OBDC - Earnings call 3 2023 | Blue Owl Capital Corporation

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Operator

Greetings, and welcome to the Blue Owl Capital Corporation Third Quarter 2023 Earnings Call. [Operator Instructions].

As a reminder, this conference is being recorded.

At this time, I'd like to turn the call over to Dana Sclafani, Head of Investor Relations. you. Thank

begin. may You

Dana Sclafani

Good third and quarter operator. Owl to Capital Corporation's earnings morning, you, welcome everyone, Blue Thank call.

OBDC. Operating Financial Joining Chief me as and senior Chief our this Executive our Lam. Chief Officer Officer, our for Craig members also Officer; in including this and Packer; and Maged, serve as several and mining September our quarter a Nicholson, morning direct joining Officer, who Alexis Jonathan including are manager Logan team, Chief Credit portfolio of We're of our diversified firm joined the funds,

like control. remarks statements, call I'd those materially company's of SEC. to may uncertainties guarantee results during remind described a not of including result are a that our of the outside Actual forward-looking forward-looking number as OBDC's that from made risks contain of involve performance factors, in or a those the listeners differ and may a future statements today's with results which number and filings are

no to release, are representations makes information. assumes company verified. at any Investor website and with blueowlcapitalcorporation.com. in on independently information XX-Q on including obligation update company not earnings companies, Relations The sources derived The has or Certain the from information warranties OBDC's and and respect available supplemental no presentation such been earnings this earnings of material, our was third-party this our to forward-looking discussed portfolio call statements. related to

the turn I'll to that, With over Craig. call

Craig Packer

quarter across performance. due third the third interest per Dana. of excellent $X.XX performance momentum, quarter we was NII. and strong higher resilient all joining income another solid saw was income delivering Thanks, for dividend income rates us today. driven and portfolio record our consecutive and everyone, quarter, by investment reflecting This share, of our In the Good increased morning, to you earnings. thank credit record portfolio continued Net

our in with equates $X.XX. increase NII a has paid increased $X.XX $X.XX distribution addition of for performance dividend return regular the called earnings Board the our for earnings to our confidence well and of in continued regular in of sustainability our dividend XX.X% reflecting share. third $X.XX of fourth total dividend excess the equity dividend on the quarter This both to for our declared of approved quarter to and regular Board previously declared also our regular shareholders. attractive quarter These supplemental Based an growing our dividends $X.XX a to the of our third share per translated on dividend, of increasing the credit has per into portfolio,

The generating is the of the dividend second during record this earnings third $X.XX increase a the to business our is XX% second quarter and in our continue we in This total period. with base those dividend increase earnings, represents for more our quarter XXXX, shareholders. than dividend since share of and total

$XX.XX, Net inception. $X.XX the per asset marks increased This our the quarter. second per since share share value NAV from to highest up

on X.X% nonaccrual Our fair from quarter. debt just names unchanged of with the remains of nonaccrual the portfolio rate last X at value low

We continue our nonaccruals to our principle. resolve protect to ability and demonstrate

Since $XX inception, net a basis XX points. and over we ratio of loss have billion of deployed capital only experienced

the with price of quarterly growth U.S. continuing many modest revenues performance reported as strength quarter, result Our a borrowers increases operating with inflation and moderating EBITDA expansion reflect to margin remained borrowers the last borrowers delivering solid, of Consistent our in levels. economy. and

revenue our has borrowers On a steadily growth last reported year-over-year XX% over for XX% past of basis, Borrowers performance the the to of quarters. EBITDA and roughly year. each grown X

resilient portfolio and reflecting continued less to and and the they the discretionary We beverage strong perform expectations. of deliver food, line continue insurance, nature the provide. to software, to services in these believe sectors, largest with durable our care be underwriting results, Our health industries will

the Even on monitoring are higher impact weight portfolio. our we environment closely the of still,

this the interest to come coverage year, seen today. Over X.Xx of with we from coverage rates have course moving levels X.Xx have down increased, as

the ago, the months been better-than-expected ratios [ is it ] outlook has higher today was performance. mitigated REIT than While operating coverage impact X on meaningfully by

first although continue As are XXXX. levels a result, mid-Xx rates believe interest ratios in trough we of will higher, coverage to reach of the half

