PR Newswire | Aug 4, 2021 05:27PM EDT

of $0.30 and NAV Per Share of $14.90

08/04 16:26 CDT

Owl Rock Capital Corp. Reports Second Quarter Net Investment Income Per Share of $0.30 and NAV Per Share of $14.90 NEW YORK, Aug. 4, 2021

NEW YORK, Aug. 4, 2021 /PRNewswire/ -- Owl Rock Capital Corporation (NYSE: ORCC, or the "Company") today reported net investment income of $119.1 million, or $0.30 per share, and net income of $150.2 million, or $0.38 per share, for the second quarter ended June 30, 2021. Reported net asset value per share was $14.90 at June 30, 2021 as compared to $14.82 at March 31, 2021.

Craig W. Packer, Chief Executive Officer of Owl Rock Capital Corporation commented, "We are extremely pleased to deliver on a number of the objectives we have discussed in prior quarters. We are now well within our target leverage range and continue to grow the portfolio, and our earnings benefited from an increase in prepayment-related income. This quarter was also our third most active quarter of originations since inception, underscoring the strength of our platform."

The Company's Board of Directors has declared a third quarter 2021 dividend of $0.31 per share for stockholders of record as of September 30, 2021, payable on or before November 15, 2021.

PORTFOLIO AND INVESTING ACTIVITY

For the three months ended June 30, 2021, new investment commitments totaled $1,578.1 million across 16 new portfolio companies and 12 existing portfolio companies. This compares to $863.5 million for the three months ended March 31, 2021 across 8 new portfolio companies and 11 existing portfolio companies.

For the three months ended June 30, 2021, the principal amount of new investments funded was $1,405.6 million. For this period, the Company had $742.7 million aggregate principal amount in exits and repayments.

For the three months ended March 31, 2021, the principal amount of new investments funded was $684.4 million. For this period, the Company had $512.2 million aggregate principal amount in exits and repayments.

As of June 30, 2021 and March 31, 2021, the Company had investments in 129 and 120 portfolio companies with an aggregate fair value of $11.9 billion and $11.2 billion, respectively. As of June 30, 2021, the average investment size in each portfolio company was $92.3 million based on fair value.

As of June 30, 2021, based on fair value, our portfolio consisted of 76.2% first lien senior secured debt investments, 16.5% second lien senior secured debt investments, 1.6% unsecured notes, 1.5% preferred equity investments, 2.8% common equity investments and 1.4% investment funds and vehicles.

As of March 31, 2021, based on fair value, our portfolio consisted of 77.8% first lien senior secured debt investments, 16.0% second lien senior secured debt investments, 1.7% unsecured notes, 3.5% equity investments(1) and 1.0% investment funds and vehicles.

As of June 30, 2021 and March 31, 2021, based on fair value, approximately 92.7% and 93.8% of the portfolio was invested in secured debt, respectively. As of June 30, 2021, 99.9% of our debt investments based on fair value in our portfolio were at floating rates.

As of June 30, 2021 and March 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 8.3% 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) remained at 8.2%.

As of June 30, 2021, 2 investments with an aggregate fair value of $54.0 million were on non-accrual status, representing 0.5% of the total fair value of the portfolio.

(1) As of March 31, 2021, preferred equity investments and common equity investments were reported in aggregate as equity investments.

RESULTS OF OPERATIONS FOR THE QUARTER ENDED JUNE 30, 2021

Investment IncomeInvestment income increased to $249.0 million for the three months ended June 30, 2021 from $190.2 million for the three months ended June 30, 2020. In addition to the growth in the portfolio, the incremental increase in investment income compared to the same period in the prior year was primarily due to an increase in dividend income.

ExpensesTotal expenses, after the effect of management and incentive fee waivers, increased to $129.7 million for the three months ended June 30, 2021 from $61.7 million for the three months ended June 30, 2020, which was primarily due to expiration of the management and incentive fee waiver in October 2020 and an increase in management fees and interest expense. Management fees increased period over period due to an increase in assets. The increase in interest expense was primarily driven by an increase in average daily borrowings, offset by a decrease in the average interest rate period over period.

Liquidity and Capital ResourcesAs of June 30, 2021, we had $627.2 million in cash and restricted cash, $6.5 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 3.0% and 3.2% for the three months ended June 30, 2021 and March 31, 2021, respectively. Ending debt to equity was 1.00x and 0.92x during the three months ended June 30, 2021 and March 31, 2021, respectively.

