Blue Owl Capital Corporation Reports Full Year Results and Fourth Quarter Net Investment Income Per Share of $0.51 and NAV Per Share of $15.45; Increases Quarterly Dividend
HIGHLIGHTS FOR FULL YEAR AND QUARTER ENDED
- Fourth quarter net investment income ("NII") per share of
$0.51 , which represents the fourth consecutive quarter of record NII for the Company - As a result, Board declared a fourth quarter supplemental dividend of
$0.08 per share - Total dividends for the fourth quarter were
$0.43 per share, which represents an approximately 11% annualized yield based on fourth quarter net asset value ("NAV") per share - Total dividends of
$1.59 per share paid to shareholders in 2023, an increase of approximately 25% from the prior year - Delivered a total return of greater than 40%1 for 2023
- For the first quarter 2024, increased quarterly dividend by
$0.02 to$0.37 per share, marking the third dividend increase since the fourth quarter 2022 - NAV per share increased to
$15.45 compared to$15.40 as ofSeptember 30, 2023
"OBDC achieved record NII for the fourth consecutive quarter and its highest NAV per share since inception in the fourth quarter," commented
Dividend Declarations
The Company's Board of Directors has declared a first quarter 2024 dividend of
PORTFOLIO AND INVESTING ACTIVITY
Full Year
For the full year ended
This compares to
For the full year ended
For the full year ended
Fourth Quarter
For the three months ended
This compares to
For the three months ended
For the three months ended
For the three months ended
As of
As of
As of
As of
As of
As of
RESULTS OF OPERATIONS FOR THE FULL YEAR AND QUARTER ENDED
Investment Income
Investment income increased to
Investment income increased to
Expenses
Total expenses increased to
Total expenses increased to
Liquidity and Capital Resources
As of
CONFERENCE CALL AND WEBCAST INFORMATION
Conference Call Information:
The conference call will be broadcast live on
Participants are also invited to access the conference call by dialing one of the following numbers:
- Domestic: (877) 737-7048
- International: +1 (201) 689-8523
All callers will need to reference "
Replay Information:
An archived replay will be available for 14 days via a webcast link located on the Events section of OBDC's website, and via the dial-in numbers listed below:
- Domestic: (877) 660-6853
- International: +1 (201) 612-7415
- Conference ID: 13743048
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(1) |
Total return calculated using LTM dividends paid and stock appreciation divided by net asset value. |
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(2) |
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(3) |
This was disclosed as "Investment funds and vehicles" prior to Q2 2023. |
ABOUT
Blue
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 OBDC, 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 OBDC'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 OBDC's filings with the
INVESTOR CONTACTS
Investor Contact:
212-419-3000
credit-ir@blueowl.com
Media Contact:
pro-blueowl@prosek.com
FINANCIAL HIGHLIGHTS |
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For the three months ended |
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($ in thousands, except per share amounts) |
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Investments at Fair Value |
$ 12,713,348 |
$ 12,896,158 |
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$ 13,010,345 |
Total Assets |
$ 13,511,396 |
$ 13,461,820 |
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$ 13,584,853 |
Net Asset Value Per Share |
$ 15.45 |
$ 15.40 |
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$ 14.99 |
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Investment Income |
$ 411,227 |
$ 399,022 |
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$ 350,506 |
Net Investment Income |
$ 199,021 |
$ 190,053 |
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$ 162,464 |
Net Income |
$ 188,969 |
$ 206,938 |
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$ 191,888 |
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Net Investment Income Per Share |
$ 0.51 |
$ 0.49 |
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$ 0.41 |
Net Realized and Unrealized Gains (and Losses) Per Share |
$ (0.03) |
$ 0.04 |
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$ 0.07 |
Net Income Per Share |
$ 0.48 |
$ 0.53 |
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$ 0.49 |
Distributions Declared from Net Investment Income Per Share |
$ 0.35 |
$ 0.33 |
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$ 0.33 |
Supplemental Distributions Declared from Net Investment Income Per Share |
$ 0.08 |
$ 0.08 |
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$ 0.04 |
Weighted Average Yield of |
12.4 % |
12.3 % |
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11.5 % |
Weighted Average Yield of |
12.5 % |
12.4 % |
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11.5 % |
Percentage of Debt Investment Commitments at Floating Rates |
97.4 % |
97.7 % |
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98.3 % |
CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES (Amounts in thousands, except share and per share amounts) |
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Assets |
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Investments at fair value |
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Non-controlled, non-affiliated investments (amortized cost of |
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$ 11,264,956 |
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$ 12,010,369 |
Non-controlled, affiliated investments (amortized cost of |
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19,988 |
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6,175 |
Controlled, affiliated investments (amortized cost of |
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1,428,404 |
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993,801 |
Total investments at fair value (amortized cost of |
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12,713,348 |
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13,010,345 |
Cash (restricted cash of |
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658,702 |
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444,278 |
Foreign cash (cost of |
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956 |
|
809 |
Interest receivable |
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112,260 |
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108,085 |
Receivable from a controlled affiliate |
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22,978 |
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17,709 |
Prepaid expenses and other assets |
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3,152 |
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3,627 |
Total Assets |
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$ 13,511,396 |
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$ 13,584,853 |
Liabilities |
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Debt (net of unamortized debt issuance costs of |
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$ 7,077,088 |
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$ 7,281,744 |
Distribution payable |
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136,407 |
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129,517 |
Management fee payable |
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47,711 |
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47,583 |
Incentive fee payable |
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42,217 |
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34,462 |
Payables to affiliates |
