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NEW YORK, Feb. 23, 2021 /PRNewswire/ -- Owl Rock Capital Corporation (NYSE: ORCC, or the "Company") today reported net investment income of $114.6 million, or $0.29 per share, and net income of $180.7 million, or $0.46 per share, for the fourth quarter ended December 31, 2020. Reported net asset value per share was $14.74 at December 31, 2020 as compared to $14.67 at September 30, 2020. The fee waiver put in place in conjunction with the Company's IPO expired on October 18, 2020 and as a result, the fourth quarter results reflect the impact of the full fee structure for the majority of the quarter.

Craig W. Packer, Chief Executive Officer of Owl Rock Capital Corporation commented, "We are very pleased with our origination activity this quarter, which allowed us to make significant progress towards our target leverage and a fully scaled portfolio. We believe our investment strategy of building a senior-oriented portfolio across a diversified set of high-quality, middle-market companies has borne strong results, with our third consecutive quarter of NAV growth and healthy credit performance over the course of a very challenging year."

The Company's Board of Directors has declared a first quarter 2021 dividend of $0.31 per share for stockholders of record as of March 31, 2021, payable on or before May 14, 2021.

The fourth quarter 2020 special dividend of $0.08 per share paid to shareholders of record as of December 31, 2020 was the final of six special dividends declared in conjunction with the Company's IPO in July 2019.

PORTFOLIO AND INVESTING ACTIVITY

For the full year ended December 31, 2020, new investment commitments totaled $3,444.8 million. This compares to $4,434.7 million for year ended December 31, 2019.

For the full year ended December 31, 2020, the principal amount of new investments funded was $2,845.5 million across 30 new portfolio companies and 43 existing portfolio companies. For this period, the Company had $1,151.9 million aggregate principal amount in exits and repayments.

For the full year ended December 31, 2019, the principal amount of new investments funded was $3,682.2 million across 38 new portfolio companies and 22 existing portfolio companies. For this period, the Company had $964.5 million aggregate principal amount in exits and repayments.

For the three months ended December 31, 2020, new investment commitments totaled $1,527.4 million. This compares to $1,032.7 million for the three months ended December 31, 2019.

For the three months ended December 31, 2020, the principal amount of new investments funded was $1,274.9 million across 12 new portfolio companies and 14 existing portfolio companies. For this period, the Company had $520.3 million aggregate principal amount in exits and repayments.

For the three months ended December 31, 2019, the principal amount of new investments funded was $795.5 million across 7 new portfolio companies and 6 existing portfolio companies. For this period, the Company had $269.4 million aggregate principal amount in exits and repayments.

As of December 31, 2020 and December 31, 2019, the Company had investments in 119 and 98 portfolio companies with an aggregate fair value of $10.8 billion and $8.8 billion, respectively. As of December 31, 2020, the average investment size in each portfolio company was $91.1 million based on fair value.

As of December 31, 2020, based on fair value, our portfolio consisted of 77.5% first lien senior secured debt investments, 18.5% second lien senior secured debt investments, 0.5% unsecured notes, 1.0% investment funds and vehicles, and 2.5% equity investments.

As of December 31, 2019, based on fair value, our portfolio consisted of 80.9% first lien senior secured debt investments, 18.0% second lien senior secured debt investments, 1.0% investment funds and vehicles, and 0.1% equity investments.

As of December 31, 2020 and December 31, 2019, approximately 96.0% and 98.9% of the portfolio was invested in secured debt, respectively. As of December 31, 2020, 99.9% of our debt investments based on fair value in our portfolio were at floating rates.

As of December 31, 2020 and December 31, 2019, 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) was 8.3% and 8.7%, respectively, 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 8.2% and 8.6%, respectively.

As of December 31, 2020, one investment with an aggregate fair value of $32.6 million was on non-accrual status, representing 0.3% of the total fair value of the portfolio. During the quarter ended December 31, 2020, the Company moved one investment that was on non-accrual last quarter back to accrual status following a restructuring; the Company also exited an investment that was previously on non-accrual and realized a full par recovery.

RESULTS OF OPERATIONS FOR THE FULL YEAR AND QUARTER ENDED DECEMBER 31, 2020

Investment Income

Investment income increased to $803.3 million for the full year ended December 31, 2020 from $718.0 million for the full year ended December 31, 2019. The increase was primarily due to an increase in our investment portfolio, partially offset by a decrease in our portfolio's weighted average yield period over period.

Investment income increased to $221.3 million for the three months ended December 31, 2020 from $202.3 million for the three months ended December 31, 2019. The increase was primarily due to an increase in our investment portfolio, partially offset by a decrease in our portfolio's weighted average yield period over period.

