Blue Owl Capital Corporation III Reports Full Year Results and Fourth Quarter Net Investment Income Per Share of $0.58 and NAV Per Share of $15.56
HIGHLIGHTS FOR FULL YEAR AND QUARTER ENDED
- Record net investment income ("NII") per share of
$0.58 - Dividend per share of
$0.49 for the fourth quarter, which represents a 12.7% annualized yield based on fourth quarter net asset value ("NAV") per share- For the fourth quarter, dividend declared was 90% of estimated fourth quarter taxable income and net capital gains
- Delivered annualized
NII ROE 1 of 15.1% in the fourth quarter, up from 12.9% in Q4'22 - NAV per share increased to
$15.56 compared to$15.40 as ofSeptember 30, 2023
"OBDE finished 2023 with strong performance and entered 2024 with momentum, successfully listing on the
Dividend Declarations
The Company's Board of Directors (the "Board") declared a first quarter 2024 dividend of
In addition and as previously announced, in conjunction with OBDE's listing in
Stock Repurchase Program
On
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 DECEMBER 31, 2023
Investment Income
Investment income increased by
Investment income increased to
Expenses
Total expenses increased by
Total expenses increased to
Liquidity and Capital Resources
As of
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(1) |
ABOUT
Blue Owl Capital Corporation III (NYSE: OBDE) is a specialty finance company focused on lending to
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 OBDE, 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 OBDE'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 OBDE'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 |
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$ 3,590,701 |
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$ 3,565,615 |
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$ 3,466,765 |
Total Assets |
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$ 3,761,097 |
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$ 3,672,136 |
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$ 3,552,739 |
Net Asset Value Per Share |
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15.56 |
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15.40 |
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15.03 |
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Investment Income |
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$ 111,542 |
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$ 107,216 |
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$ 90,093 |
Net Investment Income |
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$ 71,647 |
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$ 69,083 |
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$ 58,402 |
Net Income |
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$ 80,557 |
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$ 73,493 |
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$ 60,440 |
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Net Investment Income Per Share |
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$ 0.58 |
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$ 0.56 |
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$ 0.49 |
Net Realized and Unrealized Gains (and |
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$ 0.07 |
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$ 0.04 |
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$ 0.02 |
Net Income Per Share |
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$ 0.66 |
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$ 0.60 |
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$ 0.50 |
Distributions Declared from Net |
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$ 0.49 |
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$ 0.48 |
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$ 0.42 |
Weighted Average Yield of Accruing Debt |
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12.1 % |
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12.0 % |
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11.4 % |
Weighted Average Yield of Accruing Debt |
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12.1 % |
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12.0 % |
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11.3 % |
Percentage of Debt Investments at Floating |
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98.1 % |
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97.9 % |
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98.2 % |
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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$ 3,498,800 |
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$ 3,437,381 |
Non-controlled, affiliated investments (amortized cost of |
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91,901 |
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29,384 |
Total investments at fair value (amortized cost of |
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3,590,701 |
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3,466,765 |
Cash |
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141,448 |
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60,053 |
Interest receivable |
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25,147 |
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21,966 |
Prepaid expenses and other assets |
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3,801 |
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3,955 |
Total Assets |
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$ 3,761,097 |
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$ 3,552,739 |
Liabilities |
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Debt (net of unamortized debt issuance costs of |
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$ 1,754,496 |
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$ 1,660,310 |
Distribution payable |
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60,779 |
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50,425 |
Management fee payable |
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4,517 |
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4,173 |
Payables to affiliates |
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896 |
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1,926 |
Accrued expenses and other liabilities |
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29,297 |
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22,024 |
Total Liabilities |
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1,849,985 |
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1,738,858 |
Commitments and contingencies (Note 7) |
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Net Assets |
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Common shares |
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$ 1,228 |
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$ 1,207 |
Additional paid-in-capital |
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1,829,029 |
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1,798,712 |
Accumulated undistributed (overdistributed) earnings |
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80,855 |
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13,962 |
Total Net Assets |
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1,911,112 |
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1,813,881 |
Total Liabilities and Net Assets |
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$ 3,761,097 |
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$ 3,552,739 |
Net Asset Value Per Share |
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15.56 |
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15.03 |
CONSOLIDATED STATEMENTS OF OPERATIONS (Amounts in thousands, except share and per 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 (excluding payment-in-kind ("PIK") interest income) |
$ 345,962 |
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$ 227,727 |
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$ 85,019 |
PIK interest income |
45,461 |
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34,570 |
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10,070 |
Dividend income |
22,133 |
— |
12,415 |
— |
2,962 |
Other income |
7,291 |
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3,950 |
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3,180 |
Total investment income from non-controlled, non-affiliated investments |
420,847 |
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278,662 |
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101,231 |
Investment income from non-controlled, affiliated investments: |
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Interest income (excluding payment-in-kind ("PIK") interest income) |
182 |
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— |
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— |
Payment-in-kind ("PIK") interest income |
237 |
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— |
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— |
Dividend income |
1,553 |
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201 |
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— |
Other income |
10 |
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— |
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— |
Total investment income from non-controlled, affiliated |
1,982 |
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201 |
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— |
Total Investment Income |
422,829 |
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278,863 |
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101,231 |
