Quarterly report pursuant to Section 13 or 15(d)

N-2

v3.22.2.2
N-2 - USD ($)
$ / shares in Units, $ in Millions
9 Months Ended 12 Months Ended
Sep. 30, 2022
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Cover [Abstract]              
Entity Central Index Key 0001655888            
Amendment Flag false            
Securities Act File Number 814-01190            
Document Type 10-Q            
Entity Registrant Name OWL ROCK CAPITAL CORP            
Entity Address, Address Line One 399 Park Avenue            
Entity Address, Address Line Two 38th Floor            
Entity Address, City or Town New York            
Entity Address, State or Province NY            
Entity Address, Postal Zip Code 10022            
City Area Code 212            
Local Phone Number 419-3000            
Entity Emerging Growth Company false            
Financial Highlights [Abstract]              
Senior Securities [Table Text Block]
Information about our senior securities is shown in the following table as of September 30, 2022 and the fiscal years ended December 31, 2021, 2020, 2019, 2018, 2017 and 2016.

Class and Period Total Amount Outstanding Exclusive of Treasury Securities(1)
($ in millions)
Asset Coverage per Unit(2) Involuntary Liquidating Preference per Unit(3) Average Market Value per Unit(4)
Revolving Credit Facility
September 30, 2022 (unaudited) $ 406.9  $ 1,795  —  N/A
December 31, 2021 $ 892.3  $ 1,820  —  N/A
December 31, 2020 $ 252.5  $ 2,060  —  N/A
December 31, 2019 $ 480.9  $ 2,926  —  N/A
December 31, 2018 $ 308.6  $ 2,254  —  N/A
December 31, 2017 $ —  $ 2,580  —  N/A
SPV Asset Facility I(6)
December 31, 2020 $ —  $ —  —  N/A
December 31, 2019 $ 300.0  $ 2,926  —  N/A
December 31, 2018 $ 400.0  $ 2,254  —  N/A
December 31, 2017 $ 400.0  $ 2,580  —  N/A
SPV Asset Facility II
September 30, 2022 (unaudited) $ 250.0  $ 1,795  —  N/A
December 31, 2021 $ 100.0  $ 1,820  —  N/A
December 31, 2020 $ 100.0  $ 2,060  —  N/A
December 31, 2019 $ 350.0  $ 2,926  —  N/A
December 31, 2018 $ 550.0  $ 2,254  —  N/A
SPV Asset Facility III
September 30, 2022 (unaudited) $ 250.0  $ 1,795  —  N/A
December 31, 2021 $ 190.0  $ 1,820  —  N/A
December 31, 2020 $ 375.0  $ 2,060  —  N/A
December 31, 2019 $ 255.0  $ 2,926  —  N/A
December 31, 2018 $ 300.0  $ 2,254  —  N/A
SPV Asset Facility IV
September 30, 2022 (unaudited) $ 76.5  $ 1,795  —  N/A
December 31, 2021 $ 155.0  $ 1,820  —  N/A
December 31, 2020 $ 295.0  $ 2,060  —  N/A
December 31, 2019 $ 60.3  $ 2,926  —  N/A
CLO I
September 30, 2022 (unaudited) $ 390.0  $ 1,795  —  N/A
December 31, 2021 $ 390.0  $ 1,820  —  N/A
December 31, 2020 $ 390.0  $ 2,060  —  N/A
December 31, 2019 $ 390.0  $ 2,926  —  N/A
CLO II
September 30, 2022 (unaudited) $ 260.0  $ 1,795  —  N/A
December 31, 2021 $ 260.0  $ 1,820  —  N/A
December 31, 2020 $ 260.0  $ 2,060  —  N/A
December 31, 2019 $ 260.0  $ 2,926  —  N/A
CLO III
September 30, 2022 (unaudited) $ 260.0  $ 1,795  —  N/A
December 31, 2021 $ 260.0  $ 1,820  —  N/A
December 31, 2020 $ 260.0  $ 2,060  —  N/A
CLO IV
September 30, 2022 (unaudited) $ 292.5  $ 1,795  —  N/A
December 31, 2021 $ 292.5  $ 1,820  —  N/A
December 31, 2020 $ 252.0  $ 2,060  —  N/A
Class and Period Total Amount Outstanding Exclusive of Treasury Securities(1)
($ in millions)
