Blue Owl Capital Corporation III Reports First Quarter Net Investment Income Per Share of $0.39 and NAV Per Share of $15.65
FIRST QUARTER 2024 HIGHLIGHTS
- First quarter net investment income ("NII") per share of
$0.39 , which exceeds the first quarter regular dividend of$0.35 per share by$0.04 per share - Successfully listed on the
New York Stock Exchange in January as one of the largest BDCs in the public market - In conjunction with the listing, the Board of Directors (the "Board") declared five special dividends of
$0.06 per share to be paid quarterly beginning in the second quarter of 2024 - 10.5% annualized dividend yield based on first quarter net asset value ("NAV") per share1
- NAV per share increased to
$15.65 compared to$15.56 as ofDecember 31, 2023 , representing the Company's highest NAV per share since inception
"OBDE delivered strong performance in the first quarter, achieving record net asset value per share for the fifth consecutive quarter," commented
Dividend Declarations
The Company's Board declared a second quarter 2024 dividend of
In addition, and as previously announced, the Board declared a series of five special dividends of
PORTFOLIO AND INVESTING ACTIVITY
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 FIRST QUARTER ENDED
Investment Income
Investment income increased to
Expenses
Total expenses increased to
Liquidity and Capital Resources
As of
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(1) Dividend yield reflects regular dividend payable to stockholders of record on |
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) 407-9714
- International: +1 (201) 689-8865
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 OBDE's website, and via the dial-in numbers listed below:
- Domestic: (877) 660-6853
- International: +1 (201) 612-7415
- Conference ID: 13745828
ABOUT BLUE OWL CAPITAL CORPORATION III
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:
BDC Investor Relations
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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$ 3,987,997 |
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$ 3,590,701 |
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$ 3,523,437 |
Total Assets |
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$ 4,180,538 |
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$ 3,761,097 |
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$ 3,629,962 |
Net Asset Value Per Share |
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$ 15.65 |
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$ 15.56 |
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$ 15.20 |
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Investment Income |
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$ 113,445 |
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$ 111,542 |
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$ 97,881 |
Net Investment Income |
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$ 48,275 |
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$ 71,647 |
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$ 61,579 |
Net Income |
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$ 54,061 |
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$ 80,557 |
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$ 73,976 |
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Net Investment Income Per Share |
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$ 0.39 |
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$ 0.58 |
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$ 0.51 |
Net Realized and Unrealized Gains (and |
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$ 0.05 |
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$ 0.07 |
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$ 0.10 |
Net Income Per Share |
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$ 0.44 |
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$ 0.66 |
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$ 0.61 |
Distributions Declared from Net Investment Income Per Share |
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$ 0.35 |
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$ 0.49 |
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$ 0.44 |
Weighted Average Yield of Accruing Debt |
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11.7 % |
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12.1 % |
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11.8 % |
Weighted Average Yield of Accruing Debt |
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11.7 % |
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12.1 % |
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11.8 % |
Percentage of Debt Investments at Floating |
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98.2 % |
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98.1 % |
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98.2 % |
CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES |
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(Amounts in thousands, except share and per share amounts) |
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(Unaudited) |
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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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$ 3,874,424 |
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$ 3,498,800 |
Non-controlled, affiliated investments (amortized cost of |
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113,573 |
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91,901 |
Total investments at fair value (amortized cost of |
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3,987,997 |
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3,590,701 |
Cash |
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140,229 |
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141,448 |
Interest receivable |
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32,307 |
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25,147 |
Receivable for investments sold |
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14,999 |
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— |
Prepaid expenses and other assets |
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5,006 |
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3,801 |
Total Assets |
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$ 4,180,538 |
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$ 3,761,097 |
Liabilities |
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Debt (net of unamortized debt issuance costs of |
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$ 2,124,005 |
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$ 1,754,496 |
Distribution payable |
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43,096 |
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60,779 |
Management fee payable |
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11,851 |
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4,517 |
Incentive fee payable |
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7,140 |
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— |
Payables to affiliates |
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3,724 |
|
896 |
Payable for investments purchased |
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32,731 |
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— |
Accrued expenses and other liabilities |
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31,291 |
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29,297 |
Total Liabilities |
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$ 2,253,838 |
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$ 1,849,985 |
Commitments and contingencies (Note 7) |
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Net Assets |
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Common shares |
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$ 1,231 |
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$ 1,228 |
Additional paid-in-capital |
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1,833,649 |
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1,829,029 |
