In its first quarter of operations, the Owl Rock Capital Corporation nailed down $307 million in loan originations, with the majority of the money going into second lien investments.
The New York-based BDC on Wednesday (10 August) filed its second-quarter results, showing that,of the amount originated, the firm retained $222 million on its balance sheet from six investments. The breakdown of debt investments Owl Rock holds include $40 million in first lien senior secured investments and $182 million in second lien senior secured loans.
All the BDC’s investments made in the second quarter were i floating rate loans, priced at an average of LIBOR + 8.3 percent. The average interest rate listed for the second quarter stood at 9.3 percent.
The first lien senior secured investments were $15 million in Blount International and $25 million in Strategic Partners. The loan made to Blount, an outdoor product manufacturer, matures on 12 April 2023 and carries a LIBOR + 6.25 percent interest rate. The money committed to Strategic Partners, which makes medical apparel, comes due on 30 June 2023 and is priced at LIBOR + 5.25 percent.
The BDC’s four second lien senior secured investments comprised $25 million in ABB Optical Group, $75 million in Ferrara Candy Company subsidiary, $32 million to the owner of American Roland Food and $50 million to Vencore.
The investment in ABB Optical, which sells contact lenses, matures 17 June 2024, while the Ferrara Candy subsidiary is due 15 December 2023. The American Roland investment matures on 29 March 2023. All three investments accrue interest at LIBOR + 9 percent.
The funds poured into Vencore, a federal defense contractor, are payable on 23 May 2020 and accrue interest at a LIBOR + 8.75 percent.
Owl Rock also said it entered into a $250 million revolving credit facility 1 August with Wells Fargo. The BDC has the option of increasing the principal amount to $500 million before 1 August 2017 and, under certain circumstances, could increase that amount to $750 million. The revolver will mature 1 August 2019, unless there is a default, an IPO or either party terminates the loan.
In its second-quarter report, Owl Rock listed $498.2 million in assets, but an updated amount filed with the SEC Friday (12 August) shows $1.7 billion. The more recent figure reflects new a $600 million cheque from the New Jersey Division of Investment, as well as other large investments from institutions and wealthy individuals.
The Owl Rock BDC is advised by Owl Rock Capital Advisors, the firm started by former GSO co-founder, Doug Ostrover, and the former KKR energy and infrastructure head, Marc Lipschultz.