Asset Coverage per Unit(2) Involuntary Liquidating Preference per Unit(3) Average Market Value per Unit(4)
CLO V
September 30, 2022 (unaudited) $ 509.6  $ 1,795  —  N/A
December 31, 2021 $ 196.0  $ 1,820  —  N/A
December 31, 2020 $ 196.0  $ 2,060  —  N/A
CLO VI
September 30, 2022 (unaudited) $ 260.0  $ 1,795  —  N/A
December 31, 2021 $ 260.0  $ 1,820  —  N/A
CLO VII
September 30, 2022 (unaudited) $ 239.2  $ 1,795  —  N/A
Subscription Credit Facility(5)
December 31, 2019 $ —  $ —  —  N/A
December 31, 2018 $ 883.0  $ 2,254  —  N/A
December 31, 2017 $ 393.5  $ 2,580  —  N/A
December 31, 2016 $ 495.0  $ 2,375  —  N/A
2023 Notes(7)
December 31, 2021 $ —  $ —  —  N/A
December 31, 2020 $ 150.0  $ 2,060  —  N/A
December 31, 2019 $ 150.0  $ 2,926  —  N/A
December 31, 2018 $ 150.0  $ 2,254  —  N/A
December 31, 2017 $ 138.5  $ 2,580  —  N/A
2024 Notes
September 30, 2022 (unaudited) $ 400.0  $ 1,795  —  $ 1,017.0 
December 31, 2021 $ 400.0  $ 1,820  —  $ 1,089.7 
December 31, 2020 $ 400.0  $ 2,060  —  $ 1,037.1 
December 31, 2019 $ 400.0  $ 2,926  —  $ 1,039.3 
2025 Notes
September 30, 2022 (unaudited) $ 425.0  $ 1,795  —  $ 979.0 
December 31, 2021 $ 425.0  $ 1,820  —  $ 1,057.3 
December 31, 2020 $ 425.0  $ 2,060  —  $ 984.2 
December 31, 2019 $ 425.0  $ 2,926  —  $ 997.9 
July 2025 Notes
September 30, 2022 (unaudited) $ 500.0  $ 1,795  —  $ 963.0 
December 31, 2021 $ 500.0  $ 1,820  —  $ 1,049.9 
December 31, 2020 $ 500.0  $ 2,060  —  $ 971.1 
2026 Notes
September 30, 2022 (unaudited) $ 500.0  $ 1,795  —  $ 970.0 
December 31, 2021 $ 500.0  $ 1,820  —  $ 1,068.7 
December 31, 2020 $ 500.0  $ 2,060  —  $ 1,018.5 
July 2026 Notes
September 30, 2022 (unaudited) $ 1,000.0  $ 1,795  —  $ 925.0 
December 31, 2021 $ 1,000.0  $ 1,820  —  $ 1,032.8 
December 31, 2020 $ 1,000.0  $ 2,060  —  $ 1,005.0 
2027 Notes
September 30, 2022 (unaudited) $ 500.0  $ 1,795  —  $ 880.0 
December 31, 2021 $ 500.0  $ 1,820  —  $ 997.4 
2028 Notes
September 30, 2022 (unaudited) $ 850.0  $ 1,795  —  $ 855.0 
December 31, 2021 $ 850.0  $ 1,820  —  $ 994.3 
________________
(1)Total amount of each class of senior securities outstanding at the end of the period presented.
(2)Asset coverage per unit is the ratio of the carrying value of our total assets, less all liabilities excluding indebtedness represented by senior securities in this table, to the aggregate amount of senior securities representing indebtedness. Asset coverage per unit is expressed in terms of dollar amounts per $1,000 of indebtedness and is calculated on a consolidated basis.
(3)The amount to which such class of senior security would be entitled upon our involuntary liquidation in preference to any security junior to it. The “—" in this column indicates information that the SEC expressly does not require to be disclosed for certain types of senior securities.
(4)Not applicable, except for with respect to the 2024 Notes, 2025 Notes, July 2025 Notes, 2026 Notes, July 2026 Notes, 2027 Notes and 2028 Notes as other senior securities are not registered for public trading on a stock exchange. The average market value per unit for each of the 2024 Notes, 2025 Notes, July 2025 Notes, 2026 Notes, July 2026 Notes, 2027 Notes and 2028 Notes is based on the average daily prices of such notes and is expressed per $1,000 of indebtedness.
