Owl Rock Capital Corporation Reports Second Quarter Financial Results
August 1, 2019 | Luke Schmidt | Blue Vault
On July 30, 2019, Owl Rock Capital Corporation (“ORCC”, “Company”) filed its 10-Q reporting its second quarter financial results. The Company reported net investment income of $119.6 million, or $0.42 per share, and net income of $124.7 million, or $0.44 per share, for the second quarter ending June 30, 2019. The reported net asset value per share as of June 30, 2019 was $15.28, an improvement compared to the NAV as of March 31, 2019 of $15.26 and the NAV as of December 31, 2018 of $15.10.
The Company announced that its Board of Directors had declared a second quarter 2019 dividend of $0.44 per share for stockholders of record as of June 14, 2019, payable on or before August 15, 2019. The Company’s Board of Directors also declared a third quarter 2019 base dividend of $0.31 per share and a special dividend of $0.02 per share for stockholders of record as of September 30, 2019, payable on or before November 15, 2019.
On July 18, 2019, Owl Rock Capital Corporation, a business development company, began its initial public offering and listing of common stock on the New York Stock Exchange under the ticker symbol “ORCC”. The Company closed its initial public offering on July 22, 2019, issuing 10 million shares of its common stock at a public offering price of $15.30 per share. Net of underwriting fees and offering costs, the Company received total cash proceeds of $141.3 million. ORCC also granted the underwriters an option to purchase up to an additional 1.5 million shares of its common stock at the public offering price, less the sales load payable by the Company, on or before August 16, 2019.
The stock opened at $15.50 on July 18, 2019 and had a day’s range of $15.02-$15.86, before closing at $15.49, with total trading volume of approximately 3.3 million. Excluding the trading experienced on its first day which saw extreme fluctuations in price and high trading volume, the stock price has a range of $15.49 – $15.99, with average daily trading volume of approximately 195,000, all through July 31, 2019. The stock closed on July 31, 2019, at $15.85, a 3.7% premium to the June 30, 2019, net asset value per share.
Prior to its listing, ORCC conducted private offerings of common stock to accredited investors. At the closing of each private offering, each investor made a capital commitment to purchase shares of common stock pursuant to a subscription agreement entered into with the Company. Investors were required to fund drawdowns to purchase shares of common stock up to the amount of their respective capital commitment on an as-needed basis. As of March 31, 2019, ORCC had $5.5 billion in total capital commitments from investors and had drawn $3.9 billion.
Owl Rock Capital Corporation is a specialty finance company focused on lending to U.S. middle-market companies. As of June 30, 2019, ORCC had investments in 90 portfolio companies with an aggregate fair value of $7.2 billion. 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 $13 billion of assets under management as of June 30, 2019.
Sources: SEC, Owl Rock, Yahoo Finance, Blue Vault
