OBDC's and OBDC II's operating areas, particularly with respect to maintaining their qualification as business development companies or regulated investment companies; (xiii) the impact of elevated inflation rates, fluctuating interest rates, ongoing supply chain and labor market disruptions, including those as a result of strikes, work stoppages or accidents, instability in the U.S. and international banking systems, changes in law or regulation, including the impact of tariff enactment and tax reductions, trade disputes with other countries, and the risk of recession or a prolonged shutdown of government services could impact business prospects of OBDC and OBDC II and their portfolio companies or following the closing of the Mergers, the combined company; (xiv) the ability of Blue Owl Credit Advisors LLC to locate suitable investments for the combined company and to monitor and administer its investments; (xv) the ability of Blue Owl Credit Advisors LLC to attract and retain highly talented professionals; and (xvi) other considerations that may be disclosed from time to time in OBDC's and OBDC II's publicly disseminated documents and filings with the Securities and Exchange Commission ("SEC"). OBDC and OBDC II have based the forward-looking statements included in this press release on information available to them on the date hereof, and they assume no obligation to update any such forward-looking statements. Although OBDC and OBDC II undertake no obligation to revise or update any forward-looking statements, whether as a result of new information, future events or otherwise, you are advised to consult any additional disclosures that they may make directly to you or through reports that OBDC and OBDC II in the future may file with the SEC, including the Proxy Statement and the Registration Statement (each as defined below), annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K.
Additional Information and Where to Find It
In connection with the Mergers, OBDC II plans to file with the SEC and mail to its shareholders a proxy statement/prospectus (the "Proxy Statement") and OBDC plans to file with the SEC a registration statement on Form N-14 (the "Registration Statement") that will include the Proxy Statement and a prospectus of OBDC. The Proxy Statement and Registration Statement will each contain important information about OBDC, OBDC II, the Mergers and related matters. This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval. No offer of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended. SHAREHOLDERS OF OBDC AND OBDC II ARE URGED TO READ THE PROXY STATEMENT AND THE REGISTRATION STATEMENT AND OTHER DOCUMENTS THAT ARE FILED OR WILL BE FILED WITH THE SEC AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THESE DOCUMENTS CAREFULLY AND IN THEIR ENTIRETY WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT OBDC, OBDC II, THE MERGERS AND RELATED MATTERS. Investors and security holders will be able to obtain the documentation filed with the SEC free of charge at the SEC's website, http://www.sec.gov and for documents filed by OBDC, from OBDC's website at https://www.blueowlcapitalcorporation.com and for documents filed by OBDC II, from OBDC II's website at https://blueowlproducts.com. The information contained on, or that may be accessed through, the websites referenced in this press release is not incorporated by reference into, and is not a part of, this press release.
Participation in the Solicitation
OBDC II, its directors, certain of its executive officers and certain employees and officers of Blue Owl Credit Advisors LLC and its affiliates may be deemed to be participants in the solicitation of proxies in connection with the Merger. Information about directors and executive officers of OBDC II is set forth in its proxy statement for its 2025 Annual Meeting of Shareholders, which was filed with the SEC on April 3, 2025. Information regarding the persons who may, under the rules of the SEC, be considered participants in the solicitation of the OBDC II shareholders in connection with the Mergers will be contained in the Proxy Statement when such document becomes available. These documents may be obtained free of charge from the sources indicated above.
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