Expenses

Total expenses increased to $283.8 million for the full year ended December 31, 2020 from $217.1 million for the full year ended December 31, 2019, primarily due to an increase in interest expense and increase in gross management fees and incentive fees, coupled with the expiration of the management fee and incentive fee waivers. The increase in interest expense was primarily driven by an increase in average daily borrowings, partially offset by a decrease in the average interest rate period over period.

Total expenses increased to $106.7 million for the three months ended December 31, 2020 from $56.9 million for the three months ended December 31, 2019, primarily due to an increase in interest expense and increase in gross management fees and incentive fees, coupled with the expiration of the management fee and incentive fee waivers. The increase in interest expense was primarily driven by an increase in average daily borrowings, partially offset by a decrease in the average interest rate period over period.

Liquidity and Capital Resources

As of December 31, 2020, we had $5.4 billion in total principal value of debt outstanding and $2.1 billion of liquidity, including upsizes to our credit facilities subsequent to quarter-end. The Company's weighted average interest rate on debt outstanding was 3.2% and 4.6% for the three months ended December 31, 2020 and December 31, 2019, respectively. Ending debt to equity was 0.87x and 0.46x for the periods ended December 31, 2020 and December 31, 2019, respectively.

COVID-19 Developments

Through the year ended December 31, 2020, the Company's operating results were impacted by the economic and financial market conditions related to the COVID-19 pandemic. We 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-K for the year ended December 31, 2020.

CONFERENCE CALL AND WEBCAST INFORMATION

Conference Call Information:

The conference call will be broadcast live on February 24, 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.

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: 1859688

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: 1859688

 

FINANCIAL HIGHLIGHTS







For the three months ended



 ($ in thousands, except per share amounts)



December 31,

2020





September 30,

2020





December 31,

2019



Investments at Fair Value



$

10,842,072





$

9,918,302





$

8,799,225



Total Assets



$

11,304,357





$

10,234,261





$

9,203,619



Net Asset Value Per Share



$

14.74





$

14.67





$

15.24





























Investment Income



$

221,254





$

187,059





$

202,255



Net Investment Income



$

114,601





$

127,437





$

145,373



Net Income



$

180,664





$

216,047





$

140,192





























Net Investment Income Per Share



$

0.29





$

0.33





$

0.37



Net Realized and Unrealized Gains (and Losses)

Per Share



$

0.17





$

0.23





$

(0.01)



Net Income Per Share



$

0.46





$

0.56





$

0.36



Distributions Declared from Net Investment Income Per Share



$

0.39





$

0.39





$

0.35





























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





8.3

%





8.1

%





8.7

%

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





8.2

%





8.0

%





8.6

%

Percentage of Debt Investment Commitments at

Floating Rates





99.9

%





98.8

%





100.0

%

 

CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES



 ($ in thousands, except per share amounts)



December 31,

2020





December 31,

2019



Assets

















Investments at fair value

















Non-controlled, non-affiliated investments (amortized cost of $10,653,613 and $8,738,520, respectively)



$

10,569,691





$

8,709,700



Controlled, affiliated investments (amortized cost of $275,105 and $90,336, respectively)





272,381







89,525



Total investments at fair value (amortized cost of $10,928,718 and $8,828,856, respectively)





10,842,072







8,799,225



Cash (restricted cash of $8,841 and $7,587, respectively)





347,917







317,159



Foreign cash (cost of $9,641 and $0, respectively)





9,994









Interest receivable





57,108







57,632



Receivable for investments sold





6,316







9,250



Receivable from a controlled affiliate





2,347







2,475



Prepaid expenses and other assets





38,603







17,878



Total Assets



$

11,304,357





$

9,203,619



Liabilities

















Debt (net of unamortized debt issuance costs of $91,085 and $44,302, respectively)



$

5,292,722





$

3,038,232



Distribution payable





152,087







137,245



Management fee payable





35,936







16,256



Incentive fee payable





19,070









Payables to affiliates





6,527







5,775



Accrued expenses and other liabilities





51,581







28,828



Total Liabilities





5,557,923







3,226,336



Commitments and contingencies

















Net Assets

















Common shares $0.01 par value, 500,000,000 shares authorized; 389,966,688 and 392,129,619 shares issued and outstanding, respectively





3,900







3,921



Additional paid-in-capital





5,940,979







5,955,610



Total distributable earnings (losses)





(198,445)







17,752



Total Net Assets





5,746,434







5,977,283



Total Liabilities and Net Assets



$

11,304,357





$

9,203,619



Net Asset Value Per Share



$

14.74





$

15.24



 

CONSOLIDATED STATEMENTS OF OPERATIONS







For the Years Ended December 31,





 ($ in thousands, except per share amounts)



