Blue Owl Capital Corporation (OBDC) Q2 2024 earnings summary

Executive summary

• Announced a milestone merger agreement with Blue Owl Capital Corporation III (OBDE), aiming to create the second-largest publicly traded BDC by total assets and deliver long-term strategic value to shareholders, subject to approvals.

• Net investment income per share was $0.48 for Q2 2024, exceeding the regular dividend by 30%, with annualized ROE of 12.6%.

• Net asset value (NAV) per share was $15.36 at quarter-end, up $0.10 year-over-year but down sequentially.

• Total Q2 dividends were $0.43 per share, including a $0.06 supplemental dividend, representing an 11.2% annualized yield.

• Logan Nicholson appointed as President, with Craig Packer remaining CEO.

Financial highlights

• Q2 2024 net investment income was $189.1 million on $396.7 million of total investment income.

• Portfolio at fair value was $13.3 billion, with 212 portfolio companies.

• Total assets at quarter-end were $13.87 billion, with total net assets of $5.99 billion.

• Net income per share was $0.31, down from $0.47 in Q1 2024.

• Weighted average yield on debt and income-producing securities was 11.9%.

Outlook and guidance

• Board declared a Q3 2024 regular dividend of $0.37 per share and a Q2 2024 supplemental dividend of $0.06 per share.

• The merger with OBDE is expected to close in early 2025, subject to shareholder and regulatory approvals, and is anticipated to be accretive to NII over time.

• Management expects continued strong portfolio performance and attractive returns, with a focus on first lien originations and diversification.