Owl Rock offers up share repurchase

The mid-market lending firm hopes to give shareholders more liquidity. 

Owl Rock Capital Corporation has proposed a $50 million stock repurchase, an offer that would expire next month at a to-be-determined price.

The New York-based business development company disclosed the programme, which will remain open until 11 April, in a US Securities and Exchange Commission on Wednesday. The shares will be repurchased at the net asset value per share on 12 April. Owl Rock’s most recent net asset value per share stood at $14.85 as of 31 December, an increase from the $14.50 reported as of 30 September.

The firm said in regulatory filings it is conducting the repurchase to provide its shareholders with a measure of liquidity, given the lack of available market for Owl Rock’s shares as a non-publicly-traded company.

The share repurchase comes after a bump in the firm’s NAV per share from the third quarter to the fourth, meaning Owl Rock has grown that figure the three quarters it has been in business so far. In its first earnings report, the company reported NAV per share of $14.23.

For the year ended 31 December, Owl Rock reported gross originations of $1.17 billion and $172.5 million in sell downs, giving the firm total new investment commitments of $1 billion. A majority of the $980 million in loan commitments funded were first lien senior secured debt, at $584.66 million, while the remaining $395.5 million funded were second lien senior secured debt investments.

Owl Rock reported a net investment income of $9.8 million for the year.