DEF 14A: Blue Owl Capital Corporation Announces 2024 Annual Meeting of Shareholders

Blue Owl Capital Corporation will hold its annual shareholder meeting virtually on June 21, 2024, to vote on the election of two board members and the ratification of KPMG LLP as the company's independent accounting firm.

Summary

• Blue Owl Capital Corporation will hold its 2024 annual meeting of shareholders virtually on June 21, 2024, at 9:00 a.m. Eastern Time.
• Shareholders will vote to elect Christopher M. Temple and Melissa Weiler as directors for terms expiring in 2027.
• The meeting will also include a vote to ratify the appointment of KPMG LLP as the company's independent registered public accounting firm for the fiscal year ending December 31, 2024.
• The board of directors recommends voting FOR the election of the director nominees and FOR the ratification of the accounting firm appointment.
• The record date for determining shareholders eligible to vote is March 25, 2024.
• In 2023, Blue Owl Capital Corporation had a record year, generating its highest annual net investment income per share, achieving its highest net asset value per share, and distributing a total of $1.59 per share to its shareholders.
• This resulted in a total return to investors of over 40% in 2023.
• The company's borrowers across Blue Owl's Credit platform delivered low-to-mid single digit growth in both EBITDA and revenue each quarter.
• As of year-end, the weighted average EBITDA of OBDC's borrowers was over $200 million.
• Blue Owl published its inaugural sustainability report on July 1, 2023.
• The company expects to see increased market and origination activity over the balance of 2024, deploying over $8 billion across the Blue Owl direct lending business in the fourth quarter of last year.

Sentiment

Score: 8

Explanation: The document conveys a positive sentiment due to the record financial performance in 2023, confidence in the portfolio's future performance, and the board's recommendations for the upcoming shareholder vote. The language is optimistic and highlights the company's strengths.

Positives

• Blue Owl Capital Corporation had a record year in 2023, with its highest annual net investment income per share, highest net asset value per share, and total distributions of $1.59 per share.
• Investors experienced a total return of over 40% in 2023.
• The company raised the regular dividend twice during the year.
• Borrowers across Blue Owl's Credit platform delivered low-to-mid single digit growth in both EBITDA and revenue each quarter.
• The weighted average EBITDA of OBDC's borrowers was over $200 million as of year-end.
• The company deployed over $8 billion across the Blue Owl direct lending business in the fourth quarter of last year.
• Blue Owl published its inaugural sustainability report on July 1, 2023.

Risks

• The document mentions that the company is defensive by nature and credit quality is always top of mind, which suggests there are credit risks that the company is actively managing.
• The document mentions that the company began last year appropriately cautious and prepared for a challenging economic environment, which suggests there are economic risks that the company is actively managing.

Future Outlook

The company expects to see increased market and origination activity over the balance of 2024 and believes the overall portfolio should continue to perform well.

Management Comments

• Craig W. Packer, CEO, expressed excitement about the company's future and its ability to deliver differentiated returns to shareholders.
• Management remains confident in the versatility of the portfolio.

Industry Context

Blue Owl operates within the direct lending space, competing with other BDCs and private credit funds. The company emphasizes its scale and differentiated sourcing, underwriting, and risk management capabilities within its $84.6 billion credit platform.

Comparison to Industry Standards

• The document does not provide specific comparisons to industry standards or competitors.
• However, it highlights the company's strong credit quality, with a weighted average EBITDA of over $200 million for its borrowers, suggesting a focus on larger, more stable middle-market companies.
• Comparable companies in the BDC space include Ares Capital Corporation, Main Street Capital Corporation, and Prospect Capital Corporation, but direct comparisons would require a more detailed analysis of portfolio composition, leverage, and investment strategy.

Related Party Transactions

• The Company has entered into both the Investment Advisory Agreement and the Administration Agreement with the Adviser.
• Pursuant to the Investment Advisory Agreement, the Company will pay the Adviser a base management fee and an incentive fee.
• Pursuant to the Administration Agreement, the Company will reimburse the Adviser for expenses necessary to perform services related to the Company's administration and operations.
• In addition, the Adviser or its affiliates may engage in certain origination activities and receive attendant arrangement, structuring or similar fees.

Stakeholder Impact

• Shareholders are expected to benefit from the company's strong performance and continued dividend payments.
• The company's focus on sustainability and DEI initiatives may positively impact employees and the broader community.
• The company's investments in middle-market companies support job creation and economic growth.

Next Steps

• Shareholders are requested to vote on the proposals outlined in the proxy statement.
• Attend the virtual annual meeting on June 21, 2024.
• Monitor the company's performance and updates throughout the year.

Key Dates

Keywords

annual meeting, proxy statement, board of directors, KPMG LLP, shareholders, election of directors, Blue Owl Capital Corporation, ratification