The coverage that vast believe, see borrowers, we an maintain and our through liquidity adequate We this of the operating remain needs cushion challenged borrowers could will more period. expect list performance strong small. majority of

believe manageable engaged we underwriting Our with our and any be and as very focused borrowers, will portfolio whole. remain these across portfolio and challenges teams management a

be to higher with performance rates. very companies continue of the the our pleased We despite

over Jonathan turn financial to on provide With that, results. to our detail more it I'll

Jonathan Lamm

ended Craig. billion, quarter billion. investments net portfolio Thanks, We and debt total $X.X the of with of $XX.X assets outstanding total $X of billion

the $XX.XX NAV attributed largely was share dividends $X.XX up our distributions, of continued to grown quarter per return in as third as NAV in of Our which unrealized the quarter well portfolio. from paying from XX.X% the X.X% addition gains to Year-over-year, per equates net have to and XX.X%. $XX.XX, our by a we increase NII in of total overearning share NAV second a

from million fully new match repayments In originations continue which deployment, investment were terms $XXX repayments the for $XXX of commitments the had third million the of funded, of of was of year. the $XXX prior portfolio. up and of OBDC the to a quarter portfolio we quarter. offset invested by The with largely to weighted maintain average XX% yield in XX.X% million total

quarter, in results, these prior supplemental record per share in the Turning November XXXX, XX. record shareholders to quarter. for of dividend on $X.XX the We $X.XX the share per share December Based a statement. XX of on third third income our $X.XX a will declared Board per of up on be to from the paid quarter earned which

we still quarter to continue dividend pay level shareholders. declare a our is and our share, further XXXX, quarterly believe For expect to provide relative per of comfortable supplemental fourth to very our we and has to distributions regular to Board $X.XX the dividends increased earnings power, to which

to January XXXX, of This in of instituted paid allowing share. third XX The through XX. out dividend provides have NAV dividends us or additional the shareholders quarter of dividend on as we we of shareholders fourth increased paid quarter structure dividend supplemental earnings. also the while Since per to will record before excess $X.XX be December build to income our

income the $X.XX As a of the quarter. we result, third have spillover through of end

benefit the from range. quarter the quarter flexible our with prior we significant continue within net to and and sheet ended with structure. Overall, billion, line In well-diversified maintain balance continues target and OBDC of X.XXx. leverage $X.X to financing we its liquidity of

I'll that, Craig to it turn With back for comments. closing

Craig Packer

hearing I'd portfolio. today. cited will addressing some it higher to like is Jonathan. borrowers questions most longer high-level of frequent that assess and certainly time the Thanks, for most statistic is in rate the the metric Interest a to widely of How meaningful spend environment? coverage the one fare the is we're health

many in monitoring, evaluate comprehensive metrics ongoing a on borrowers However, us more to different portfolio perspective. our give we

overall In key addition support liquidity to are and and interest equity assessing coverage, in loan-to-value borrowers. free cash also potential of our health the believe expectations, considerations flow owner we

capital initiatives in when proactive to of the support through course include operating the These acquisition have businesses. improving cost-cutting are and the reducing working of sponsor's to year, business the believe liquidity been the Over rate costs higher and and equity critical willingness management. these the addressing value owners equity for expenditures spending. private We reducing needed, additional these environment and long-term with actions components preservation capital

cases. Even environment, comprehensive investments lower credit the number of we our invest had loan-to-value. approximately retained capital have significant important at loan-to-value. their An additional average, a underwriting contributed have amendments is sponsors of limited these a valuation XX% assessment XX% While On year, of companies. sponsors in equity in part this we in

continue a the means While motivation need private have not a will means to believe equity opportunity very business, economic take have also we firms It for contractually support a that high required, business. we if the this recovery. strong over we to the to that

work doesn't it this all through course, the effort that situations. challenging and more time Of of takes amount to minimize

the to both value. and base our resources with capital provide borrowers the to with time associated optimize to work the needed runway have We horizon permanent operating