Expenses |
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Interest expense |
121,679 |
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64,924 |
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20,113 |
Management fee |
17,863 |
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15,360 |
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5,471 |
Professional fees |
5,187 |
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4,037 |
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2,599 |
Directors' fees |
909 |
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1,165 |
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1,116 |
Other general and administrative |
3,397 |
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2,601 |
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2,063 |
Total Expenses |
149,035 |
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88,087 |
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31,362 |
Net Investment Income (Loss) Before Taxes |
273,794 |
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190,776 |
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69,869 |
Income tax expense (benefit), including excise tax expense (benefit) |
1,833 |
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862 |
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228 |
Net Investment Income (Loss) After Taxes |
$ 271,961 |
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$ 189,914 |
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$ 69,641 |
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 |
41,676 |
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(28,873) |
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5,436 |
Non-controlled, affiliated investments |
(5,547) |
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(34) |
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— |
Translation of assets and liabilities in foreign currencies |
710 |
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608 |
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(804) |
Income tax (provision) benefit |
(1) |
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— |
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— |
Total Net Change in Unrealized Gain (Loss) |
36,838 |
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(28,299) |
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4,632 |
Net realized gain (loss): |
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Non-controlled, non-affiliated investments |
(11,206) |
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874 |
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292 |
Non-controlled, affiliated investments |
— |
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319 |
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— |
Foreign currency transactions |
(37) |
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(603) |
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680 |
Total Net Realized Gain (Loss) |
(11,243) |
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590 |
|
972 |
Total Net Realized and Change in Unrealized Gain (Loss) |
25,595 |
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(27,709) |
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5,604 |
Net Increase (Decrease) in Net Assets Resulting from Operations |
$ 297,556 |
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$ 162,205 |
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$ 75,245 |
Earnings (Loss) Per Share - Basic and Diluted |
$ 2.44 |
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$ 1.40 |
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$ 1.67 |
Weighted Average Shares Outstanding - Basic and Diluted |
122,045,758 |
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116,045,926 |
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45,110,198 |
PORTFOLIO AND INVESTMENT ACTIVITY |
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For the Year Ended |
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($ in thousands) |
2023 |
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2022 |
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2021 |
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New investment commitments |
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Gross originations |
598,504 |
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647,766 |
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2,971,231 |
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Less: Sell downs |
(2,021) |
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(10,903) |
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(47,546) |
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Total new investment commitments |
$ 596,483 |
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$ 636,863 |
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$ 2,923,685 |
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Principal amount of investments funded: |
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First-lien senior secured debt investments |
434,318 |
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363,932 |
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1,947,683 |
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Second-lien senior secured debt investments |
— |
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26,883 |
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344,453 |
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Unsecured debt investments |
— |
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8,883 |
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25,065 |
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Preferred equity investments |
25,030 |
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50,972 |
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79,090 |
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Common equity investments |
28,422 |
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43,232 |
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65,407 |
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Total principal amount of investments funded |
$ 487,770 |
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$ 493,902 |
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$ 2,461,698 |
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Principal amount of investments sold or repaid: |
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First-lien senior secured debt investments |
(438,852) |
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(52,594) |
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(58,607) |
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Second-lien senior secured debt investments |
(13,268) |
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(1,200) |
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(23,556) |
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Unsecured debt investments |
(36) |
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(1,704) |
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— |
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Preferred equity investments |
(5,768) |
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(3,807) |
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— |
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Common equity investments |
(195) |
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(7,350) |
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— |
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Total principal amount of investments sold or repaid |
$ (458,119) |
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$ (66,655) |
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$ (82,163) |
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Number of new investment commitments in new portfolio |
29 |
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50 |
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68 |
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Average new investment commitment amount |
$ 16,021 |
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$ 12,737 |
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$ 38,820 |
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Weighted average term for new debt investment |
6.1 |
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6.1 |
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7.1 |
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Percentage of new debt investment commitments at floating rates |
96.1 % |
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95.5 % |
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98.8 % |
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Percentage of new debt investment commitments at fixed rates |
3.9 % |
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4.5 % |
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1.2 % |
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Weighted average interest rate of new debt investment commitments(2)(3) |
11.4 % |
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11.3 % |
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7.0 % |
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Weighted average spread over applicable base rate of new |
6.1 % |
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6.7 % |
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6.2 % |
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(1) Number of new investment commitments represents commitments to a particular portfolio company. |
(2) For the year ended |
(3) For the year ended |
SOURCE Blue Owl Capital Corporation III