ARCC - Blue Owl Capital Corporation III: A Suitable Alternative To Their Sister BDC

2024-06-08 09:00:00 ET

Summary

• Blue Owl Capital lll is a newly-listed sister BDC to Blue Owl Capital with similarities and some differences that I highlight within this article.
• OBDE reported a decline in net investment income but saw significant growth in total investment income and new investment commitments.
• OBDE has a higher exposure to first-lien loans and a larger weighted-average EBITDA for their portfolio companies compared to OBDC.
• Their dividend coverage is also strong with 114% coverage. Additionally, their balance sheet is solid with investment-grade credit ratings and well-laddered debt maturities.

Introduction

For those that may be familiar with Blue Owl Capital Corporation ( OBDC ), a popular BDC here on Seeking Alpha, they have a newly-listed sister, Blue Owl Capital III ( OBDE ). They went public at the beginning of this year. For those who own OBDC already, their sister is another BDC you may want to consider....

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