by our work the outlook to spend the wanted investment our market and current for the The into nicely we add-on of on today, We have necessary buyout year activity. professionals commitment and ensure close, refinancings, reflecting in up year. minute next on team acquisitions XXX increased troubled to the situations our continue opportunity the picked I with portfolio. To quarter over activity driven first half and invest fourth new a since and has resources to to our protect

some We markets, have which public tightening has seen to the spreads. of reopening led of the

loans, unitranche still are absolute XX% new XX% return is to which very believe earn on able attractive a on we we returns opportunities. to However,

is to on in we leading continue title, PetVet. and one compelling a recent success portfolio, provide borrowers instead of only a as of agent the many broader largest each multibillion-dollar but on financing for deals of the refinancing the the notable and typically months, role, across financings scale, deal. just serve important larger facilities our Direct awarded in not administrative Many is deals these we've lender announced including Finastra for solution had which technical lenders and an

terms direct sponsor administrative borrower with transaction As the in we documentation. credit the the and dialogue shaping are agent, in the and

borrower allows us over team on operating gives a life and maintain our rollup In profile liquidity singular the the real-time addition, performance of the insight to basis. the which with frequent best dialogue to its loan, this a

reflects recent our have financing committed most and $X this on confidence Our sponsors attractive the franchise have equity role win the of some billion to continues the this that the We serve deals we private In across them. to months, administrative believe X agent of in sizes deals in over X market. firm. as important the with

this of today. also our benefit borrowers, both quarter portfolio into and the of borrowers XX% this are our XXX in with our confidence existing with roughly reflecting in We origination from growing the borrowers incumbency the power seeing deployed incumbency

deal interest to stabilize. allow and believe and this to further for activity to sponsors. robust the rate redeploy continued environment into valuations a companies Looking OBDC the environment We opportunities. in by M&A us activity market increase will could income increased rebound continue in as will more drive both and new lead which forward, we repayment capital expect Driving

success and NAV of a inception and OBDC's our This performance consistent an to remain of was. increase achieved is and the Finally, is attractive this to shareholders. what reflect want quarter ROE and distributions continued earning third we strong record We driving Credit I delivered NII. our XX.X%. quarter on since just highest strong

our shareholders. returns our be to deliver operating strong and to portfolio that well, and expect to perform will we able will continue We results

you for thank questions. and that, your today, for With line time the open now we'll

Operator

[Operator Instructions].

Securities. JMP with Our come first McKenna from line questions the Brian of

Brian Mckenna

So on question just Coverage year-to-date. regular has been supplemental and both to start. around the the dividends a running dividend XXX% of

So backdrop I expectation in credit guess, underlying is shift rate quarters also continued few material the and then this for no healthy a across next portfolio. trends the reasonable assuming the

Craig Packer

Brian. suggested, to to going pay continues this shareholders. the continue has as dividends felt well Sure, forward to base well and room really portfolio if the the perform us base, additional We a to well. to expect increasing this comfortable think little certainly We we Obviously, currently you rates comfortable and continue with stay high, folks have worked with conditions new and really supplemental additional I extremely should dividend delivered dividend. feel that

increase it's we we think feel comfortable conditions where should good it. we right if So And will are. now. sit really But I warrant, evaluate a always representation where of we whether

Brian Mckenna

then Got bit. it. switching gears a And little Helpful.

continue know upwards. I been investment Blue the last million Owl large of around size if on of market the platform holding steady more That broader your sizes several it's I trend companies, the in the part focused industry of the quarters. said, and $XX deal average look So this the end at is portfolio to

portfolio So we kind new size think investments about and OBDC how average of of size the of the overall then at should the time? over

Craig Packer

leading. been talked high-quality ago deals, of X a $X which investment opportunities. really large new I minute pleased about We've number with of the Sure. we're billion

in trend more. and this lending large our direct see quarter to in more companies tapping this continue We pipeline and with

So are particularly high. very I exciting, think the that's because quality very of companies

that new these It for moment OBDC size, million, investment million across a of the million, in available sign our quite investment be The When is sizing our large. As $XXX our fund as million, platform aggregate our target function $XXX $XXX total our up position a when it's comes to at we could $XXX leverage really at time. it level. squarely in capital platform. fund specifically, in is deals

essentially to sizing so And new replace investments are repayments. we

think I it quarter, bit so lumpy. a perfectly this get we be it, And can but in is it, accurate got little as you can

really larger are get couple to those this more put the able and love Having achieve to repayments the of in I years. we than said increased in would repayments we OBDC. marginally been if we've that over all like greater size So investments that, diversification last

