Q2 2024 Blue Owl Capital Corp Earnings Call Transcript
Key Points
- Blue Owl Capital Corp (OBDC) reported a strong quarter with $0.48 of net investment income per share, up from the previous quarter.
- The company announced a merger with Blue Owl Capital Corporation III (OBDE), which is expected to provide long-term strategic value and increase total investments to approximately $17.7 billion.
- The merger is anticipated to enhance portfolio diversification, improve trading liquidity, and provide access to lower-cost debt financing.
- OBDC has maintained a strong annualized ROE of 12.6% and delivered a double-digit dividend yield for six consecutive quarters.
- The merger is expected to result in operational efficiencies and cost savings, with estimated savings of over $5 million in the first year.
- The merger is subject to customary closing conditions, including shareholder approval, which introduces uncertainty.
- There were credit-related markdowns on two investments, resulting in a NAV decline of $0.09 for the quarter.
- The market environment has seen increased short-term volatility, which could impact future performance.
- OBDC's leverage is at the high end of its target range, which may limit flexibility in managing debt.
- The merger could initially result in slight dilution to net investment income before accretive benefits are realized.
Good morning, everyone. Welcome to Blue Owl Capital Corporation's second quarter 2024 earnings call. As a reminder, this call is being recorded.
At this time, I'd like to turn the call over to Mike Mosticchio, Head of BDC Investor Relations for OBDC. Thank you.
Thanks, operator, and good morning to everyone joining.
I'd like to remind listeners that remarks made during today's call may contain forward-looking statements, which are not a guarantee of future performance or results and involve a number of risks and uncertainties that are outside the company's control.
Actual results may differ materially from those in forward-looking statements as a result of a number of factors, including those described in OBDC's filings with the SEC. The company assumes no obligation to update any forward-looking statements.
Certain information discussed on this call and in the company's earnings materials, including information related to portfolio companies, was derived from
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