Owl Rock Capital Corp
F:1D6

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Owl Rock Capital Corp
F:1D6
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Price: 11.09 EUR -0.72% Market Closed
Market Cap: 4.3B EUR

Owl Rock Capital Corp
Investor Relations

Owl Rock Capital Corp., a notable player in the financial jungle, thrives at the intersection of traditional finance and innovative approaches to credit investing. Born out of the formidable minds at Owl Rock Capital Advisors, the company positions itself as a reliable source of capital for middle-market companies in the United States. These are businesses often overlooked by traditional lenders due to their size and unique risk profiles. Owl Rock Capital Corp. understands that these firms, with annual revenues ranging from $10 million to $1 billion, require bespoke financial solutions, not the one-size-fits-all approach of larger institutions. As a business development company (BDC), Owl Rock capitalizes on regulatory structures that enable it to provide debt and equity to these underrepresented sectors, facilitating growth that traditional banks might deem too risky.

At its core, Owl Rock Capital Corp. crafts its revenues through strategic lending and disciplined investment. By extending credit facilities such as senior secured loans, unsecured loans, and mezzanine loans, it earns interest income. This interest, accrued over the duration of the loan agreements, forms the foundational revenue stream for the company. Additionally, Owl Rock Capital can partake in upside potential through equity investments, obtaining ownership stakes in these burgeoning companies as part of their financing package. With this approach, the company not only cultivates an ecosystem of financially healthy borrowers but also fosters long-term, stable cash flows that appeal to its investors, who are often on the lookout for dividend-generating, lower-volatility investment opportunities. By tailoring each financial arrangement to the specific contours of its clients, Owl Rock ensures that its investments are both expertly diversified and singularly impactful.

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Last Earnings Call
Fiscal Period
Q3 2025
Call Date
Nov 6, 2025
AI Summary
Q3 2025

Results: OBDC reported adjusted net investment income of $0.36 per share and a return on equity of 9.5%, in line with long-term averages but below previous peak levels due to lower rates and nonrecurring income.

Dividend: The Board declared a fourth quarter base dividend of $0.37 per share, to be paid in January 2026. No supplemental dividend was declared this quarter due to lower earnings.

Merger: OBDC announced a merger agreement to acquire OBDC II, adding nearly $1 billion in net assets and expected to result in NII accretion and $5 million in annual cost savings.

Portfolio Quality: Portfolio fundamentals remain strong, with a nonaccrual rate of 1.3% and most credit metrics stable or improving. Watchlist positions were marked down, but no new credit issues observed.

Leverage & Liquidity: Net leverage increased slightly to 1.22x, within the target range. OBDC remains well capitalized with over $3 billion in liquidity and no near-term maturities.

Share Repurchase: A new $200 million share repurchase program was authorized, replacing the previous $150 million plan.

Guidance: Management expects earnings and dividends to adjust lower if base rates continue to decline, but remains confident in portfolio quality and long-term dividend sustainability.

Market & Outlook: Deal activity and pipeline have picked up, with optimism for increased M&A and fee income. Spreads remain tight, but management expects future normalization.

Key Financials
Adjusted Net Investment Income per Share
$0.36
Return on Equity
9.5%
Net Asset Value per Share
$14.89
Nonaccrual Rate (at fair value)
1.3%
Net Leverage
1.22x
Total Portfolio Investments
$17 billion
Total Net Assets
nearly $8 billion
Total Outstanding Debt
$9.5 billion
Fourth Quarter Base Dividend per Share
$0.37
Spillover Income per Share
$0.31
PIK Income as % of Total Investment Income
9.5%
Average Hold Size on New Direct Lending Deals (2025)
$350 million
Average Deal Size (Direct Lending Platform)
nearly $1.5 billion
Percentage of Portfolio in Senior Secured Investments
89%
Cumulative Fair Value of 3 to 5 Rated Names
8%
Average Revolver Draws
below 20%
Average Portfolio Company Revenue
over $1 billion
Average Portfolio Company EBITDA
$229 million
Interest Coverage Ratio
approximately 2x
Average Loan-to-Value (LTV)
42%
Q3 Originations
$1.3 billion
Q3 Fundings
$1.1 billion
Q3 Repayments
$797 million
Total Cash and Facility Capacity
over $3 billion
Add-on Originations (as % of total)
approximately 40%
Other Earnings Calls

Management

Contacts

Address
NEW YORK
New York City
399 Park Avenue, 38Th Floor
Contacts