Thank first CEO Rock Capital you, for our quarter you earnings of thank Corporation and call. of Owl a Craig everyone Rock operator. I’m Good Co-Founder Capital This Partners. and and for joining us Owl today is morning Packer
our today. Alan to Relations. COO; Joining and call the is Kirshenbaum Dana today these who your and well Investor everyone CFO me of during our times. Welcome are unprecedented families Sclafani We you and safe hope on Head us is and joining
have we ensure our been the and of focused operational our portfolio on Rock, while steps taking safety Owl At team full maintaining to managing the continuity. necessary incredibly
stakeholders. always and while been striving remotely has and with to closely team their accessible entire Our efforts engage providers proud for be we all two working and months are to of partners, our of appreciative our service to borrowers,
next. but these response discussing covers after different results, the than Alan highlights will our conditions. our and will of financial is then come across anything, investing markedly I discussing our quarter, by our start have bulk time seeing Then the this we Recognizing on briefly portfolio challenging seen. first outlook may spend for conclude of and I call what environment financial any any our our us today’s ever what activity, to are
versus the across same was the per portfolio quarter share quarter. down fourth in reflecting market amount with the quarter. the we $XX.X significant We prior quarter, of for net saw as quarter the X.X% the investment primarily per ended $X.XX end quarter the of the highlights, Getting at resulting value the widening income the the first the share spread into asset from unrealized net losses
Looking the have $X.XX $X.XX Board forward paid quarter, share, for the our per is declared our has which previously dividend second dividends since special IPO quarter amount declared same of addition a share. and to we each in of the per
completed million Moving million commitments, $XXX on of to we $XXX our which was investment investment and of sales. of fundings $XXX investment quarter, million new of net investment of the new net million activity. In funded activity, $XXX
of this my reflected comments on equity levels we quarter see levels did fourth private quarter with our lower origination which average than In-line activity. deal lower call,
saw in an In increase prepayments. addition, we
was XXX We new the The second-lien sized companies which of quarter new were investments basis in added space modest unitranche small companies of portfolio first-lien weighted with investments three equity the two spread loans seven for this term one average facilities, investment. across and facilities, points. software four
We spreads quarter. to were pleased are this able with we achieve the
We portfolio downs also the billion pay portfolio on full four $X.X facilities XXX companies, increased to We acquisitions. companies the our had investment bring used to of largely quarter across total reflecting the support in portfolio add-on end XX at borrowers.
advantage of more that of powder lower environment silver leaves a much lining opportunities. market in to quarters previous in-light change weather arrived the this net future be reflected with level the While activity us as storm dry has a to proven the this and to it that in of is take
to how dramatic we as could as environment for the change during COVID-XX the in-light about to the environment we Q&A our it perspective discuss pleased would are with session, the it share investment due we to would further be useful be this we most performance pandemic, our quarter much impacts of While and in thought happy the business.
this in period strength. position relative To start, believe, a offer want context. I to We of we unique some entered
primarily market businesses term upper-middle first-lien with million. of loans EBITDA portfolio consists an Our to of $XX average
We recession tried to businesses. assemble on in defensive our minded manner focusing by portfolio large, a stable, resistant
are We portfolio top the than representing industries XX diversified of well of industry positions across with the XX% total. X% XX our more representing no and
financial and weather we our challenges provide performance and at our or been portfolio were operational portfolio their and very sponsor-backed companies, which believe their performing because can sponsors has companies to very companies, this our large long-term of and preserve by that exceeding support can expectations. portfolio inception on financial them of into strong help value. coming focus Since crisis well most We
have On years. this roughly benefit last funds in younger the owned with relatively one of either companies of a sponsor-backed note, permanent platform having four closed or our is in that and two-thirds are equity private recent generally relatively vintages, funds portfolio capital
to to in from tend dry investments these powder to these the continue motivation that funds, both available support financial ability portfolio benefit these have sponsors provide that to meaning And and the the companies.
we of a In strongest in challenges strong sheets ahead. navigate the us provides we with one also portfolio, this entered balance period sheet. flexibility sector, later of on the Alan the level the but superior we touch to a call, which well-performing addition in have this balance with believe, will to
turn posed With to all pandemic. I our to COVID-XX that would said, by the the challenges response unique like now to
our and sudden has outlook, and Given to on portfolio focus economic been all change the across balance protecting our Rock Owl U.S. dramatic the our sheet.