And so that also a goal.

is because any or and take going of size is very the the the probably names think quarters I X in a time, But over higher not lot X that So much think number turnover. of to I would X, the drift diversification names XXX won't portfolio size change is it of good thing the given average average which attractive. a

Operator

Raymond come Dodd questions Robert the next Our James. with from line of

Robert Dodd

have commitment, at companies? the liquidity change I whatever, of you quarter next draws quarter. hard interest Congrats comments on cetera, I getting to the revolver very but mean your I disclosed any portfolio the seen helpful. the Craig, on coverage are one, they and I from questions. et upon to whether the sometimes whatever. in mean or X drawn commitments see expiring mean when or one you or those move mean,

you it making the just across have Or seen is any in So pattern it change there? business?

Craig Packer

business revolvers, change regards. to revolvers usual. their Robert. use business Companies and behavior fund the needs liquidity those No in Thanks, in short-term no on change as of

well. Our strong been highlighted statistics, both of but EBITDA really performing revenue we've pleased really the I with companies growth, year-over-year. quarter-over-quarter, operating are the growth, performance, some

of revolvers. on so nothing note And comment to

company I of just portfolio think it strength the reflects overall the performance.

Robert Dodd

Got it.

said, outlook, you it's and maybe I that are kind expect more by one, market? rebound you level to in bigger the obviously, theme, is think of activity of you kind you're winning I XXXX you a Any I the as a near up do the Or of continue on second term do the hard And you it very mean, spurt expect are thoughts could some mean, mean, deals. large deals -- The to industry future. in predict But that deals, to again? and there? the very

Craig Packer

pickup seeing I in optimistic look that comments, of exit the in significant activity. in activity firms from that fourth that quarter terms pretty fourth I'm and portfolio companies. pipeline XXXX this of our the quarter activity. appetite of of up a for good, There's new to year. we noted my see we'll already off looks the deal both lot to in a pent as repayments equity private We're

biggest For to be because would as had LPs to as aware follow equity the you'll They return of the equity months. like the opportunity would some given fundraising you more private industry, those and private single their over who that much of of is companies, that activity. the volatility XX equity they capital exit driver deal private is last challenged their like, not firms have to the

And if place. and beginning rate stability so think reasonable economy that we're stays happen. environment, in And in the seeing to in I markets and the we the a get

will in meaningful a see us. for pickup they'll drive M&A deals think I new activity that

You with companies in are been some refinancings What would high really private previously our examples, we've Finastra, increasingly have been of is that X Hyland. refinance really PetVet markets the be portfolio. there see quality will to pleased public sizable in been a very had in the in that markets pickup great financed choosing also

companies large really seeing lenders These we're an think, direct This trend strong is, returns. are And and as OBDC. such risk-adjusted attractive us offer for I extremely they some.

going continue meaningfully see in think to XXXX. I we're more to

deal high-quality as deploying those of So income repayments situations. I'm off well as repayments, optimistic in capital both about activity in generation terms of

Operator

of questions with next Our the line come Lynch Ryan KBW. from

Ryan Lynch

guys. quarter, Nice

the had as XXXX. are in lot potentially loans are the of leading as deals route. large pickup coming lot now you've that that a was, the market about the guys some questions to talked well credit you of I loan from broadly There's a One syndicated private going

you think PetVet, mentioned I Hyland. some Finastra, from

Just few leading guys an of or a you either example in. that participating are

these not maybe before large notion were the versus private syndicated some market just in that being the that loan credit are the choosing you to speak maybe of versus of syndicated private broadly the Can borrowers not side? to to this choice able access that coming that's access being why credit more the them to and market that, is they're a loan broadly able solution

