Blue Owl Capital Corporation: Wider credit spreads drive weak print; NAV -2.7%, dividend reset

Research evidence excerpt

Blue Owl Capital Corporation: Wider credit spreads drive weak print; NAV -2.7%, dividend reset

iQprofile SM Blue Owl Capital Corporation

Income Statement Data (Dec) Company Sector

(US$ Millions) 2024A 2025A 2026E 2027E 2028E Financial Services-Consumer/Commercial

Net Interest Income 1,132 1,256 1,030 1,030 1,022

% change -1.2% 10.9% -17.9% 0% -0.7%

Net Fee Income NA NA NA NA NA Company Description Securities Gains / (Losses) NA NA NA NA NA

Total Operating Income 1,132 1,256 1,030 1,030 1,022 OBDC, which commenced investing in 2016, is a specialty

Operating Expenses (391) (455) (400) (400) (400) finance company, regulated as a BDC under the Investment

% change -0.4% 16.5% -12.2% 0.1% -0.1% Company Act of 1940, as amended, that invests in debt and

Provisions Expense NA NA NA NA NA equity of middle market commercial enterprises. OBDC's

% change NA NA NA NA NA

objective is to generate current income with the potential

Operating Pre-Tax Income 741 800 631 630 623

Operating Net Income to Comm S/Hold. 741 764 627 628 623 for capital appreciation for distribution to shareholders as

GAAP Net Income 595 627 441 630 623 dividends. The company principally underwrites floating-

rate credit structures at the upper end of the capital

Balance Sheet Data (Dec) structure.

(US$ Millions) 2024A 2025A 2026E 2027E 2028E

Total Assets 13,866 17,186 15,769 15,769 15,769

Investment Rationale Average Interest Earning Assets NA NA NA NA NA

Total Gross Customer Loans NA NA NA NA NA We believe that OBDC is well positioned to gain share due

% change NA NA NA NA NA to (1) a proprietary origination platform, (2) late-cycle

Total Customer Deposits NA NA NA NA NA oriented portfolio, (3) yield-enhancing strategic

% change NA NA NA NA NA partnerships, (4) low leverage and flexible capital structure.