Exhibit 99.1

 

Third Quarter 2019 Earnings Results

 

Owl Rock Capital Corp. Reports Third Quarter Net Investment Income Per Share of $0.36 and NAV Per Share of $15.22

NEW YORK— October 30, 2019 — Owl Rock Capital Corporation (NYSE: ORCC, or the “Company”) today reported net investment income of $137.9 million, or $0.36 per share, and net income of $118.7 million, or $0.31 per share, for the third quarter ended September 30, 2019. Reported net asset value per share was $15.22 at September 30, 2019 as compared to $15.28 at June 30, 2019.

The Company’s Board of Directors has declared a fourth quarter 2019 dividend of $0.31 per share and had previously declared a special dividend of $0.04 per share, both for stockholders of record as of December 31, 2019, payable on or before January 31, 2020.

The Board of Directors also previously declared the following special dividends, for shareholders of record as of the last day of each respective quarter:

§     Q1 2020: $0.08 per share

§     Q2 2020: $0.08 per share

§     Q3 2020: $0.08 per share

§     Q4 2020: $0.08 per share

The Company agent will repurchase shares of common stock on the Company’s behalf when the market price per share is below the most recently reported net asset value per share. This corresponds to a market price of $15.21 based on September 30, 2019 NAV per share of $15.22. The Company 10b5-1 Plan commenced August 19, 2019 and will terminate upon the earliest to occur of (i) February 19, 2021 or (ii) such time as the approved $150 million repurchase amount has been fully utilized, subject to certain conditions.

Net Investment Income

Q3 2019 ($ mm)

$137.9

Q3 2019 (per share)

$0.36

 

 

Net Income

Q3 2019 ($ mm)

$118.7

Q3 2019 (per share)

$0.31

 

 

Net Asset Value

Q3 2019 ($ mm)

$5,925

Q3 2019 (per share)

$15.22

 

 

Dividend (per share)

Q4 2019 Fixed

$0.31

Q4 2019 Special

$0.04

 

 

 

www.OwlRockCapitalCorporation.com

NYSE: ORCC | 1

 

Portfolio and Investing Activity

 

 

For the three months ended September 30, 2019, new investment commitments totaled $1,542.7 million. This compares to $953.4 million for the three months ended June 30, 2019.

 

For the three months ended September 30, 2019, the principal amount of new investments funded was $1,074.8 million across 10 new portfolio companies and 9 existing portfolio companies. For this period, the Company had $215.3 million aggregate principal amount in exits and repayments.

 

For the quarter ended June 30, 2019, the principal amount of new investments funded was $772.9 million across 13 new portfolio companies and 13 existing portfolio companies. For this period, the Company had $465.2 million aggregate principal amount in exits and repayments.

 

As of September 30, 2019 and June 30, 2019, the Company had investments in 96 and 90 portfolio companies with an aggregate fair value of $8.3 billion and $7.2 billion, respectively. As of September 30, 2019, the average investment size in each portfolio company was $86.1 million based on fair value.

 

As of September 30, 2019, based on fair value, our portfolio consisted of 79.4% first lien senior secured debt investments, 19.3% second lien senior secured debt investments, 1.1% investment funds and vehicles, and 0.2% equity investments.

 

As of June 30, 2019, based on fair value, our portfolio consisted of 81.3% first lien senior secured debt investments, 16.9% second lien senior secured debt investments, 0.3% unsecured debt investments, 1.3% investment funds and vehicles, and 0.2% equity investments.

 

As of September 30, 2019 and June 30, 2019, approximately 98.7% and 98.2% of the portfolio was invested in secured debt, respectively. As of September 30, 2019, 100.0% of our debt investments based on fair value in our portfolio were at floating rates.

 

As of September 30, 2019 and June 30, 2019, the weighted average total yield of debt and income-producing securities at fair value (which includes interest income and amortization of fees and discounts) was 9.0% and 9.1%, respectively, and the weighted average total yield of debt and income-producing securities at amortized cost (which includes interest income and amortization of fees and discounts) was 8.9% and 9.1%, respectively.

 

As of September 30, 2019, no investments were on non-accrual status.