Craig Packer

deploy have -- loan obviously, cash. phenomenon can they that is The And by so extremely high, this factors, far, the it's attractive credit. I there's reasonable multitude and at Look, think those In market lots for private Sure. CLO environments, a of of do purchaser CLOs. but public There are largest that spotting dominant CLO credits. have is CLOs strong when spreads. market loans creation times of wide. need in it's been profile. been those when bumping use has rating place, have this agencies been But ratings to rubric is a There's rebounding. certain missing, base when buyer year. it's the And they are It's CLOs served a then the times been evaluate creation not factors around. when

to rating, reason. to get if so markets, And for go get you it the public don't you you whatever can serve

You can't.

the horizon, credit the independent work, have have to no markets, they with private access have factor public sensitized equity a can issued don't private that over that risk them to time short-term rating meeting you live other credit they that if that they the our the we deal have to one a is with and of our that creditworthiness. in do with about that own firms have changing, had our to markets, is And and public make And even markets. longer we because got is rating become time, analysis the downgrade. are vulnerable live lack they there's when The own that that a own judgments

a to a become customization the premium and with have as a the certainty, solution more and firms are for that. private private firms choosing equity pay privacy, equity credit willing private the So the comfortable more

a is to these extremely to trend this companies. high-quality our for great think I get investors So access

have so CLO to range they're And may some finance companies trying cases, don't is where it's profile it there choice, be just in creation or our market the that a in light.

We more also public credit, offer. loan at XX% company. value. private maybe leverage that financing we're the offer a markets bit customization a we can't Generally can offer can high-quality for Again,

it's from I for at more businesses. of financings an -- we an markets. to much if bigger base get opportunity portfolio growing, things. allowing as our in high-quality invest in credit have would these I we're And is very to that private a is But capital industry much come opportunity there's to So think and combination set and done our look

it's think something very to I us to regularly sponsors that So see more would finance and sign much markets. the strength and ways a in private the of like they tell like

Ryan Lynch

Okay. on and really That's helpful. color background that.

because fund that wasn't the make The sponsor other really nonaccruals a so? additional was have color private curious where the capital really just maybe that on, should remaining nice guys low equity shown Just quality that Was that as the the something by love in in to you that remaining get curious had contributed But the I capital that XX% you didn't to request remaining was guys is equity NAV want of private to capital credit But portfolio, for sponsor to was, equity not performance. amendments that private a got mentioned in do? those that I some private that your say. I'm and well XX% question the little sponsors unwilling contributed. XX% something sure and do have something equity I on that you sponsor of XX% Was has didn't I made said of on I on correct. that equity Or just number believe private guys performance-related contribute made? you capital you cases, that had that I was into. have call with favoured the any

Craig Packer

great situation is Every think credit. and I one We Sure. -- unique. private of the of that's, again, attributes

talk problem, don't know. loan there's If They're broader you and a no you CLOs all there's that way to. to have credit sold a XXX by syndicated

You've to negotiation. no ability a have

We we've loan. bilateral a have,

being like on than and with typically are and the to We sponsors what's going of it, call on company. the able us more half discuss

our comfortably our might company, there list. of deleveraging. for things require One investors But high-quality price, leverage can are main into equity, the a where economic some elevated, situations type equity. its it if of ask a high very the be on maybe we company covenant, solution. where interest It doesn't a where is requires opinion, our popping loan cover mildly needs is it always and and That new some in at is spread

in every ask is those repayments. we us work And solution maybe private private for not call firm ways the for There's protection lot certainly or the out case. firms. equity of some for different with additional the with that equity so reasons, a we will really type but we'll cases, one of like Equity solution to problems solve obvious it's in a

have reached answer general solutions good amicably the The in material very our is, private question we your to amendments, firms. equity us in for

shouldn't a a just other that sign of representative to had get and You XX%. couldn't wanted what had we it not the deal amend That's we as [indiscernible]. read and the

Operator

come Our Truist of line Mark Securities. with next from Hughes questions the

Mark Hughes

don't trend private the been ticked lot amendment it activity. you you've how seen a but lately? up, on any know support, you're there, equity has the if trend getting whether Obviously, of whether suggested steady. Earlier I