COVID-19 DevelopmentsWe continue to assess the impact of COVID-19 on our portfolio companies. For additional information about the COVID-19 pandemic and its potential impact on our results of operations and financial condition, please refer to the "COVID-19 Developments" section and additional disclosure in our Form 10-Q for the quarter ended June 30, 2021.

Conference Call and Webcast Information

Conference Call Information:The conference call will be broadcast live on August 5, 2021 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. For a slide presentation that complements the earnings conference call, please visit the Events & Presentations page of the Investor Resources section of ORCC's website.

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

* Domestic: (866) 211-4123 * International: (647) 689-6612 * Conference ID: 5397663

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: (800) 585-8367 * International: (416) 621-4642 * Conference ID: 5397663

FINANCIAL HIGHLIGHTS

For the three months ended

($ in thousands except per share data) June 30, 2021 March 31, 2021 June 30, 2020

Investments at Fair Value $ 11,906,872 $ 11,240,472 $ 9,210,730

Total Assets $ 12,635,426 $ 11,588,242 $ 9,497,126

Net Asset Value Per Share $ 14.90 $ 14.82 $ 14.52

Investment Income $ 249,015 $ 221,573 $ 190,242

Net Investment Income $ 119,129 $ 102,655 $ 129,162

Net Income $ 150,180 $ 157,845 $ 303,619

Net Investment Income Per Share $ 0.30 $ 0.26 $ 0.34

Net Realized and Unrealized Gains (and Losses) $ 0.08 $ 0.13 $ 0.45Per Share

Net Income Per Share $ 0.38 $ 0.40 $ 0.79

Distributions Declared from Net Investment $ 0.31 $ 0.31 $ 0.39Income Per Share

Weighted Average Yield of Accruing Debt and 8.3 % 8.3 % 7.9 %Income Producing Securities at Fair Value

Weighted Average Yield of Accruing Debt and 8.2 % 8.2 % 7.7 %Income Producing Securities at Amortized Cost

Percentage of Debt Investment Commitments at 99.9 % 99.9 % 98.7 %Floating Rates

CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES

June 30,($ in thousands except per share data) 2021 December 31, 2020 (Unaudited)

Assets

Investments at fair value

Non-controlled, non-affiliated investments(amortized cost of $11,479,200 and $10,653,613, $ 11,512,119 $ 10,569,691respectively)

Controlled, affiliated investments (amortized 394,753 272,381cost of $398,095 and $275,105, respectively)

Total investments at fair value (amortized cost 11,906,872 10,842,072of $11,877,295 and $10,928,718, respectively)

Cash (restricted cash of $14,433 and $8,841, 615,461 347,917respectively)

Foreign cash (cost of $11,636 and $9,641, 11,783 9,994respectively)

Interest receivable 69,044 57,108

Receivable for investments sold - 6,316

Receivable from a controlled affiliate 3,974 2,347

Prepaid expenses and other assets 28,292 38,603

Total Assets $ 12,635,426 $ 11,304,357

Liabilities

Debt (net of unamortized debt issuance costs of $ 6,383,737 $ 5,292,722$106,743 and $91,085, respectively)

Distribution payable 121,587 152,087

Management fee payable 44,005 35,936

Incentive fee payable 25,270 19,070

Payables to affiliates 4,614 6,527

Payables for investments purchased 140,076 -

Accrued expenses and other liabilities 73,873 51,581

Total Liabilities 6,793,162 5,557,923

Commitments and contingencies

Net Assets

Common shares $0.01 par value, 500,000,000 sharesauthorized; 392,217,490 and 389,966,688 shares 3,922 3,900issued and outstanding, respectively

Additional paid-in-capital 5,971,684 5,940,979

Total distributable earnings (losses) (133,342) (198,445)

Total Net Assets 5,842,264 5,746,434

Total Liabilities and Net Assets $ 12,635,426 $ 11,304,357

Net Asset Value Per Share $ 14.90 $ 14.74

CONSOLIDATED STATEMENTS OF OPERATIONS

For the Three Months Ended For the Six Months Ended June 30, June 30,

($ in thousands except per share data) 2021 2020 2021 2020

Investment Income

Investment income from non-controlled, non-affiliatedinvestments:

Interest income $ 233,316 $ 183,246 $ 444,348 $ 381,639

Dividend Income 5,765 920 9,324 920

Other income 4,463 3,815 7,617 7,966

Total investment income from non-controlled, non-affiliated 243,544 187,981 461,289 390,525investments

Investment income from controlled, affiliated investments:

