Owl Rock Capital Corp. Reports Third Quarter Net Investment Income Per Share of $0.33 and NAV Per Share of $14.95

NEW YORK, Nov. 3, 2021 /PRNewswire/ -- Owl Rock Capital Corporation (NYSE: ORCC, or the "Company") today reported net investment income of $130.5 million, or $0.33 per share, and net income of $142.9 million, or $0.36 per share, for the third quarter ended September 30, 2021. Reported net asset value per share was $14.95 at September 30, 2021 as compared to $14.90 at June 30, 2021.

"We are very pleased to report strong results this quarter. We experienced a record level of both originations and repayments and were able to seamlessly redeploy capital from those repaid investments into equally attractive new investments," commented Craig W. Packer, Chief Executive Officer of Owl Rock Capital Corporation. "We are very proud of where our portfolio stands today and to achieve the important milestone of earning our dividend from net investment income this quarter with continued strong credit performance."

The Company's Board of Directors has declared a fourth quarter 2021 dividend of $0.31 per share for stockholders of record as of December 31, 2021, payable on or before January 31, 2022.

PORTFOLIO AND INVESTING ACTIVITY

For the three months ended September 30, 2021, new investment commitments totaled $2,794.0 million across 21 new portfolio companies and 13 existing portfolio companies. This compares to $1,578.1 million for the three months ended June 30, 2021 across 16 new portfolio companies and 12 existing portfolio companies.

For the three months ended September 30, 2021, the principal amount of new investments funded was $2,292.6 million. For this period, the Company had $2,094.4 million aggregate principal amount in exits and repayments.

For the three months ended June 30, 2021, the principal amount of new investments funded was $1,405.6 million. For this period, the Company had $742.7 million aggregate principal amount in exits and repayments.

As of September 30, 2021 and June 30, 2021, the Company had investments in 130 and 129 portfolio companies with an aggregate fair value of $12.1 billion and $11.9 billion, respectively. As of September 30, 2021, the average investment size in each portfolio company was $93.2 million based on fair value.

As of September 30, 2021, based on fair value, our portfolio consisted of 77.0% first lien senior secured debt investments, 14.5% second lien senior secured debt investments, 1.6% unsecured notes, 1.5% preferred equity investments, 3.5% common equity investments and 1.9% investment funds and vehicles.

As of June 30, 2021, based on fair value, our portfolio consisted of 76.2% first lien senior secured debt investments, 16.5% second lien senior secured debt investments, 1.6% unsecured notes, 1.5% preferred equity investments, 2.8% common equity investments and 1.4% investment funds and vehicles.

As of September 30, 2021 and June 30, 2021, based on fair value, approximately 91.5% and 92.7% of the portfolio was invested in secured debt, respectively. As of September 30, 2021, 99.9% of our debt investments based on fair value in our portfolio were at floating rates.

As of September 30, 2021 and June 30, 2021, the weighted average total yield of accruing debt and income-producing securities at fair value (which includes interest income and amortization of fees and discounts)1 was 7.9% and 8.0%, respectively, and the weighted average total yield of accruing debt and income-producing securities at amortized cost (which includes interest income and amortization of fees and discounts)1 was 7.9% and 8.0%, respectively.

As of September 30, 2021, 2 investments with an aggregate fair value of $44.6 million were on non-accrual status, representing 0.4% of the total fair value of the portfolio.

________________
(1) For non-stated rate income producing investments, computed based on (a) the dividend or interest income earned for the respective trailing twelve months ended on the measurement date, divided by (b) the ending cost or fair value.  In instances where historical dividend or interest income data is not available or not representative for the trailing twelve months ended, the dividend or interest income is annualized. Prior to 9/30/2021, non-stated rate income producing investments were computed based on (a) the IRR on the measurement date, divided by (b) the ending cost or fair value. As of June 30, 2021, weighted average total yield of accruing debt and income producing securities at fair value and cost was reported at 8.3% and 8.2%, respectively.