 

New Investment Commitments

$1,542.7 million

 

 

Net Fundings

$1,074.8 million

 

 

Average Investment Size

$86.1 million
(1.0% of the portfolio at fair value)

 

 

First Lien Debt Investments (% FV)

79.4%

 

 

Secured Investments (% FV)

98.7%

 

 

 

Borrower EBITDA

$77 million1

 

 

Weighted Average Portfolio Yield2

Fair Value

8.9%

Amortized Cost

8.9%

 

1.    Borrower EBITDA is derived from the most recently available portfolio company financial statements, has not been independently verified by Owl Rock, and may reflect a normalized or adjusted amount. Accordingly, Owl Rock makes no representation or warranty in respect of this information. This represents 96.3% of our total portfolio based on fair value and excludes certain investments that fall outside of our typical borrower profile.

2.    Weighted average total yield of the portfolio.

 

www.OwlRockCapitalCorporation.com

NYSE: ORCC | 2

 

 

Results of Operations for the Three Months Ended September 30, 2019

 

Investment Income

Investment income increased to $188.1 million for the three months ended September 30, 2019 from $176.1 million for the three months ended June 30, 2019. The increase was primarily due to an increase in interest income as a result of an increase in our investment portfolio.

 

Expenses

Total net expenses decreased to $49.9 million for the three months ended September 30, 2019 from $56.7 million for the three months ended June 30, 2019, primarily due to lower interest expense as a result of decreased leverage in the quarter following the final capital call in June.

 

Liquidity and Capital Resources

As of September 30, 2019, we had $198 million in cash and restricted cash, $2.5 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 5.1% and 5.0% for the three months ended September 30, 2019 and June 30, 2019, respectively. Average debt to equity was 0.35x and 0.65x during the three months ended September 30, 2019 and June 30, 2019, respectively.

 

Total Investment Income

$188.1 million

 

 

Total Expenses

$49.9 million

 

 

Principal Debt Outstanding

$2.5 billion

 

 

Available Liquidity

$1.6 billion 1

 

 

Debt to Equity Ratio

Q3 2019 Quarter-end

0.39x

Q3 2019 Average 2

0.35x

 

1.               The amount available does not reflect limitations related to each credit facility’s borrowing base. Reflects the use of the 2025 Notes proceeds to pay down a portion of the Secured Revolver.

2.               Daily average debt outstanding during the quarter divided by daily average net assets during the quarter. Daily average net assets is calculated by starting with the prior quarter end net asset value and adjusting for capital activity during the quarter.

 

www.OwlRockCapitalCorporation.com

NYSE: ORCC | 3

 

Conference Call and Webcast Information

 

Conference Call Information:

The conference call will be broadcast live on October 31, 2019 at 9:00 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.

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

Domestic: (866) 393-4306

International: (734) 385-2616

Conference ID: 6251428

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: (855) 859-2056

International: (404) 537-3406

Conference ID: 6251428

 

www.OwlRockCapitalCorporation.com

NYSE: ORCC | 4

 

 

Financial Highlights

 

Owl Rock Capital Corporation

Consolidated Financial Highlights

(Amounts in thousands, except per share amounts)

(Unaudited)

 

 

 

For the three months ended

 

 

 

September 30, 2019

 

June 30, 2019

 

September 30, 2018

 

Investments at Fair Value

 

$

8,270,254

 

$

7,240,755

 

$

4,692,912

 

Total Assets

 

$

8,568,677

 

$

7,547,803

 

$

4,875,898

 

Net Asset Value Per Share

 

$

15.22

 

$

15.28

 

$

15.27

 

 

 

 

 

 

 

 

 

Investment Income

 

$

188,154

 

$

176,135

 

$

110,485

 

Net Investment Income

 

$

137,906

 

$

119,622

 

$

71,608

 

Net Income

 

$

118,652

 

$

124,670

 

$

72,326

 

 

 

 

 

 

 

 

 

Net Investment Income Per Share

 

$

0.36

 

$

0.42

 

$

0.44

 

Net Realized and Unrealized Gains (and Losses) Per Share

 

$

(0.05

)

$

0.02

 

$

0.00

 

Net Income Per Share

 

$

0.31

 

$

0.44

 

$

0.44

 

Distributions Declared from Net Investment Income

 

$

0.33

 

$

0.44

 

$

0.39

 

 

 

 

 

 

 

 

 

Weighted Average Yield of Debt and Income Producing Securities at Fair Value

 

9.0

%

9.1

%

9.4

%

Weighted Average Yield of Debt and Income Producing Securities at Amortized Cost

 

8.9

%

9.1

%

9.4

%

Percentage of Debt Investment Commitments at Floating Rates

 

100.0

%

99.7

%

100.0

%

 

 

 

 

 

www.OwlRockCapitalCorporation.com

NYSE: ORCC | 5

 

Consolidated Statements of Assets and Liabilities

 

