Blue Owl Capital Corporation and Blue Owl Capital Corporation III Secure Merger Approval

Deal News | Jan 08, 2025 | Blue Owl Credit Advisors LLC

Blue Owl Capital Corporation and Blue Owl Capital Corporation III have announced that shareholder approval has been obtained for the proposed merger between the two companies. This significant move is expected to close around January 13, 2025, pending customary closing conditions. The merger aims to create a more diversified Business Development Company (BDC) with enhanced scale and credit quality. Over 97% of Blue Owl Capital Corporation votes and nearly 100% of Blue Owl Capital Corporation III votes were cast in favor of the merger. Both companies are specialty finance businesses focusing on lending to U.S. middle-market companies. Financial arrangements preceding the merger include a special dividend and a quarterly dividend by Blue Owl Capital Corporation III. The companies have outlined forward-looking statements, indicating potential risks and uncertainties involved in the merger.

Sectors

  • Specialty Finance
  • Investment Management
  • Business Development Companies (BDC)

Geography

  • United States – The merger concerns U.S.-based companies focusing on lending to the U.S. middle-market sector. The regulatory framework and shareholder meetings also occur within this jurisdiction.
  • New York – Both Blue Owl Capital Corporation entities are publicly listed on the New York Stock Exchange and headquartered in New York, making it a key geography for this article.

Industry

  • Specialty Finance – This industry involves companies that focus on niche financing activities. Blue Owl Capital Corporation and Blue Owl Capital Corporation III, as Business Development Companies, are engaged in lending to U.S. middle-market firms, a sub-sector of specialty finance.
  • Investment Management – This industry involves managing invested assets on behalf of clients. Blue Owl Capital, through its entities, manages financial resources and investments, aligning with their role in supervising the merger and investment activities.
  • Business Development Companies (BDC) – BDCs are investment companies that help small and mid-sized firms grow. Both OBDC and OBDE are classified under this sector as they provide lending and growth investments primarily to middle-market companies.

Financials

  • $0.52 – Special dividend per share declared by OBDE to be paid on January 9, 2025.
  • $0.35 – Quarterly dividend per share declared by OBDE to be paid on January 10, 2025.
  • $13.4 billion – Fair value of investments held by OBDC as of September 30, 2024.
  • $4.2 billion – Fair value of investments held by OBDE as of September 30, 2024.

Participants

NameRoleTypeDescription
Blue Owl Capital Corporation (OBDC)Target CompanyCompanyA specialty finance company focused on lending to U.S. middle-market companies. It is regulated as a business development company.
Blue Owl Capital Corporation III (OBDE)Target CompanyCompanyA specialty finance company focusing on the same market as OBDC and is similarly regulated as a business development company.
Blue Owl Credit Advisors LLCInvestment Advisor/ManagementCompanyAn SEC-registered investment adviser managing OBDC, serving as a facilitator in the merger process.
Blue Owl Diversified Credit Advisors LLCInvestment Advisor/ManagementCompanyAn SEC-registered investment adviser managing OBDE and involved in the merger proceedings.
Craig W. PackerChief Executive OfficerPersonCEO of both OBDC and OBDE, leading the merger initiative.