Craig Packer

the It's year, We have variety, haven't was of mean we, cautious quite at higher. been portfolio. light. activity. amendment in given I amendment the really had single-digit really activity, It's very it's by way. more low would expected it. say the stress seen a I garden rates I in we were good I would beginning now

really -- amendment haven't this expected. really and here a SaaS quarter XX We fourth then the it's sponsor would of last support, last in really, And course the over sitting anybody any would lighter it's I'm the the into pickup. gave it. say quarter. quarter with have months, seen quite we light on was pleased we're The I quarter,

of plays. how it Now the remains quarter see rest light, we'll the and

Mark Hughes

of slow Do you last whether for economy that the couple Yes, quarters of growth, an have impressive. Fed XX% yes. pretty a EBITDA to you on think The I is expectation as for it Any there's to work? the does sense the nuance suggested XX% here?

Craig Packer

Sure.

that be XX% growth, quarter-over-quarter So I growth low just was in that single referenced EBITDA. And to in I XX% revenues comments referenced clear, statistic to the is year-over-year a also to my for digits. the

but year-over-year, lower a growth. level So more at significant growth quarter-over-quarter continued

think we've what of is with pleased in most our It's all been of sectors the breadth I the just performance. of most and our really companies.

so, with we're pleased And it.

I to the don't remind think to like cetera. of be economic just want on of food everyone, our most stable focused representation purposefully et as software, environments, U.S. the expect portfolio perfect recession I that economy, we we very insurance, are businesses sectors and in resistant beverage, healthcare,

weakness. be not economic are We to for warning early an trying sign

to These have We the and restaurant. look are to chemicals, the homebuilding almost signs. retail energy and like the would as sectors little in commodity early warning exposure and sectors no we

example, we our literally we is in I ]. strike which to an [ As had portfolio. exposure industry mean zero on the a in have now significant entire almost auto very sell industry auto the

I'm with do the some consumer the that to pleased expect conditions just performance is. So general I We continue. performance. industrial demand. have businesses or the general to economy that it are stays exposed way If

closely. so we'll And that watch

still I most has do economy portfolio this will recession, strong, well. we'll stays think I think economy point, we a downturn, they follow will and If avoid recession, a had if but our a the well. at I If really economic servers mild which goes the think do

feel we'll the unfold. months but optimistic, next as XX better cautiously So

Operator

from line come Hovde of questions next Our Zwick the Instructions] [Operator Group. Erik with

Erik Zwick

to spread a the as I in down in to One, wanted over exhibit come average past start the appreciate increase the investments, average that weighted some just that But the detail at portfolio. of and just in X the look all I still bunch of the increase new in notice both question. First, given I the and put you've quarters. rate slide you average looking able been with deck through interest rates, the yield has and base the

think of I on opportunities, the X.XX%, would given trends, kind obviously are spreads Or little the there? opportunities if there's would rates kind those given and the there opportunity overall is for trends to of of of for the curious X.XX% portfolio yield. kind rates peak But expand near on, you more little the of just hold a X new think in other declining bit the those, hold to the you on of kind yield from this to up cycle, the cycle? bit line maybe So interest so SOFR a

Craig Packer

Sure.

I'll comments. of So make alike been have from The quarter a but active, quarters of this a quarters are couple -- these a more standpoint. volume couple little was last

overall going in have portfolio. the not a they're they're impact to the So small meaningful sliver the of return in because portfolio a

look for in average the spread solid you If book, in at been rock it's we have X a a X.X%. quarters that the row into

And so it wouldn't reach too much into activity. any worth of X or X quarters

have of we my bit the markets reopened, tightening spread. seen a public in as of have comments note quarter did I this

the XX%. to of spread, seeing made wide spread. And still tightening comment providers great the is gaining us markets shut, returns, for of so high really a private public get first extremely bit. of this script. I spreads pulling had opportunity some been back. year, in was XX%, That half We're lots in a And absolute that the other

move It's to So I we for do with doing are syndicated base conditions extremely peak? market down that It's based their for quarter happening on based think these are market other up on peers on The what capital. our what's will given markets think at and that attractive so you're dependent. I turns asking new the we rate hard environment overall deals say. just -- extremely forward-looking, Are attractive. is a

