Blue Owl Capital Corporation III
Blue Owl Capital Corporation III — Blue Owl Capital Corp III — Investor Presentation (January 2024)
25 slides from Blue Owl Capital Corporation III's investor presentation, Jan 16, 2024
Slide 1: Overview of intention to list on the New York Stock Exchange
Exhibit 99.3 January 16, 2024 Blue Owl Capital Corporation III Overview of intention to list on the New York Stock Exchange PROPRIETARY AND CONFIDENTIAL
Slide 2: Management Team
Blue Owl Capital Corporation III (OBDE) Management Team LOGAN NICHOLSON CRAIG PACKER President of OBDE CEO of OBDE Co-President of Blue Owl, Head of Credit Diversified Lending Portfolio Manager BRYAN COLE DANA SCLAFANI JONATHAN LAMM COO of OBDE Head of BDC Investor Relations CFO of OBDE 2
Slide 3: Intention to list on the NYSE under ticker OBDE
Blue Owl Capital Corporation The listing is expected to bring III intends to list its shares on one of the largest BDCs the New York Stock Exchange to the public market on January 25, 2024 under in a simple, streamlined way the ticker symbol “OBDE” 3
Slide 4: Listing summary
Listing summary Anticipated first day of trading: January 25, 2024 subject to market conditions and NYSE approvals • Blue Owl Capital Corporation III (NYSE: OBDE) Company Name (Exchange: Ticker) Net Asset Value (NAV) & • Net asset value per share of $15.40 as of September 30, 2023 1 • Implies a mark
Slide 5: Anticipated listing timeline
Anticipated listing timeline Provides existing shareholders with liquidity over time, consistent with manager commitment at inception January February March January 16 January 25 January 31 February 21 March 29 Q1’24 dividend Announced intention to list Anticipated listing Q4’23 dividend Q4’23 earni
Slide 6: Blue Owl Credit platform overview
Blue Owl Credit platform overview • Significant dry powder from sophisticated institutional investors allows us to $79.5bn provide scaled financing solutions Scale Assets Under • Large deal funnel driven by an extensive network of sponsors allows for a higher Management (AUM) degree of selectivity •
Slide 7: Overview of Blue Owl's BDCs
Overview of Blue Owl's BDCs We meet investors where they live One Pipeline, One Investment Team Blue Owl Blue Owl Blue Owl Blue Owl Blue Owl Blue Owl Blue Owl Capital Capital Capital Credit Income Technology Technology Technology Corporation Corporation II Corporation III Corporation Finance Corp. F
Slide 8: OBDE snapshot
OBDE snapshot Investment approach OBDE highlights • Primarily focused on senior secured loan solutions for U.S. TICKER NYSE: OBDE upper-middle market companies with significant operating history ESTIMATED 10.6% annualized dividend yield 1 DIVIDEND YIELD (including previously declared special • Diver
Slide 9: Timing to list aligns with constructive market backdrop
Timing to list aligns with constructive market backdrop BDCs meaningfully outperformed Portfolio companies Valuations present an attractive investor expectations in 2023 remain resilient investment opportunity • BDCs delivered total return of 25%+, • U.S. economy outperformed • Sector valuations rem
Slide 10: OBDE to list as a premier BDC
OBDE to list as a premier BDC Top 10 publicly traded BDC by assets • Fully invested and scaled portfolio; final capital call in 2022 Scaled, predominantly • Predominantly senior secured, first lien and floating rate portfolio first lien portfolio • Focus on non-cyclical sectors • 100% of investments
Slide 11: Senior secured portfolio focused on non-cyclical industries
Senior secured portfolio focused on non-cyclical industries $204mm 146 39% 0.8% $3.6bn 11.6% Portfolio Portfolio Net Loan-to-value Average debt 1 2 Portfolio size Asset yield company 3 4 companies (LTV) investment size 3 EBITDA Portfolio mix by asset class Portfolio mix by industry 4% 5% 17% 2% 12%
Slide 12: Disciplined underwriting drives excellent credit performance
Disciplined underwriting drives excellent credit performance 1 1 Non-accruals of top 10 BDCs by assets Company on non-accrual 4.8% since inception 4.3% 4.2% 1 Loss since inception 3.1% 2.7% Top 10 median = 2.2% 2.2% 6 bps Annualized 1.5% 2 loss rate 1.2% 1.0% 0 0.3% 0.0% Debt investments 3 marked be