(5)Facility was terminated in 2019.
(6)Facility was terminated in 2020.
(7)On November 23, 2021, we caused notice to be issued to the holders of the 2023 Notes regarding our exercise of the option to redeem in full all $150 million in aggregate principal amount of the 2023 Notes at 100% of their principal amount, plus the accrued and unpaid interest thereon through, but excluding, the redemption date, December 23, 2021. On December 23, 2021, we redeemed in full all $150 million in aggregate principal amount of the 2023 Notes at 100% of their principal amount, plus the accrued and unpaid interest thereon through, but excluding, December 23, 2021.
           
Senior Securities Averaging Method, Note [Text Block] Not applicable, except for with respect to the 2024 Notes, 2025 Notes, July 2025 Notes, 2026 Notes, July 2026 Notes, 2027 Notes and 2028 Notes as other senior securities are not registered for public trading on a stock exchange. The average market value per unit for each of the 2024 Notes, 2025 Notes, July 2025 Notes, 2026 Notes, July 2026 Notes, 2027 Notes and 2028 Notes is based on the average daily prices of such notes and is expressed per $1,000 of indebtedness.            
Senior Securities Headings, Note [Text Block] Total amount of each class of senior securities outstanding at the end of the period presented. Asset coverage per unit is the ratio of the carrying value of our total assets, less all liabilities excluding indebtedness represented by senior securities in this table, to the aggregate amount of senior securities representing indebtedness. Asset coverage per unit is expressed in terms of dollar amounts per $1,000 of indebtedness and is calculated on a consolidated basis. The amount to which such class of senior security would be entitled upon our involuntary liquidation in preference to any security junior to it. The “—" in this column indicates information that the SEC expressly does not require to be disclosed for certain types of senior securities.            
General Description of Registrant [Abstract]              
Investment Objectives and Practices [Text Block]
Our Investment Framework
We are a Maryland corporation organized primarily to originate and make loans to, and make debt and equity investments in, U.S. middle market companies. Our investment objective is to generate current income, and to a lesser extent, capital appreciation by targeting investment opportunities with favorable risk-adjusted returns. Since our Adviser and its affiliates began investment activities in April 2016 through September 30, 2022, our Adviser and its affiliates have originated $69.4 billion aggregate principal amount of investments, of which $65.9 billion of aggregate principal amount of investments prior to any subsequent exits or repayments, was retained by either us or a corporation or fund advised by our Adviser or its affiliates. We seek to participate in transactions sponsored by what we believe to be high-quality private equity and venture capital firms capable of providing both operational and financial
resources. We seek to generate current income primarily in U.S. middle market companies through direct originations of senior secured loans or originations of unsecured loans, subordinated loans or mezzanine loans, broadly syndicated loans and, to a lesser extent, investments in equity and equity-related securities including warrants, preferred stock and similar forms of senior equity. Our equity investments are typically not control-oriented investments and we may structure such equity investments to include provisions protecting our rights as a minority-interest holder.
We define “middle market companies” generally to mean companies with earnings before interest expense, income tax expense, depreciation and amortization, or “EBITDA,” between $10 million and $250 million annually and/or annual revenue of $50 million to $2.5 billion at the time of investment, although we may on occasion invest in smaller or larger companies if an opportunity presents itself. We generally seek to invest in companies with a loan-to-value ratio of 50% or below.
We expect that generally our portfolio composition will be majority debt or income producing securities, which may include “covenant-lite” loans (as defined below), with a lesser allocation to equity or equity-linked opportunities, which we may hold directly or through special purpose vehicles. In addition, we may invest a portion of our portfolio in opportunistic investments and broadly syndicated loans, which will not be our primary focus, but will be intended to enhance returns to our shareholders and from time to time, we may evaluate and enter into strategic portfolio transactions which may result in additional portfolio companies which we are considered to control. These investments may include high-yield bonds and broadly-syndicated loans, including publicly traded debt instruments, which are typically originated and structured by banks on behalf of large corporate borrowers with employee counts, revenues, EBITDAs and enterprise values larger than the middle market characteristics described above. In addition, we generally do not intend to invest more than 20% of our total assets in companies whose principal place of business is outside the United States, although we do not generally intend to invest in companies whose principal place of business is in an emerging market. Our portfolio composition may fluctuate from time to time based on market conditions and interest rates.