Owl Rock Capital Corporation

Consolidated Statements of Assets and Liabilities

(Amounts in thousands, except share and per share amounts)

 

 

 

September 30,

 

December 31,

 

 

 

2019 (Unaudited)

 

2018

 

Assets

 

 

 

 

 

Investments at fair value

 

 

 

 

 

Non-controlled, non-affiliated investments (amortized cost of $8,204,082 and $5,720,295, respectively)

 

$

8,178,157

 

$

5,697,447

 

Controlled, affiliated investments (amortized cost of $93,267 and $91,138, respectively)

 

92,097

 

86,622

 

Total investments at fair value (amortized cost of $8,297,349 and $5,811,433, respectively)

 

8,270,254

 

5,784,069

 

Cash (restricted cash of $12,969 and $6,013, respectively)

 

197,618

 

127,603

 

Interest receivable

 

55,534

 

29,680

 

Receivable for investments sold

 

23,261

 

—

 

Receivable from a controlled affiliate

 

2,290

 

8,100

 

Prepaid expenses and other assets

 

19,710

 

1,590

 

Total Assets

 

$

8,568,667

 

$

5,951,042

 

Liabilities

 

 

 

 

 

Debt (net of unamortized debt issuance costs of $38,176 and $22,335, respectively)

 

$

2,459,023

 

$

2,567,717

 

Distribution payable

 

128,421

 

78,350

 

Management fee payable

 

14,760

 

14,049

 

Payables to affiliates

 

4,657

 

2,847

 

Payable for investments purchased

 

1,627

 

3,180

 

Accrued expenses and other liabilities

 

35,554

 

20,054

 

Total Liabilities

 

2,644,042

 

2,686,197

 

Commitments and contingencies

 

 

 

 

 

Net Assets

 

 

 

 

 

Common shares $0.01 par value, 500,000,000 shares authorized; 389,155,516 and 216,204,837 shares issued and outstanding, respectively

 

3,892

 

2,162

 

Additional paid-in-capital

 

5,907,924

 

3,271,162

 

Total distributable earnings (losses)

 

12,809

 

(8,479

)

Total Net Assets

 

5,924,625

 

3,264,845

 

Total Liabilities and Net Assets

 

$

8,568,667

 

$

5,951,042

 

Net Asset Value Per Share

 

$

15.22

 

$

15.10

 

 

 

www.OwlRockCapitalCorporation.com

NYSE: ORCC | 6

 

Consolidated Statements of Operations

 

Owl Rock Capital Corporation

Consolidated Statement of Operations

(Amounts in thousands, except share and per share amounts)

(Unaudited)

 

 

 

For the Three Months Ended

 

For the Nine Months Ended

 

 

 

September 30,

 

September 30,

 

 

 

2019

 

2018

 

2019

 

2018

 

Investment Income

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

Interest income

 

$

180,944

 

$

104,868

 

$

498,747

 

$

246,064

 

Other income

 

4,921

 

2,164

 

9,447

 

6,770

 

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

 

185,865

 

107,032

 

508,194

 

252,834

 

Investment income from controlled, affiliated investments:

 

 

 

 

 

 

 

 

 

Dividend income

 

2,289

 

2,226

 

7,570

 

5,149

 

Other income

 

—

 

1,227

 

—

 

4,046

 

Total investment income from controlled, affiliated investments

 

2,289

 

3,453

 

7,570

 

9,195

 

Total Investment Income

 

188,154

 

110,485

 

515,764

 

262,029

 

Expenses

 

 

 

 

 

 

 

 

 

Interest expense

 

29,434

 

21,386

 

101,021

 

50,545

 

Management fee

 

26,793

 

13,323

 

57,434

 

38,100

 

Performance based incentive fees

 

19,674

 

—

 

19,674

 

—

 

Professional fees

 

2,886

 

2,524

 

7,361

 

5,567

 

Directors’ fees

 

169

 

138

 

445

 

404

 

Other general and administrative

 

2,697

 

1,274

 

6,248

 

3,973

 

Total Operating Expenses

 

81,653

 

38,645

 

192,183

 

98,589

 

Management and incentive fees waived

 

(31,707

)

—

 

(31,707

)

—

 

Net Operating Expenses

 

49,946

 

38,645

 

160,476

 

98,589

 

Net Investment Income (Loss) Before Taxes

 

138,208

 

71,840

 

355,288

 

163,440

 

Excise tax expense (benefit)

 

302

 

232

 

1,754

 

815

 