RESULTS OF OPERATIONS FOR THE QUARTER ENDED SEPTEMBER 30, 2021

Investment Income
Investment income increased to $269.2 million for the three months ended September 30, 2021 from $187.1 million for the three months ended September 30, 2020, primarily due to an increase in our investment portfolio. Included in interest income is dividend income, which increased period over period, and other fees such as prepayment fees and accelerated amortization of upfront fees from unscheduled paydowns. Period over period, income generated from these other fees also increased, which is attributed to the increase in repayment activity.

Expenses
Total expenses increased to $137.0 million for the three months ended September 30, 2021 from $60.8 million, after the effect of the management and incentive fee waivers, for the three months ended September 30, 2020, primarily due to expiration of the management and incentive fee waivers in October 2020 and an increase in management fees and interest expense. Management fees increased period over period due to an increase in assets. The increase in interest expense was primarily driven by an increase in average daily borrowings, offset by a decrease in the average interest rate period over period.

Liquidity and Capital Resources
As of September 30, 2021, we had $794.7 million in cash and restricted cash, $7.0 billion in total principal value of debt outstanding, and $1.6 billion of undrawn capacity on our credit facilities. The Company's weighted average interest rate on debt outstanding was 2.9% and 3.0% for the three months ended September 30, 2021 and June 30, 2021, respectively. Ending debt to equity was 1.06x and 1.00x for the three months ended September 30, 2021 and June 30, 2021, respectively.

Conference Call and Webcast Information

Conference Call Information:
The conference call will be broadcast live on November 4, 2021 at 10:00 a.m. Eastern Time on the Investor Resources section of ORCC's website at www.OwlRockCapitalCorporation.com. Please visit the website to test your connection before the webcast. For a slide presentation that complements the earnings conference call, please visit the Events & Presentations page of the Investor Resources section of ORCC's website.

Participants are also invited to access the conference call by dialing one of the following numbers:

  • Domestic: 1 (888) 440-4182
  • International: (646) 960-0653
  • Conference ID: 7406736

All callers will need to enter the Conference ID followed by the # sign and reference "Owl Rock 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 Investor Resources section of ORCC's website, and via the dial-in numbers listed below:

  • Domestic: 1 (800) 770-2030
  • International: (647) 362-9199
  • Conference ID: 7406736

 

FINANCIAL HIGHLIGHTS




For the three months ended


 ($ in thousands except per share data)


September 30,
2021



June 30, 2021



September 30,
2020


Investments at Fair Value


$

12,110,098



$

11,906,872



$

9,918,302


Total Assets


$

13,075,878



$

12,635,426



$

10,234,261


Net Asset Value Per Share


$

14.95



$

14.90



$

14.67















Investment Income


$

269,191



$

249,015



$

187,059


Net Investment Income


$

130,499



$

119,129



$

127,437


Net Income


$

142,851



$

150,180



$

216,047















Net Investment Income Per Share


$

0.33



$

0.30



$

0.33


Net Realized and Unrealized Gains (and Losses)

Per Share


$

0.03



$

0.08



$

0.23


Net Income Per Share


$

0.36



$

0.38



$

0.56


Distributions Declared from Net Investment Income Per Share


$

0.31



$

0.31



$

0.39















Weighted Average Yield of Accruing Debt
and Income Producing Securities at Fair Value(1)



7.9

%



8.0

%



8.0

%

Weighted Average Yield of Accruing Debt
and Income Producing Securities at Amortized Cost(1)



7.9

%



8.0

%



7.9

%

Percentage of Debt Investment Commitments at

Floating Rates



99.9

%



99.9

%



98.8

%

















(1)

For non-stated rate income producing investments, computed based on (a) the dividend or interest income earned for the respective trailing twelve months ended on the measurement date, divided by (b) the ending cost or fair value.  In instances where historical dividend or interest income data is not available or not representative for the trailing twelve months ended, the dividend or interest income is annualized. Prior to 9/30/2021, non-stated rate income producing investments were computed based on (a) the IRR on the measurement date, divided by (b) the ending cost or fair value. As of June 30, 2021, weighted average total yield of accruing debt and income producing securities at fair value and cost was reported at 8.3% and 8.2%, respectively. As of September 30, 2020, weighted average total yield of accruing debt and income producing securities at fair value and cost was reported at 8.1% and 8.0%, respectively.