Accumulated undistributed (overdistributed) earnings |
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91,820 |
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80,855 |
Total Net Assets |
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$ 1,926,700 |
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$ 1,911,112 |
Total Liabilities and Net Assets |
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$ 4,180,538 |
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$ 3,761,097 |
Net Asset Value Per Share |
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$ 15.65 |
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$ 15.56 |
CONSOLIDATED STATEMENTS OF OPERATIONS |
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(Amounts in thousands, except share and per share amounts) |
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(Unaudited) |
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For the Three Months Ended
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2024 |
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2023 |
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) |
$ 95,714 |
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$ 79,360 |
PIK interest income |
9,478 |
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12,483 |
Dividend income |
5,325 |
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4,979 |
Other income |
1,693 |
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1,059 |
Total investment income from non-controlled, non-affiliated investments |
112,210 |
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97,881 |
Investment income from non-controlled, affiliated investments: |
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Interest income (excluding PIK interest income) |
408 |
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— |
PIK interest income |
29 |
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— |
Dividend income |
795 |
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— |
Other income |
3 |
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— |
Total investment income from non-controlled, affiliated investments |
1,235 |
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— |
Total Investment Income |
113,445 |
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97,881 |
Expenses |
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Interest expense |
35,778 |
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28,539 |
Management fee |
11,851 |
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4,393 |
Performance based incentive fees |
7,140 |
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— |
Professional fees |
1,584 |
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1,259 |
Directors' fees |
228 |
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196 |
Listing advisory fees |
6,040 |
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— |
Other general and administrative |
2,151 |
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731 |
Total Expenses |
64,772 |
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35,118 |
Net Investment Income (Loss) Before Taxes |
48,673 |
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62,763 |
Income tax expense (benefit), including excise tax expense (benefit) |
398 |
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1,184 |
Net Investment Income (Loss) After Taxes |
$ 48,275 |
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$ 61,579 |
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 |
7,709 |
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23,799 |
Non-controlled, affiliated investments |
1,535 |
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26 |
Translation of assets and liabilities in foreign currencies |
(277) |
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52 |
Income tax (provision) benefit |
1 |
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(1) |
Total Net Change in Unrealized Gain (Loss) |
8,968 |
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23,876 |
Net realized gain (loss): |
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Non-controlled, non-affiliated investments |
(3,389) |
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(11,498) |
Foreign currency transactions |
207 |
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19 |
Total Net Realized Gain (Loss) |
(3,182) |
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(11,479) |
Total Net Realized and Change in Unrealized Gain (Loss) |
5,786 |
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12,397 |
Net Increase (Decrease) in Net Assets Resulting from Operations |
$ 54,061 |
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$ 73,976 |
Earnings (Loss) Per Share - Basic and Diluted |
$ 0.44 |
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$ 0.61 |
Weighted Average Shares Outstanding - Basic and Diluted |
123,028,290 |
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121,201,415 |
PORTFOLIO AND INVESTMENT ACTIVITY |
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For the Three Months Ended
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($ in thousands) |
2024 |
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2023 |
New investment commitments |
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Gross originations |
$ 743,919 |
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$ 21,814 |
Less: Sell downs |
(7,500) |
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— |
Total new investment commitments |
$ 736,419 |
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$ 21,814 |
Principal amount of investments funded: |
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First-lien senior secured debt investments |
611,078 |
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3,535 |
Second-lien senior secured debt investments |
— |
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— |
Unsecured debt investments |
— |
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— |
Preferred equity investments |
488 |
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12,162 |
Common equity investments |
19,332 |
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2,623 |
Total principal amount of investments funded |
$ 630,898 |
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$ 18,320 |
Principal amount of investments sold or repaid: |
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First-lien senior secured debt investments |
(56,756) |
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(2,697) |
Second-lien senior secured debt investments |
(172,113) |
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(4,800) |
Unsecured debt investments |
(3,796) |
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(36) |
Preferred equity investments |
(242) |
|
— |
Common equity investments |
— |
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— |
Total principal amount of investments sold or repaid |
$ (232,907) |
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$ (7,533) |
Number of new investment commitments in new portfolio |
43 |
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1 |
Average new investment commitment amount |
$ 14,493 |
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$ 909 |
Weighted average term for new debt investment commitments (in |
5.9 |
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4.6 |
Percentage of new debt investment commitments at floating rates |
99.6 % |
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100.0 % |
Percentage of new debt investment commitments at fixed rates |
0.4 % |
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— % |
Weighted average interest rate of new debt investment commitments(2) |
10.2 % |
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11.5 % |
Weighted average spread over applicable base rate of new floating |
4.8 % |
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6.6 % |
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(1) Number of new investment commitments represents commitments to a particular portfolio company. |
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(2) For the three months ended |
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SOURCE Blue Owl Capital Corporation III