information of prepare the so that taken our to investments. companies of steps have needs we for we our number portfolio, protect can and Owl to enhance to communication respect flow and With a
our we In have and addition monitoring underwriting rolled portfolio process, normal management an portfolio and enhanced out to management.
crisis the our scope re-underwriting a the impact assess of Since to each name of the and in clear, stay-at-home upon the embarked portfolio we potential became environment.
risks in heatmap impacted both as individual impacts on portfolio closely well been focused names. with monitoring new COVID have a as We exposures to sectors portfolio to
and sponsors These of on their happening happening being and emerges. the updated next, operational steps each are companies We weekly to ongoing, borrowers information conversations and have daily come is what may ground understand even as taken. spoken strategic what the or the portfolio at and with our
teams our this investment in real work, time. latest team with share they leadership updates the undertake our As
meetings are committee. to portfolio we with holding in addition, investment In developments company weekly full discuss greater detail the
This This enhanced a led and most each was is portfolio our created support by underwriters, for effort level Management. of Officer by to task our has been our which force of Chief investment. management Underwriting led Portfolio provide senior taskforce of Head
years who Head the to and With In another space capabilities. who add held workout professionals, to we board of investing brought role at in lender. previously a than this XX management, have portfolio continue and Workout also lending experienced have April, credit through on more direct our of direct experience a We new cycle. many spent investment
through believe, the to period. manage We portfolio the this have difficult resources necessary all we
senior plan workouts several their this with as We significant and hires additional area. our they to experience arise, have asked of dedicate portfolio management, we workout members team in including time to
We a prior companies healthy have crisis. of portfolio which quite to were the
liquidity. needs the on near-term of many economic companies for nature the has created shutdown pressure However,
for So we on that each are our borrowers. of focused
is impact of we outlook, the downside time. Given scenarios for economic are the felt sustained a running this in uncertain period
borrowers call. primarily preserving we posture support current on the should detail shifted focus investments. more capital our that the our in value touch significant can to it, will in later they our to so investment of our But right I need protect has now
under On I outstanding credit approximately revolving that approximately In our revolving funded that activity like to on net quarter. drawn. of touch total our note, commitments we saw revolver million XXX the would quarter, facilities, this the in credit being resulting facility we first XX%
Some for normal funding. course of this operational was
However, liquidity. have was off. orderly seen on revolvers Alan this activity and spend time we this their process, some shore shortly. borrowers down up draw chose their will more an to on This to level
to But the have I undrawn the balance should that of our to. of liquidity need we commitments multiples we entire fund would highlight necessary
funding credit provide where our we companies, financial Beyond it financing to is have portfolio feel facilities, also prudent. we to revolving ample resources
portfolio typically Lastly, to funds sponsors back their the substantial financial support we companies. have available
the look We and might their support them to it. should many we it like, expect are with provide companies need stand they discussing what ready of
to Now discuss the state current our I portfolio. like would of
U.S. is how see long more me earnings simply detail. what of we will and possible tell of last impact will state sense you I economy our obvious. it the can an our concern. what exposures XX to going point as this through positives First, not dislocation portfolio, sector of areas unprecedented relative to you the would a for and be. give is presentation with are we and of the let greater page our But
have and portfolio. inception, building Since focused investment we diversified a defensive on
speaking, Generally environment. beverage, core sectors economic and healthcare six we distribution comprise a sectors hold approximately than is XX% software, services, this in should food largest most our Our group insurance, up of current portfolio. the providers, our which collectively better think of that solid professional and
largest been always environment. be software one We the investments will resilient our has face economic amongst strongest in most and investments, Software the the our our of believe, of industries.