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3,835 |
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6,351 |
Accrued expenses and other liabilities |
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182,745 |
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202,793 |
Total Liabilities |
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7,490,003 |
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7,702,450 |
Commitments and contingencies (Note 7) |
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Net Assets |
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Common shares shares issued and outstanding, respectively |
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3,897 |
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3,925 |
Additional paid-in-capital |
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5,924,002 |
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5,970,674 |
Accumulated undistributed (overdistributed) earnings |
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93,494 |
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(92,196) |
Total Net Assets |
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6,021,393 |
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5,882,403 |
Total Liabilities and Net Assets |
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$ 13,511,396 |
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$ 13,584,853 |
Net Asset Value Per Share |
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$ 15.45 |
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$ 14.99 |
CONSOLIDATED STATEMENTS OF OPERATIONS (Amounts in thousands, except share amounts) |
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For the Year Ended |
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2023 |
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2022 |
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2021 |
Investment Income |
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Investment income from non-controlled, non-affiliated investments: |
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Interest income |
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$ 931,870 |
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$ 887,753 |
Payment-in-kind ("PIK") interest income |
169,763 |
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113,256 |
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53,185 |
Dividend income |
72,936 |
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52,422 |
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28,052 |
Other income |
14,755 |
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18,514 |
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25,845 |
Total investment income from non-controlled, non-affiliated investments |
1,466,990 |
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1,116,062 |
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994,835 |
Investment income from non-controlled, affiliated investments: |
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Dividend income |
252 |
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— |
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— |
Total investment income from non-controlled, affiliated investments: |
252 |
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— |
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— |
Investment income from controlled, affiliated investments: |
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Interest income |
20,174 |
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8,206 |
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5,531 |
Payment-in-kind ("PIK") interest income |
1,934 |
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— |
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— |
Dividend income |
91,802 |
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77,047 |
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20,394 |
Other Income |
942 |
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689 |
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643 |
Total investment income from controlled, affiliated investments |
114,852 |
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85,942 |
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26,568 |
Total Investment Income |
1,582,094 |
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1,202,004 |
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1,021,403 |
Expenses |
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Interest expense |
436,306 |
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307,539 |
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219,132 |
Management fees |
191,622 |
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188,755 |
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178,472 |
Performance based incentive fees |
159,857 |
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118,091 |
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103,968 |
Professional fees |
15,532 |
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14,709 |
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15,071 |
Directors' fees |
1,280 |
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1,092 |
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1,021 |
Other general and administrative |
11,127 |
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9,290 |
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9,593 |
Total Operating Expenses |
815,724 |
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639,476 |
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527,257 |
Net Investment Income (Loss) Before Taxes |
766,370 |
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562,528 |
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494,146 |
Income tax expense (benefit) |
12,759 |
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5,810 |
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4,009 |
Net Investment Income (Loss) After Taxes |
$ 753,611 |
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$ 556,718 |
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$ 490,137 |
Net Realized and Change in Unrealized Gain (Loss) |
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Net change in unrealized gain (loss): |
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Non-controlled, non-affiliated investments |
$ 90,497 |
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$ (133,980) |
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$ 148,300 |
Non-controlled, affiliated investments |
1,033 |
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(49) |
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— |
Controlled, affiliated investments |
213 |
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45,602 |
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44,081 |
Translation of assets and liabilities in foreign currencies |
5,808 |
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(2,118) |
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(3,953) |
Income tax (provision) benefit |
(4,605) |
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(3,964) |
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(8,604) |
Total Net Change in Unrealized Gain (Loss) |
92,946 |
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(94,509) |
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179,824 |
Net realized gain (loss): |
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Non-controlled, non-affiliated investments |
(52,003) |
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5,171 |
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(46,332) |
Foreign currency transactions |