the market will said, capital rates a growing will and function sentiment as additional now that of as peak expectation, go, right will come is expectation I suggest and in appetite investor that spreads deploy. are where think maybe out would where just curve that forward a to on that our down. I rates of, Certainly

with. we always We're can. best have worlds. we have But spread the credit and competitive get great to environment both of to much trying get We live that certainly want as as credits we protections and great

pleased it while. very for stay if be I'd like So a this

little attractive But up think a these really haven't will So think ago deal generate if months we and really I flow these -- income XX we're activity some months don't calls, for or bit expected. we do on better, returns had I do can attractive that that are anyone and we're likes of we pick will can. a ago, while. spreads, which the prepayment XX

we're what certainly so with we're very And pleased seeing.

move every band, we've band operated XXX band the in The on on and to right -- and a it's last quarter, that or down the takes out end. wide markets some moved operated again. that syndicated tighter general it XXX spreads band, If it's up existence will we've depending, But quarter dislocation is X our it widen since down. in and on now, in the it's over or a that all up spreads for but now, on over are and somewhere broadly

Erik Zwick

on couple new if that helpful. of that more to That's or to relative The detailed more there's the been of lower your was And down for leverage. appreciate exit the very closer fact comments second leverage repayments of purposeful over just end the target quarters, there. few just I me, the reflective one commitments past Curious past come range. quarters? has over to wonder the to

Jonathan Lamm

last Yes. matching and it's quarter, mostly it basically investments. earlier versus timing quarter Again, new I in was it has come from repayments this year. flat We're mean, a issue. the down but

wouldn't the little it XXX but we're a like were squarely is here. which higher, and area. We certainly could are earlier bit bit we're tick we where would operating happy certainly And I a year. much operating and up where read so I little we sort anything in call of

Craig Packer

a is tick extremely it's even lower about really I pleased I'm with our of what ROE -- is high. leverage, mean

powder. great So a great I combination of think dry with some returns it's

see we we And great so can leverage in I where invest. bit. take we up We opportunities, a like target leverage sit range. our really

Operator

Our the with Schleien come of from questions Mickey next line Ladenburg.

Mickey Schleien

in available you end? at the expense current wanted interest significant how have when the periods one that point. CLO unwinding I I in consider And your the do couple financings next to be reinvestment ask, market? to the over your of years on just terms could question this when begin

Jonathan Lamm

Thanks, Mickey.

reinvestment X typically years, our yes, to generally are more years. So CLO periods X X

on close of that to their, period, a within we they're go basis year a and will out coming regular do close reset a -- reset. when so or coming to And or effectively

it look So that concerned of case. transactions. and continue financing to terms those what be some repricing occurred the our not of CLOs of that a will that from already a perspective in has in cost We're from will like

we'll years, Again, the be On obviously, we in come In those those but material refinancings doing have there, unsecured side, cost there. up financing nothing accordingly XXXX. do years. have lower future do some future and in that will we really

Mickey Schleien

very mean, if the can AAA follow working just still Jonathan, wide. are I I in not the is machine That's well. spreads reason that up. world the CLO pretty

that where Or of sort are you today indicating in similar because market So you're those your are to available already spreads platform... at? the of

Jonathan Lamm

OBDC. of in A CLOs. have not little we we but all bit CLOs in wider, wider printed fair meaningfully this, of from And where these a number

levels. were them at printed of some wider And

tighter, bit bit wider. we're... little I a little ones And later but the a the think earlier So ones

Operator

Thank you.

reached any of for Craig question-and-answer back turn would the to comments. our have the over closing like We Packer session. to floor end now I

Craig Packer

deliver Great. quarter. Thanks to pleased all happy. with for extremely to really the for excited speak well the continues we're the very We're and dividend in particular increase, supplemental and work themselves. But results the joining. dividend Hopefully, just

rest with if And all. Have to we're day. follow-up, a of joining, any you we if reachable. be for questions all great thanks that as easily have that, pleased take them. be would will your a So And

Operator

does This you. conclude today's Thank your We participation. appreciate teleconference.

disconnect your at may of the lines your Enjoy day. time. You rest this

Blue Owl Capital (OBDC) 9 Nov 232023 Q3 Earnings call transcript