Covenants are contractual restrictions that lenders place on companies to limit the corporate actions a company may pursue. Generally, the loans in which we expect to invest will have financial maintenance covenants, which are used to proactively address materially adverse changes in a portfolio company’s financial performance. However, to a lesser extent, we may invest in “covenant-lite” loans. We use the term “covenant-lite” to refer generally to loans that do not have a complete set of financial maintenance covenants. Generally, “covenant-lite” loans provide borrower companies more freedom to negatively impact lenders because their covenants are incurrence-based, which means they are only tested and can only be breached following an affirmative action of the borrower, rather than by a deterioration in the borrower’s financial condition. Accordingly, to the extent we invest in “covenant-lite” loans, we may have fewer rights against a borrower and may have a greater risk of loss on such investments as compared to investments in or exposure to loans with financial maintenance covenants.
We target portfolio companies where we can structure larger transactions. As of September 30, 2022, our average debt investment size in each of our portfolio companies was approximately $68.4 million based on fair value. As of September 30, 2022, our portfolio companies, excluding the investment in ORCC SLF and certain investments that fall outside of our typical borrower profile and represent 82.3% of our total debt portfolio based on fair value, had weighted average annual revenue of $737 million, weighted average annual EBITDA of $159 million and an average interest coverage of 2.5x.
The companies in which we invest use our capital to support their growth, acquisitions, market or product expansion, refinancings and/or recapitalizations. The debt in which we invest typically is not rated by any rating agency, but if these instruments were rated, they would likely receive a rating of below investment grade (that is, below BBB- or Baa3), which is often referred to as “high yield” or “junk”.
A majority of our new investments are indexed to SOFR; however we have material contracts that are indexed to USD-LIBOR and are monitoring this activity, evaluating the related risks and our exposure, and adding alternative language to contracts, where necessary. Certain contracts have an orderly market transition already in process. However, it is not possible to predict the effect of any of these developments, and any future initiatives to regulate, reform or change the manner of administration of LIBOR could result in adverse consequences to the rate of interest payable and receivable on, market value of and market liquidity for LIBOR-based financial instruments.
           
Senior Secured Revolving Credit Facility [Member]              
Financial Highlights [Abstract]              
Senior Securities Amount $ 406.9 $ 892.3 $ 252.5 $ 480.9 $ 308.6 $ 0.0  
Senior Securities Coverage per Unit $ 1,795 $ 1,820 $ 2,060 $ 2,926 $ 2,254 $ 2,580  
SPV Asset Facility I [Member]              
Financial Highlights [Abstract]              
Senior Securities Amount     $ 0.0 $ 300.0 $ 400.0 $ 400.0  
Senior Securities Coverage per Unit     $ 0 $ 2,926 $ 2,254 $ 2,580  
SPV Asset Facility II [Member]              
Financial Highlights [Abstract]              
Senior Securities Amount $ 250.0 $ 100.0 $ 100.0 $ 350.0 $ 550.0    
Senior Securities Coverage per Unit $ 1,795 $ 1,820 $ 2,060 $ 2,926 $ 2,254    
SPV Asset Facility III [Member]              
Financial Highlights [Abstract]              
Senior Securities Amount $ 250.0 $ 190.0 $ 375.0 $ 255.0 $ 300.0    
Senior Securities Coverage per Unit $ 1,795 $ 1,820 $ 2,060 $ 2,926 $ 2,254    
SPV Asset Facility IV [Member]              
Financial Highlights [Abstract]              
Senior Securities Amount $ 76.5 $ 155.0 $ 295.0 $ 60.3      