 

CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES


 ($ in thousands except per share data)


September 30, 2021

(Unaudited)



December 31, 2020


Assets









Investments at fair value









Non-controlled, non-affiliated investments
(amortized cost of $11,547,197 and $10,653,613, respectively)


$

11,584,751



$

10,569,691


Controlled, affiliated investments
(amortized cost of $527,704 and $275,105, respectively)



525,347




272,381


Total investments at fair value
(amortized cost of $12,074,901 and $10,928,718, respectively)



12,110,098




10,842,072


Cash (restricted cash of $14,217 and $8,841, respectively)



779,581




347,917


Foreign cash (cost of $15,326 and $9,641, respectively)



15,148




9,994


Interest receivable



62,377




57,108


Receivable for investments sold



77,426




6,316


Receivable from a controlled affiliate



4,127




2,347


Prepaid expenses and other assets



27,121




38,603


Total Assets


$

13,075,878



$

11,304,357


Liabilities









Debt (net of unamortized debt issuance costs of $114,874 and $91,085, respectively)


$

6,934,942



$

5,292,722


Distribution payable



121,877




152,087


Management fee payable



45,583




35,936


Incentive fee payable



27,682




19,070


Payables to affiliates



5,399




6,527


Accrued expenses and other liabilities



63,403




51,581


Total Liabilities



7,198,886




5,557,923


Commitments and contingencies









Net Assets









Common shares $0.01 par value, 500,000,000 shares authorized;
393,152,554 and 389,966,688 shares issued and outstanding, respectively



3,931




3,900


Additional paid-in-capital



5,985,429




5,940,979


Total distributable earnings (losses)



(112,368)




(198,445)


Total Net Assets



5,876,992




5,746,434


Total Liabilities and Net Assets


$

13,075,878



$

11,304,357


Net Asset Value Per Share


$

14.95



$

14.74


 

CONSOLIDATED STATEMENTS OF OPERATIONS




For the Three Months
Ended September 30,



For the Nine Months
Ended September 30,


 ($ in thousands except per share data)


2021



2020



2021



2020


Investment Income

















Investment income from non-controlled, non-affiliated investments:

















Interest income


$

241,966



$

179,597



$

686,314



$

561,236


Dividend Income



10,600




2,688




19,924




3,608


Other income



7,942




2,507




15,559




10,473


Total investment income from non-controlled, non-affiliated investments



260,508




184,792




721,797




575,317


Investment income from controlled, affiliated investments:

















Interest income



1,392







4,033





Dividend income



7,128




2,267




13,469




6,716


Other Income



163







480





Total investment income from controlled, affiliated investments



8,683




2,267




17,982




6,716


Total Investment Income



269,191




187,059




739,779




582,033


Expenses

















Interest expense



56,516




37,391




159,037




110,533


Management fee



45,586




36,460




131,703




104,852


Performance based incentive fees



27,682




22,302




74,727




70,500


Professional fees



3,849




3,330




10,966




9,782


Directors' fees



239




179




757




633


Other general and administrative



3,140




1,659




7,302




5,564


Total Operating Expenses



137,012




101,321




384,492




301,864


Management and incentive fees waived






(40,531)







(122,925)


Net Operating Expenses



137,012




60,790




384,492




178,939


Net Investment Income (Loss) Before Taxes



132,179




126,269




355,287




403,094


Income tax expense (benefit), including excise tax expense (benefit)



1,680




(1,168)




3,004




239


Net Investment Income (Loss) After Taxes


$

130,499



$

127,437



$

352,283



$

402,855


Net Realized and Change in Unrealized Gain (Loss)

















Net change in unrealized gain (loss):

















Non-controlled, non-affiliated investments


$

14,475



$

80,619



$

133,961



$

(196,001)


