Blue Owl Funds' NAVs Slide as Markdowns Hit Flagship Credit Fund
OBDC is trading near its 52-week low of $10.52 (5.5% above the low).
Summary
Blue Owl Capital Corp (OBDC) reported Q2 net assets of $7.03B, down from $7.68B a year ago, with NAV per share falling to $14.26 from $15.03. The decline was driven by markdowns on a small group of names. Adjusted NII of $0.34 per share beat the $0.32 consensus, but total investments at fair value dropped to $14.96B from $16.87B. The fund declared a $0.02 supplemental dividend. Separately, Blue Owl Technology Finance Corp. saw NAV per share fall to $16.48 from $17.17, though its total investments rose to $14.68B. This follows the 8-K filed earlier today with preliminary figures and the May report of evaporated retail fundraising. The NAV erosion and portfolio contraction signal credit stress that could pressure the dividend and share price.
At the time of this announcement, OBDC was trading at $11.10 on NYSE in the Finance sector, with a market capitalization of approximately $5.4B. The 52-week trading range was $10.52 to $14.53. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Dow Jones Newswires.