2020





2019





2018





Investment Income



























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



























Interest income



$

768,717





$

691,854





$

366,858





Dividend Income





10,409

















Other income





14,736







16,119







8,750





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





793,862







707,973







375,608





Investment income from controlled, affiliated investments:



























Interest income





327

















Dividend income





9,063







10,046







8,379





Other Income





35













4,871





Total investment income from controlled, affiliated investments





9,425







10,046







13,250





Total Investment Income





803,287







718,019







388,858





Expenses



























Interest expense





152,939







136,445







76,774





Management fee





144,448







89,947







52,148





Performance based incentive fees





93,892







45,114











Professional fees





14,654







10,029







7,823





Directors' fees





849







623







533





Other general and administrative





7,936







8,374







4,965





Total Operating Expenses





414,718







290,532







142,243





Management and incentive fees waived





(130,906)







(73,403)











Net Operating Expenses





283,812







217,129







142,243





Net Investment Income (Loss) Before Taxes





519,475







500,890







246,615





Income taxes, including excise tax expense (benefit)





2,019







1,984







1,093





Net Investment Income (Loss) After Taxes



$

517,456





$

498,906





$

245,522





Net Realized and Change in Unrealized Gain (Loss)



























Net change in unrealized gain (loss):



























Non-controlled, non-affiliated investments



$

(75,039)





$

(7,235)





$

(38,426)





Income tax (provision) benefit





(3,686)

















Controlled affiliated investments





(1,913)







3,705







(5,087)





Translation of assets and liabilities in foreign currencies





4,634







(222)







(133)





Total Net Change in Unrealized Gain (Loss)





(76,004)







(3,752)







(43,646)





Net realized gain (loss):



























Non-controlled, non-affiliated investments





(51,376)







2,633







234





Foreign currency transactions





(2,336)







214







133





Total Net Realized Gain (Loss)





(53,712)







2,847







367





Total Net Realized and Change in Unrealized Gain (Loss)





(129,716)







(905)







(43,279)





Net Increase (Decrease) in Net Assets Resulting from Operations



$

387,740





$

498,001





$

202,243





Earnings Per Share - Basic and Diluted



$

1.00





$

1.53





$

1.38





Weighted Average Shares Outstanding - Basic and Diluted





388,645,561







324,630,279







146,422,371





 

PORTFOLIO AND INVESTMENT ACTIVITY







For the Years Ended December 31,



($ in thousands)



2020





2019





2018



New investment commitments

























Gross originations



$

3,667,048







4,625,939







5,814,181



Less: Sell downs





(222,276)







(191,277)







(618,040)



Total new investment commitments



$

3,444,772





$

4,434,662





$

5,196,141



Principal amount of investments funded:

























First-lien senior secured debt investments



$

2,132,417





$

3,083,777







3,388,527



Second-lien senior secured debt investments





518,480







596,421







799,701



Unsecured debt investments





55,873













23,000



Equity investments





119,780







1,991







11,215



Investment funds and vehicles





18,950













26,110



Total principal amount of investments funded



$

2,845,500





$

3,682,189





$

4,248,553



Principal amount of investments sold or repaid:

























First-lien senior secured debt investments



$

(1,060,352)





$

(820,602)





$

(536,715)



Second-lien senior secured debt investments





(90,686)







(116,700)







(341,600)



Unsecured debt investments











(23,000)









Equity investments





(867)







(1,991)







(2,760)



Investment funds and vehicles











(2,250)









Total principal amount of investments sold or repaid



$

(1,151,905)





$

(964,543)





$

(881,075)



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



30





38





44



Average new investment commitment amount



$

84,891





$

107,981





$

105,689



Weighted average term for new investment commitments (in years)





5.9







6.3







6.2



Percentage of new debt investment commitments at floating rates





96.3

%





100.0

%





99.6

%

Percentage of new debt investment commitments at fixed rates





3.7

%





0.0

%





0.4

%

Weighted average interest rate of new investment commitments(2)





7.8

%





8.0

%





8.8

%

Weighted average spread over LIBOR of new floating rate investment commitments





6.9

%





6.1

%





6.0

%













(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 0.24%, 1.91% and 2.81% as of December 31, 2020, 2019 and 2018, respectively.

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 December 31, 2020, ORCC had investments in 119 portfolio companies with an aggregate fair value of $10.8 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 affiliate of Owl Rock Capital Partners. Owl Rock Capital Partners, together with its subsidiaries, is a New York based direct lending platform with approximately $27.1 billion of assets under management as of December 31, 2020.

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

212-651-4705

orccir@owlrock.com

Media Contact:

Prosek Partners

David Wells / Kelly Smith Aceituno / Josh Clarkson

pro-owlrock@prosek.com

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SOURCE Owl Rock Capital Corporation

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