contractual customers customer and part retention. operations and of streams, used as These are often by companies daily their revenue products these have high
to unlikely are long as as they customers in business. remain As their cancel technology solutions,
these the revenue revenues think will may be these decline economy. a decreased of from declines from see customer believe in software companies in we So base. cushion while Overall, we businesses a
transitioned and continue and at been services our essential albeit distribution All have businesses largely environment. have professional levels, to a work-from-home our of businesses businesses classified as to reduced operate
Our annual other which a and names and seen In health recurring insurance risks while are healthcare slowdown. typically some sold renewal remotely have process. predictable a address businesses, businesses often our have
business more we the the levels. be to this to reopen, to underlying sound. areas Due these normal will businesses expect operations one Further, restrictions procedures, fundamentally temporary expect and medical operating the return first remain non-essential on many of will
idiosyncratic in Many in increase home of in sectors. better there should won’t up not felt from at benefiting the consumption. hold companies and businesses to beverage do be sectors is we food think impacts others. That our are any these food our But say than these actually
Now of to have areas focus. let’s most turn exposure sectors have we been impacted. aggregate, In that greater the modest to
have we portfolio represents to less from focus on a of impact companies We commodity that prices. gas sector, exposure X% our services within as limited with sector, and providing which oil and midstream only falling
That are said a economic direct experiencing do that candid with have want and from impact We shutdown. companies be certainly you. the to
have or to several While the which we sectors, do means, end serve we hospitality travel travel direct hospitality markets. have exposure do not and the
In companies the seeing which from store care end addition, leisure and ultimate of are impact direct closures. have markets in space, personal our a some
couple a We which travel. the are have airlines aerospace commercial investments of the and by production sector, impacted in aircraft drop in materially
significant have We service doors seeing may investments which a have drop are in restaurants, open several sales. quick still smaller in same-store
a we to our impact off expect these sectors, economic portfolio. in significant certainly focused In broadly to drop activity addition
the for ratings You these can credit developments in see reflected quarter. internal our
portfolio the scale. We the investments on as This our rating the first category, we that is investments this representing we time downgraded risk internal define X.X% alone inception of where rating four to which in since have materially origination. our increased has rating since
last that inception. and three portion of total non-accrual The quarter portfolio Consistent rated the the four rated We no approximately X.X% is status. increased with quarter, XX%. of our names ended bringing the to with to on since from three X.X% investments results
March, companies our their of each obligated were current end contractually the Through on interest portfolio XXX payments. of
to could For company’s lenders in in borrowers, interest liquidity. agreed payment order pick the we other made and our as be that those the two of the deals enhance
interest, company remains remains one This next after with in addition, covenant discussions the and we end, steps. current quarter and on that uncured company National company sponsor Dentex we in In its default. have on an are
investments call, you the XX%. the on comments This lose approximately would further how companies of value their means, is the average, average approaching are would I will remind some in still be our impaired. loan-to-value Later portfolio. and But we our of make not could XX% I on we
ahead magnitude value. challenges we businesses, the crisis will a While, entered significant. We which they retaining are healthy as don’t period minimize to portfolio come meaningful of believe this we want with of the the through
we that can ensuring on investments borrowers our to the of in case. financial best our and focused realize are the through wherewithal working these it challenges sponsors make as have value so we full the We each with
Before want to I over Alan, two turn events touch on that it occurred quarter ends. to I following
expiration the of tranche share lockup. was second The first our the of
lockup shares at XXX% IPO XXX July, pre-IPO in to approximately time As our a the a subject shareholders reminder, XXXX. of million our outstanding of were on
to the On of The became tradable freely public XXX increasing XXX shares shares July float locked million million final tradable will tranche April second become on up XX, freely shares. million our XXth. XXX
to Company’s to unanimously also announced the Xst X.XX from of regulatory of increased We operate with times, Board XXX%. to an a coverage target would debt-to-equity our which XXX% times the to ratio reduction April allow X.X of us effective, cushion range Once on minimum plan that Directors threshold. asset approved we
this was economic over I few to leverage want driven recent changes an have increased of from leverage a that This years. level, is not underscore environment, primarily time. the the any part past was of significantly sheet our rather by higher to evolution but driven the natural in by decision desire it with ORCC’s operate market or regulatory our not target cushion to over balance
From the track worked this agencies bondholders we equity time have of investors, was including hard record to a the stakeholders take lenders, strong right inception and and with build ORCC, our and to step. rating reputation this feel
will this outlook pleased our are to shareholders, strong prudently coverage balance The that of and a sheet. end, affirmed the to while maintain returns asset ability each continuing manage risk attractive deliver following that and investment To rating enhance reduced agencies our rating grade announcement. to we
turn I to over detail. it our financial in will discuss Now, Alan to more results