Income tax (provision) benefit



(4,383)







(8,605)





Controlled affiliated investments



985




4,615




367




(3,536)


Translation of assets and liabilities in foreign currencies



(796)




3,113




(3,716)




3,237


Total Net Change in Unrealized Gain (Loss)



10,281




88,347




122,007




(196,300)


Net realized gain (loss):

















Non-controlled, non-affiliated investments



2,018




2,537




(24,656)




2,885


Foreign currency transactions



53




(2,274)




1,242




(2,364)


Total Net Realized Gain (Loss)



2,071




263




(23,414)




521


Total Net Realized and Change in Unrealized Gain (Loss)



12,352




88,610




98,593




(195,779)


Net Increase (Decrease) in Net Assets Resulting from Operations


$

142,851



$

216,047



$

450,876



$

207,076


Earnings Per Share - Basic and Diluted


$

0.36



$

0.56



$

1.15



$

0.53


Weighted Average Shares Outstanding - Basic and Diluted



392,715,513




386,534,213




391,893,306




388,474,850


 

PORTFOLIO AND INVESTMENT ACTIVITY




For the Three Months Ended September 30,


($ in thousands)


2021



2020(3)


New investment commitments









Gross originations


$

3,257,404




957,015


Less: Sell downs



(463,419)




(113,404)


Total new investment commitments


$

2,793,985



$

843,611


Principal amount of investments funded:









First-lien senior secured debt investments


$

2,154,036



$

483,756


Second-lien senior secured debt investments



71,000




121,592


Unsecured debt investments






41,463


Preferred equity investments



975





Common equity investments



8,820





Investment funds and vehicles



57,750





Total principal amount of investments funded


$

2,292,581



$

646,811


Principal amount of investments sold or repaid:









First-lien senior secured debt investments


$

(1,815,765)



$

(44,711)


Second-lien senior secured debt investments



(278,613)




(3,517)


Unsecured debt investments







Preferred Equity investments







Common Equity investments







Investment funds and vehicles







Total principal amount of investments sold or repaid


$

(2,094,378)



$

(48,228)


Number of new investment commitments in new
portfolio companies(1)



21



8


Average new investment commitment amount



104,913



$

90,138


Weighted average term for new debt investment
commitments (in years)



5.7




6.1


Percentage of new debt investment commitments at

floating rates



100.0

%



100.0

%

Percentage of new debt investment commitments at

fixed rates



0.0

%



0.0

%

Weighted average interest rate of new debt investment

commitments(2)



7.1

%



8.2

%

Weighted average spread over LIBOR of new floating
rate debt investment commitments



6.2

%



7.2

%

________________

(1)

Number of new investment commitments represents commitments to a particular portfolio company.

(2)

Assumes each floating rate commitment is subject to the greater of the interest rate floor (if applicable) or 3-month LIBOR, which was 0.13% and 0.23% as of September 30, 2021 and 2020, respectively.

(3)

As of September 30, 2020, preferred equity investments and common equity investments were reported in aggregate as equity investments.

ABOUT OWL ROCK CAPITAL CORPORATION

Owl Rock Capital Corporation (NYSE: ORCC) is a specialty finance company focused on lending to U.S. middle-market companies. As of September 30, 2021, ORCC had investments in 130 portfolio companies with an aggregate fair value of $12.1 billion. ORCC has elected to be regulated as a business development company under the Investment Company Act of 1940, as amended. ORCC is externally managed by Owl Rock Capital Advisors LLC, an SEC-registered investment adviser that is an indirect affiliate of Blue Owl Capital Inc. ("Blue Owl") (NYSE: OWL) and part of Owl Rock, a division of Blue Owl.

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 ORCC, 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 ORCC'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 ORCC'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 ORCC makes them. ORCC 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.

INVESTOR CONTACTS

Investor Contact:
Dana Sclafani
212-651-4705
orccir@blueowl.com

Media Contact:
Prosek Partners
David Wells / Josh Clarkson
pro-blueowl@prosek.com

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SOURCE Owl Rock Capital Corporation