Exhibit 99.1

 

Owl Rock Capital Corp. Reports First Quarter Net Investment Income Per Share of $0.31 and
NAV Per Share of $14.88

 

NEW YORK — May 4, 2022 — Owl Rock Capital Corporation (NYSE: ORCC, or the “Company”) today reported net investment income of $122.4 million, or $0.31 per share, and net income of $44.0 million, or $0.11 per share, for the first quarter ended March 31, 2022. Reported net asset value per share was $14.88 at March 31, 2022 as compared to $15.08 at December 31, 2021.

 

Craig W. Packer, Chief Executive Officer of Owl Rock Capital Corporation commented, “We are very pleased with our performance this quarter and how our portfolio is positioned for the evolving economic environment. Our credit performance remains exceptional with one of the lowest levels of non-accruals in the BDC sector and our defensive positioning is designed to generate healthy returns through the entire market cycle. Further, with almost all of our portfolio held in floating rate assets, we expect to see upside in the second half of the year from a rising interest rate environment.”

 

The Company’s Board of Directors has declared a second quarter 2022 dividend of $0.31 per share for stockholders of record as of June 30, 2022, payable on or before August 15, 2022.

 

PORTFOLIO AND INVESTING ACTIVITY

 

For the three months ended March 31, 2022, new investment commitments totaled $530.4 million across 17 new portfolio companies and 4 existing portfolio companies. This compares to $1,589.2 million for the three months ended December 31, 2021 across 22 new portfolio companies and 9 existing portfolio companies.

 

For the three months ended March 31, 2022, the principal amount of new investments funded was $347.9 million. For this period, the Company had $374.8 million aggregate principal amount in exits and repayments.

 

For the three months ended December 31, 2021, the principal amount of new investments funded was $1,459.8 million. For this period, the Company had $909.6 million aggregate principal amount in exits and repayments.

 

As of March 31, 2022 and December 31, 2021, the Company had investments in 157 and 143 portfolio companies with an aggregate fair value of $12.8 billion and $12.7 billion, respectively. As of March 31, 2022, the average investment size in each portfolio company was $81.3 million based on fair value.

 

As of March 31, 2022, based on fair value, our portfolio consisted of 74.0% first lien senior secured debt investments, 14.7% second lien senior secured debt investments, 2.1% unsecured debt investments, 2.3% investment funds and vehicles, 1.9% preferred equity investments, and 5.0% common equity investments.

 

As of December 31, 2021, based on fair value, our portfolio consisted of 74.9% first lien senior secured debt investments, 15.1% second lien senior secured debt investments, 1.5% unsecured debt investments, 1.9% investment funds and vehicles, 2.1% preferred equity investments, and 4.5% common equity investments.

 

As of March 31, 2022 and December 31, 2021, approximately 88.7% and 90.0% of the portfolio was invested in secured debt, respectively. As of March 31, 2022, 98.8% of our debt investments based on fair value in our portfolio were at floating rates.

 

As of March 31, 2022 and December 31, 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) remained at 7.9% 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) was 8.0% and 7.9%, respectively.

 

As of March 31, 2022, 1 portfolio company with an aggregate fair value of $13.6 million was on non-accrual status, representing 0.1% of the total fair value of the debt portfolio.


RESULTS OF OPERATIONS FOR THE QUARTER ENDED MARCH 31, 2022

 

Investment Income

Investment income increased to $264.2 million for the three months ended March 31, 2022 from $221.6 million for the three months ended March 31, 2021. In addition to the growth in the portfolio, the incremental increase in investment income was primarily due to an increase in dividend income. Included in interest income are other fees such as prepayment fees and accelerated amortization of upfront fees from unscheduled paydowns. Period over period, income generated from these fees slightly decreased. Other income increased period-over-period due to an increase in incremental fee income, which are fees that are generally available to us as a result of closing investments and generally paid at the time of closing. We expect that investment income will vary based on a variety of factors including the pace of our originations and repayments.

 

Expenses

Total expenses increased to $141.0 million for the three months ended March 31, 2022 from $117.8 million for the three months ended March 31, 2021, which was primarily due to an increase in interest expense and management and incentive fees. The increase in interest expense was primarily driven by an increase in the average daily borrowings partially offset by a decrease in the average interest rate. Management and incentive fees increased primarily due to an increase in our investment portfolio.

 

Liquidity and Capital Resources

As of March 31, 2022, we had $0.3 billion in cash and restricted cash, $7.2 billion in total principal value of debt outstanding, and $1.4 billion of undrawn capacity on our credit facilities. The Company’s weighted average interest rate on debt outstanding remained at 2.9% for the three months ended March 31, 2022 and December 31, 2021. Ending net debt to equity was 1.17x and 1.13x as of March 31, 2022 and December 31, 2021, respectively.

 

Conference Call and Webcast Information

 

Conference Call Information:

The conference call will be broadcast live on May 5, 2022 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.