Net Investment Income (Loss) After Taxes

 

$

137,906

 

$

71,608

 

$

353,534

 

$

162,625

 

Net Realized and Unrealized Gain (Loss)

 

 

 

 

 

 

 

 

 

Net change in unrealized gain (loss):

 

 

 

 

 

 

 

 

 

Non-controlled, non-affiliated investments

 

$

(20,846

)

$

(3,476

)

$

(376

)

$

5,470

 

Controlled affiliated investments

 

284

 

168

 

3,346

 

(1,013

)

Translation of assets and liabilities in foreign currencies

 

(146

)

(134

)

(168

)

(134

)

Total Net Change in Unrealized Gain (Loss)

 

(20,708

)

(3,442

)

2,802

 

4,323

 

Net realized gain (loss):

 

 

 

 

 

 

 

 

 

Non-controlled, non-affiliated investments

 

1,285

 

4,027

 

1,102

 

234

 

Foreign currency transactions

 

169

 

133

 

372

 

133

 

Total Net Realized Gain (Loss)

 

1,454

 

4,160

 

1,474

 

367

 

Total Net Realized and Unrealized Gain (Loss)

 

(19,254

)

718

 

4,276

 

4,690

 

Net Increase (Decrease) in Net Assets Resulting from Operations

 

$

118,652

 

$

72,326

 

$

357,810

 

$

167,315

 

Earnings Per Share - Basic and Diluted

 

$

0.31

 

$

0.44

 

$

1.18

 

$

1.29

 

Weighted Average Shares Outstanding - Basic and Diluted

 

384,846,445

 

163,401,485

 

302,373,486

 

129,234,396

 

 

 

www.OwlRockCapitalCorporation.com

NYSE: ORCC | 7

 

Portfolio and Investment Activity

 

Owl Rock Capital Corporation

Portfolio and Investment Activity

(Amounts in thousands)

(Unaudited)

 

 

 

For the Three Months Ended September 30,

 

 

 

2019

 

2018

 

New investment commitments

 

 

 

 

 

Gross originations

 

$

1,631,537

 

$

2,019,388

 

Less: Sell downs

 

(88,809

)

(303,690

)

Total new investment commitments

 

$

1,542,728

 

$

1,715,698

 

Principal amount of investments funded:

 

 

 

 

 

First-lien senior secured debt investments

 

$

845,282

 

$

1,160,059

 

Second-lien senior secured debt investments

 

443,270

 

311,137

 

Unsecured debt investments

 

—

 

—

 

Equity investments

 

—

 

—

 

Investment funds and vehicles

 

1,500

 

9,629

 

Total principal amount of investments funded

 

$

1,290,052

 

$

1,480,825

 

Principal amount of investments sold or repaid:

 

 

 

 

 

First-lien senior secured debt investments

 

$

(140,281

)

$

(97,259

)

Second-lien senior secured debt investments

 

(52,000

)

(145,350

)

Unsecured debt investments

 

(23,000

)

—

 

Equity investments

 

—

 

(2,760

)

Investment funds and vehicles

 

—

 

—

 

Total principal amount of investments sold or repaid

 

$

(215,281

)

$

(245,369

)

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

 

10

 

17

 

Average new investment commitment amount

 

$

129,504

 

$

93,492

 

Weighted average term for new investment commitments (in years)

 

6.7

 

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 investment commitments (2)

 

8.7

%

8.1

%

Weighted average spread over LIBOR of new floating rate investment commitments

 

6.6

%

5.7

%

 

(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 2.09% and 2.40% as of September 30, 2019 and 2018, respectively.

 

 

www.OwlRockCapitalCorporation.com

NYSE: ORCC | 8

 

 

About Owl Rock Capital Corporation

 

Owl Rock Capital Corporation (ORCC) is a specialty finance company focused on lending to U.S. middle-market companies. As of September 30, 2019 ORCC had investments in 96 portfolio companies with an aggregate fair value of $8.3 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 affiliate of Owl Rock Capital Partners. Owl Rock Capital Partners, together with its subsidiaries, is a New York based direct lending platform with approximately $14.6 billion of assets under management as of September 30, 2019.

 

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 Contact

 

Investor Contact:

Investor Relations / Dana Sclafani

(212) 651-4705

ORCCIR@owlrock.com

 

Media Contact:

Sard Verbinnen & Co

Margaret Popper / Brandon Messina / Hayley Cook

(212) 687-8080

 

 

 

www.OwlRockCapitalCorporation.com

NYSE: ORCC | 9