Slide 13: Flexible balance sheet, well-diversified financing structure
Flexible balance sheet, well-diversified financing structure 1 1 Diverse funding profile Staggered maturity profile ($mm) $1,460 $260 10% 35% $575 23% $2.5bn Principal $575 amount committed $100 $350 $525 $142 32% 2024 2025 2026 2027 2028 & beyond SPVs Unsecured Notes Revolving Credit Facilities CLO
Slide 14: Attractive total return
Attractive total return NAV and cumulative dividends paid since OBDE inception $19.46 NAV per share Cumulative dividends per share $18.86 1 $18.30 Total return of over 2 $17.69 30% and net IRR of 12.2% $17.19 $4.06 since inception $3.58 $16.55 $16.52 $3.10 $16.31 $2.66 $15.92 $2.24 $15.47 $1.59 $1.2
Slide 15: Stable and attractive dividend profile
Stable and attractive dividend profile Estimated 10%+ dividend yield backed by track record of consistent performance and five special dividends declared at listing Historical dividend yield on NAV Future dividend yield on NAV Before Listing: Floating rate dividend policy At Listing: $0.35/share reg
Slide 16: Generating attractive returns with path to growth
Generating attractive returns with path to growth Return on equity (ROE) based on current rate environment +20 – 40 bps: Normalized Repayment Optimized ROE ~11.5% Activity • Achieve target leverage +50 bps: Leverage • Normalized repayment activity • Optimize secured and Q3’23 ROE 1 floating rate fin
Slide 17: Following our playbook for success
Following our playbook for success + Experienced team + Broad investment pipeline OBDE will follow our proven playbook to + Market-leading borrowers deliver long-term value + Emphasis on diversification to shareholders + Deep access to financing + Stable and attractive dividend 17
Slide 18: Appendix
Appendix
Slide 19: Blue Owl will offer two publicly traded BDCs
Blue Owl will offer two publicly traded BDCs OBDC OBDE Strategy Diversified lending with a focus on upper middle market, sponsor-backed U.S. companies Inception year 2016 2020 1 Portfolio highlights Portfolio size $12.9 billion $3.6 billion % First lien 77% 69% Total weighted average portfolio yield
Slide 20: Key dates
Key dates Regular dividends declared Declaration date Record date Payment date Amount per share 01/12/2024 03/29/2024 04/15/2024 $0.35 Special dividends declared in conjunction with listing Declaration date Record date Payment date Amount per share 01/12/2024 05/31/2024 06/14/2024 $0.06 01/12/2024 0
Slide 21: Financial highlights
Financial highlights (Dollar amounts in thousands, except per share data; per share data is based on Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 weighted average shares outstanding during the period, except as otherwise noted) Net Investment Income Per Share $0.41 $0.49 $0.51 $0.57 $0.56 Net Realized an
Slide 22: Internal portfolio ratings
Internal portfolio ratings At September 30, 2023, non-accrual investments as a percentage of total debt investments at cost and fair value represented 0.3%, with one debt investment in one portfolio company on non-accrual. ($000) 12/31/22 3/31/23 6/30/23 9/30/23 Internal performance Investments at %
Slide 23: Financing landscape
Financing landscape Aggregate principal Debt maturities ($mm) amount committed Interest rate Maturity date Revolving Credit Facilities $575 million SOFR + 2.00% 12/21/28 $1,460 SPV Asset Facility I $525 million SOFR + 2.70% 03/15/28 SPV Asset Facility II SOFR + 2.10% 12/02/26 $350 million 2 CLO XIV
Slide 24: Disclaimer
Disclaimer Past performance is not a guide to future results and is not indicative of expected realized returns. Assets Under Management (“AUM”) refers to the assets that Credit manages and are generally equal to the sum of (i) net asset value (“NAV”); (ii) drawn and undrawn debt; and (iii) uncalled
Slide 25: 6199460.1 PROPRIETARY AND
6199460.1 PROPRIETARY AND CONFIDENTIAL
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