 

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 amounts)

 

March 31, 2022

 

 

December 31, 2021

 

 

March 31, 2021

 

Investments at Fair Value

 

$

12,756,323

 

 

$

12,741,640

 

 

$

11,240,472

 

Total Assets

 

$

13,203,697

 

 

$

13,298,170

 

 

$

11,588,242

 

Net Asset Value Per Share

 

$

14.88

 

 

$

15.08

 

 

$

14.82

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment Income

 

$

264,159

 

 

$

281,624

 

 

$

221,573

 

Net Investment Income

 

$

122,356

 

 

$

137,854

 

 

$

102,655

 

Net Income

 

$

43,986

 

 

$

174,006

 

 

$

157,845

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Investment Income Per Share

 

$

0.31

 

 

$

0.35

 

 

$

0.26

 

Net Realized and Unrealized Gains (and Losses) Per Share

 

$

(0.20

)

 

$

0.09

 

 

$

0.13

 

Net Income Per Share

 

$

0.11

 

 

$

0.44

 

 

$

0.40

 

Distributions Declared from Net Investment Income Per Share

 

$

0.31

 

 

$

0.31

 

 

$

0.31

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

7.9

%

 

 

7.9

%

 

 

8.3

%

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

 

 

8.0

%

 

 

7.9

%

 

 

8.2

%

Percentage of Debt Investment Commitments at Floating Rates

 

 

98.8

%

 

 

98.9

%

 

 

99.9

%


 

consolidated statements of ASSETS and LIABILITIES

($ in thousands, except per share amounts)

 

March 31, 2022

(Unaudited)

 

 

December 31, 2021

 

Assets

 

 

 

 

 

 

 

 

Investments at fair value

 

 

 

 

 

 

 

 

Non-controlled, non-affiliated investments (amortized cost of $12,056,205 and $12,073,126, respectively)

 

$

12,028,349

 

 

$

12,124,860

 

Controlled, affiliated investments (amortized cost of $698,379 and $575,427, respectively)

 

 

727,974

 

 

 

616,780

 

Total investments at fair value (amortized cost of $12,754,584 and $12,648,553, respectively)

 

 

12,756,323

 

 

 

12,741,640

 

Cash (restricted cash of $57,497 and $21,481, respectively)

 

 

326,378

 

 

 

431,442

 

Foreign cash (cost of $6,369 and $16,096, respectively)

 

 

6,387

 

 

 

15,703

 

Interest receivable

 

 

89,921

 

 

 

81,716

 

Receivable from a controlled affiliate

 

 

15,903

 

 

 

3,953

 

Prepaid expenses and other assets

 

 

8,785

 

 

 

23,716

 

Total Assets

 

$

13,203,697

 

 

$

13,298,170

 

Liabilities

 

 

 

 

 

 

 

 

Debt (net of unamortized debt issuance costs of $106,698 and $110,239, respectively)

 

$

7,034,218

 

 

$

7,079,326

 

Distribution payable

 

 

122,320

 

 

 

122,068

 

Management fee payable

 

 

47,413

 

 

 

46,770

 

Incentive fee payable

 

 

25,954

 

 

 

29,242

 

Payables to affiliates

 

 

2,843

 

 

 

5,802

 

Payables for investments purchased

 

 

867

 

 

 

 

Accrued expenses and other liabilities

 

 

98,588

 

 

 

77,085

 

Total Liabilities

 

 

7,332,203

 

 

 

7,360,293

 

Commitments and contingencies

 

 

 

 

 

 

 

 

Net Assets

 

 

 

 

 

 

 

 

Common shares $0.01 par value, 500,000,000 shares authorized; 394,580,939 and 393,766,855 shares issued and outstanding, respectively

 

 

3,946

 

 

 

3,938

 

Additional paid-in-capital

 

 

6,002,303

 

 

 

5,990,360

 

Total distributable earnings (losses)

 

 

(134,755

)

 

 

(56,421

)

Total Net Assets

 

 

5,871,494

 

 

 

5,937,877

 

Total Liabilities and Net Assets

 

$

13,203,697

 

 

$

13,298,170

 

Net Asset Value Per Share

 

$

14.88

 

 

$

15.08

 


 

consolidated statements of operations

 

 

For the Three Months Ended March 31,

 

($ in thousands, except per share amounts)

 

2022

 

 

2021

 

Investment Income

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

Interest income

 

$

208,599

 

 

$

200,305

 

Payment-in-kind interest income

 

 

22,411

 

 

 

10,727

 

Dividend income

 

 

11,728

 

 

 

3,559

 

Other income

 

 

3,848

 

 

 

3,154

 

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

 

 

246,586

 

 

 

217,745

 

Investment income from controlled, affiliated investments:

 

 

 

 

 

 

 

 

Interest income

 

 

1,773

 

 

 

1,303

 

Dividend income

 

 

15,638

 

 

 

2,368

 

Other Income

 

 

162

 

 

 

157

 

Total investment income from controlled, affiliated investments

 

 