(1,242) |
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(1,025) |
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1,253 |
Total Net Realized Gain (Loss) |
(53,245) |
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4,146 |
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(45,079) |
Total Net Realized and Change in Unrealized Gain (Loss) |
39,701 |
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(90,363) |
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134,745 |
Net Increase (Decrease) in Net Assets Resulting from Operations |
$ 793,312 |
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$ 466,355 |
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$ 624,882 |
Earnings Per Share - Basic and Diluted |
$ 2.03 |
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$ 1.18 |
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$ 1.59 |
Weighted Average Shares Outstanding - Basic and Diluted |
390,104,585 |
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394,006,852 |
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392,297,907 |
PORTFOLIO AND INVESTMENT ACTIVITY |
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For the Year Ended |
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($ in thousands) |
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2023 |
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2022 |
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2021 |
New investment commitments |
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Gross originations |
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$ 2,165,911 |
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$ 1,997,087 |
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$ 7,456,901 |
Less: Sell downs |
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(10,803) |
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(224,665) |
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(632,072) |
Total new investment commitments |
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$ 2,155,108 |
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$ 1,772,422 |
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$ 6,824,829 |
Principal amount of investments funded: |
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First-lien senior secured debt investments |
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$ 1,523,503 |
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$ 788,717 |
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$ 4,369,794 |
Second-lien senior secured debt investments |
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— |
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6,883 |
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846,299 |
Unsecured debt investments |
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— |
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90,451 |
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132,288 |
Preferred equity investments |
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36,377 |
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90,110 |
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238,367 |
Common equity investments |
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86,457 |
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131,777 |
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113,780 |
Joint Ventures(4) |
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34,125 |
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69,125 |
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141,876 |
Total principal amount of investments funded |
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$ 1,680,462 |
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$ 1,177,064 |
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$ 5,842,404 |
Principal amount of investments sold or repaid: |
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First-lien senior secured debt investments |
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$ (2,069,540) |
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$ (1,116,583) |
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$ (3,343,381) |
Second-lien senior secured debt investments |
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(97,713) |
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(29,800) |
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(910,582) |
Unsecured debt investments |
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(193) |
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(31,427) |
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— |
Preferred equity investments |
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(6,952) |
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(22,843) |
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— |
Common equity investments |
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(195) |
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(7,350) |
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(4,827) |
Joint Ventures(4) |
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— |
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— |
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— |
Total principal amount of investments sold or repaid |
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$ (2,174,593) |
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$ (1,208,003) |
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$ (4,258,790) |
Number of new investment commitments in new portfolio companies(1) |
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32 |
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52 |
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67 |
Average new investment commitment amount |
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$ 53,397 |
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$ 22,757 |
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$ 82,831 |
Weighted average term for new debt investment commitments (in years) |
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5.6 |
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5.6 |
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6.3 |
Percentage of new debt investment commitments at floating rates |
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96.2 % |
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95.1 % |
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98.1 % |
Percentage of new debt investment commitments at fixed rates |
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3.8 % |
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4.9 % |
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1.9 % |
Weighted average interest rate of new debt investment commitments(2)(3) |
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11.7 % |
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10.4 % |
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7.3 % |
Weighted average spread over applicable base rate of new floating rate debt investment commitments |
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6.3 % |
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6.9 % |
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6.4 % |
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(1) |
Number of new investment commitments represents commitments to a particular portfolio company. |
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(2) |
For the year ended |
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(3) |
For the year ended |
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(4) |
This was disclosed as "Investment funds and vehicles" as of |
SOURCE