Interest income 1,338 - 2,641 -

Dividend income 3,973 2,261 6,341 4,449

Other Income 160 - 317 -

Total investment income from controlled, affiliated 5,471 2,261 9,299 4,449investments

Total Investment Income 249,015 190,242 470,588 394,974

Expenses

Interest expense 54,445 39,185 102,521 73,142

Management fee 44,007 34,602 86,117 68,392

Performance based incentive fees 25,270 22,603 47,045 48,198

Professional fees 3,349 3,300 7,117 6,452

Directors' fees 274 221 518 454

Other general and administrative 2,344 1,741 4,162 3,905

Total Operating Expenses 129,689 101,652 247,480 200,543

Management and incentive fees waived - (39,904) - (82,394)

Net Operating Expenses 129,689 61,748 247,480 118,149

Net Investment Income (Loss) Before Taxes 119,326 128,494 223,108 276,825

Income tax expense (benefit), including excise tax expense 197 (668) 1,324 1,407(benefit)

Net Investment Income (Loss) After Taxes $ 119,129 $ 129,162 $ 221,784 $ 275,418

Net Realized and Change in Unrealized Gain (Loss)

Net change in unrealized gain (loss):

Non-controlled, non-affiliated investments $ 62,407 $ 167,515 $ 119,486 $ (276,620)

Income tax (provision) benefit (1,589) - (4,222) -

Controlled affiliated investments (1,483) 6,748 (618) (8,151)

Translation of assets and liabilities in foreign currencies (488) 205 (2,920) 124

Total Net Change in Unrealized Gain (Loss) 58,847 174,468 111,726 (284,647)

Net realized gain (loss):

Non-controlled, non-affiliated investments (27,828) - (26,674) 348

Foreign currency transactions 32 (11) 1,189 (90)

Total Net Realized Gain (Loss) (27,796) (11) (25,485) 258

Total Net Realized and Change in Unrealized Gain (Loss) 31,051 174,457 86,241 (284,389)

Net Increase (Decrease) in Net Assets Resulting from $ 150,180 $ 303,619 $ 308,025 $ (8,971)Operations

Earnings Per Share - Basic and Diluted $ 0.38 $ 0.79 $ 0.79 $ (0.02)

Weighted Average Shares Outstanding - Basic and Diluted 391,832,048 385,469,952 391,475,389 389,455,832

PORTFOLIO AND INVESTMENT ACTIVITY

For the Three Months Ended June 30,

($ in thousands) 2021 2020^(3)

New investment commitments

Gross originations $ 1,623,008 401,202

Less: Sell downs (44,875) (58,500)

Total new investment commitments $ 1,578,133 $ 342,702

Principal amount of investments funded:

First-lien senior secured debt investments $ 816,633 $ 295,586

Second-lien senior secured debt investments 360,595 3,125

Unsecured debt investments - 9,300

Preferred equity investments 152,964 -

Common equity investments 15,182 -

Investment funds and vehicles 60,251 -

Total principal amount of investments funded $ 1,405,625 $ 308,011

Principal amount of investments sold or repaid:

First-lien senior secured debt investments $ (558,122) $ (123,519)

Second-lien senior secured debt investments (179,705) (42,000)

Unsecured debt investments - -

Preferred Equity investments - -

Common Equity investments (4,827) -

Investment funds and vehicles - -

Total principal amount of investments sold or repaid $ (742,654) $ (165,519)

Number of new investment commitments in new 16 3portfolio companies^(1)

Average new investment commitment amount 75,769 $ 95,456

Weighted average term for new debt investment 6.4 5.3commitments (in years)

Percentage of new debt investment commitments at 100.0 % 67.2 % floating rates

Percentage of new debt investment commitments at 0.0 % 32.8 % fixed rates

Weighted average interest rate of new debtinvestment 7.6 % 7.9 %

commitments^(2)

Weighted average spread over LIBOR of new floating 6.7 % 7.4 %rate debt investment commitments

(1) Number of new investment commitments represents commitments to a particular portfolio company.

Assumes each floating rate commitment is subject to the greater of the(2) interest rate floor (if applicable) or 3-month LIBOR, which was 0.15% and 0.30% as of June 30, 2021 and 2020, respectively.

(3) As of June 30, 2020, 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 June 30, 2021, ORCC had investments in 129 portfolio companies with an aggregate fair value of $11.9 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.

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 Sclafani212-651-4705orccir@blueowl.com

Media Contact:Prosek PartnersDavid Wells / Josh Clarksonpro-blueowl@prosek.com

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SOURCE Owl Rock Capital Corporation