17,573

 

 

 

3,828

 

Total Investment Income

 

 

264,159

 

 

 

221,573

 

Expenses

 

 

 

 

 

 

 

 

Interest expense

 

 

61,378

 

 

 

48,076

 

Management fee

 

 

47,413

 

 

 

42,110

 

Performance based incentive fees

 

 

25,954

 

 

 

21,775

 

Professional fees

 

 

3,828

 

 

 

3,768

 

Directors' fees

 

 

290

 

 

 

244

 

Other general and administrative

 

 

2,132

 

 

 

1,818

 

Total Operating Expenses

 

 

140,995

 

 

 

117,791

 

Net Investment Income (Loss) Before Taxes

 

 

123,164

 

 

 

103,782

 

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

 

 

808

 

 

 

1,127

 

Net Investment Income (Loss) After Taxes

 

$

122,356

 

 

$

102,655

 

Net Realized and Change in Unrealized Gain (Loss)

 

 

 

 

 

 

 

 

Net change in unrealized gain (loss):

 

 

 

 

 

 

 

 

Non-controlled, non-affiliated investments

 

$

(69,948

)

 

$

57,079

 

Income tax (provision) benefit

 

 

 

 

 

(2,633

)

Controlled affiliated investments

 

 

(11,758

)

 

 

865

 

Translation of assets and liabilities in foreign currencies

 

 

(481

)

 

 

(2,432

)

Total Net Change in Unrealized Gain (Loss)

 

 

(82,187

)

 

 

52,879

 

Net realized gain (loss):

 

 

 

 

 

 

 

 

Non-controlled, non-affiliated investments

 

 

4,702

 

 

 

1,154

 

Foreign currency transactions

 

 

(885

)

 

 

1,157

 

Total Net Realized Gain (Loss)

 

 

3,817

 

 

 

2,311

 

Total Net Realized and Change in Unrealized Gain (Loss)

 

 

(78,370

)

 

 

55,190

 

Net Increase (Decrease) in Net Assets Resulting from Operations

 

$

43,986

 

 

$

157,845

 

Earnings Per Share - Basic and Diluted

 

$

0.11

 

 

$

0.40

 

Weighted Average Shares Outstanding - Basic and Diluted

 

 

394,309,578

 

 

 

391,114,767

 


 

portfolio and investment activity

 

 

For the Three Months Ended March 31,

 

($ in thousands)

 

2022

 

 

2021

 

New investment commitments

 

 

 

 

 

 

 

 

Gross originations

 

$

533,848

 

 

 

919,685

 

Less: Sell downs

 

 

(3,409

)

 

 

(56,145

)

Total new investment commitments

 

$

530,439

 

 

$

863,540

 

Principal amount of investments funded:

 

 

 

 

 

 

 

 

First-lien senior secured debt investments

 

$

223,302

 

 

$

529,122

 

Second-lien senior secured debt investments

 

 

1,000

 

 

 

12,400

 

Unsecured debt investments

 

 

69,989

 

 

 

132,288

 

Preferred equity investments(3)

 

 

7,000

 

 

 

1,000

 

Common equity investments(3)

 

 

1,968

 

 

 

7,567

 

Investment funds and vehicles

 

 

44,625

 

 

 

2,000

 

Total principal amount of investments funded

 

$

347,884

 

 

$

684,377

 

Principal amount of investments sold or repaid:

 

 

 

 

 

 

 

 

First-lien senior secured debt investments

 

$

(326,994

)

 

$

(287,315

)

Second-lien senior secured debt investments

 

 

(25,000

)

 

 

(224,851

)

Unsecured debt investments

 

 

 

 

 

 

Preferred equity investments(3)

 

 

(22,843

)

 

 

 

Common equity investments(3)

 

 

 

 

 

 

Investment funds and vehicles

 

 

 

 

 

 

Total principal amount of investments sold or repaid

 

$

(374,837

)

 

$

(512,166

)

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

 

 

17

 

 

8

 

Average new investment commitment amount

 

 

21,952

 

 

$

78,952

 

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

 

 

5.1

 

 

 

5.8

 

Percentage of new debt investment commitments at

   floating rates

 

 

97.3

%

 

 

100.0

%

Percentage of new debt investment commitments at

   fixed rates

 

 

2.7

%

 

 

0.0

%

Weighted average interest rate of new debt investment

   commitments(2)

 

 

7.4

%

 

 

7.3

%

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

 

 

6.5

%

 

 

6.4

%

________________

 

(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 0.96% and 0.19% as of March 31, 2022 and 2021, respectively.

 

(3)

As of March 31, 2021, 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 March 31, 2022, ORCC had investments in 157 portfolio companies with an aggregate fair value of $12.8 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. Owl Rock, together with its subsidiaries, is a New York based direct lending platform.

 

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

212-419-3000

owlrockir@blueowl.com

 

Media Contact:

Prosek Partners

David Wells / Josh Clarkson

pro-owlrock@prosek.com