Senior Securities Coverage per Unit $ 1,795 $ 1,820 $ 2,060 $ 2,926      
CLO I [Member]              
Financial Highlights [Abstract]              
Senior Securities Amount $ 390.0 $ 390.0 $ 390.0 $ 390.0      
Senior Securities Coverage per Unit $ 1,795 $ 1,820 $ 2,060 $ 2,926      
CLO II [Member]              
Financial Highlights [Abstract]              
Senior Securities Amount $ 260.0 $ 260.0 $ 260.0 $ 260.0      
Senior Securities Coverage per Unit $ 1,795 $ 1,820 $ 2,060 $ 2,926      
CLO III [Member]              
Financial Highlights [Abstract]              
Senior Securities Amount $ 260.0 $ 260.0 $ 260.0        
Senior Securities Coverage per Unit $ 1,795 $ 1,820 $ 2,060        
CLO IV [Member]              
Financial Highlights [Abstract]              
Senior Securities Amount $ 292.5 $ 292.5 $ 252.0        
Senior Securities Coverage per Unit $ 1,795 $ 1,820 $ 2,060        
CLO V [Member]              
Financial Highlights [Abstract]              
Senior Securities Amount $ 509.6 $ 196.0 $ 196.0        
Senior Securities Coverage per Unit $ 1,795 $ 1,820 $ 2,060        
CLO VI [Member]              
Financial Highlights [Abstract]              
Senior Securities Amount $ 260.0 $ 260.0          
Senior Securities Coverage per Unit $ 1,795 $ 1,820          
CLO VII [Member]              
Financial Highlights [Abstract]              
Senior Securities Amount $ 239.2            
Senior Securities Coverage per Unit $ 1,795            
Subscription Credit Facility [Member]              
Financial Highlights [Abstract]              
Senior Securities Amount       $ 0.0 $ 883.0 $ 393.5 $ 495.0
Senior Securities Coverage per Unit       $ 0 $ 2,254 $ 2,580 $ 2,375
Notes 2023 [Member]              
Financial Highlights [Abstract]              
Senior Securities Amount   $ 0.0 $ 150.0 $ 150.0 $ 150.0 $ 138.5  
Senior Securities Coverage per Unit   $ 0 $ 2,060 $ 2,926 $ 2,254 $ 2,580  
Notes 2024 [Member]              
Financial Highlights [Abstract]              
Senior Securities Amount $ 400.0 $ 400.0 $ 400.0 $ 400.0      
Senior Securities Coverage per Unit $ 1,795 $ 1,820 $ 2,060 $ 2,926      
Senior Securities Average Market Value per Unit $ 1,017 $ 1,089.7 $ 1,037.1 $ 1,039.3      
Notes 2025 [Member]              
Financial Highlights [Abstract]              
Senior Securities Amount $ 425.0 $ 425.0 $ 425.0 $ 425.0      
Senior Securities Coverage per Unit $ 1,795 $ 1,820 $ 2,060 $ 2,926      
Senior Securities Average Market Value per Unit $ 979.0 $ 1,057.3 $ 984.2 $ 997.9      
Notes July 2025 [Member]              
Financial Highlights [Abstract]              
Senior Securities Amount $ 500.0 $ 500.0 $ 500.0        
Senior Securities Coverage per Unit $ 1,795 $ 1,820 $ 2,060        
Senior Securities Average Market Value per Unit $ 963.0 $ 1,049.9 $ 971.1        
Notes 2026 [Member]              
Financial Highlights [Abstract]              
Senior Securities Amount $ 500.0 $ 500.0 $ 500.0        
Senior Securities Coverage per Unit $ 1,795 $ 1,820 $ 2,060        
Senior Securities Average Market Value per Unit $ 970.0 $ 1,068.7 $ 1,018.5        
Notes July 2026 [Member]              
Financial Highlights [Abstract]              
Senior Securities Amount $ 1,000.0 $ 1,000.0 $ 1,000.0        
Senior Securities Coverage per Unit $ 1,795 $ 1,820 $ 2,060        
Senior Securities Average Market Value per Unit $ 925.0 $ 1,032.8 $ 1,005        
Notes 2027 [Member]              
Financial Highlights [Abstract]              
Senior Securities Amount $ 500.0 $ 500.0          
Senior Securities Coverage per Unit $ 1,795 $ 1,820          
Senior Securities Average Market Value per Unit $ 880.0 $ 997.4          
Notes 2028 [Member]              
Financial Highlights [Abstract]              
Senior Securities Amount $ 850.0 $ 850.0          
Senior Securities Coverage per Unit $ 1,795 $ 1,820          
Senior Securities Average Market Value per Unit $ 855.0 $ 994.3