Blue Owl Capital Announces Major Shareholder Support for Merger Completion
On January 8, 2025, both Blue Owl Capital Corporation (NYSE: OBDC) and Blue Owl Capital Corporation III (NYSE: OBDE) announced that they received substantial shareholder approval regarding their anticipated merger. This union is noted to bolster the companies' capabilities and resource allocation within the growing segment of specialty finance that targets U.S. middle-market companies.
The voting results were particularly overwhelming; over 97% of votes cast by OBDC shareholders and nearly 100% of OBDE shareholders were in favor of approving the merger. These numbers reflect a strong confidence among investors in the strategic decision taken by the companies. The execution of the merger is anticipated to finalize around January 13, 2025, pending the fulfillment of standard procedural conditions.
Craig W. Packer, CEO of the respective companies, expressed gratitude towards the shareholders, stating, 'The approval signifies a pivotal moment for Blue Owl. We appreciate the unwavering support from shareholders of OBDC and OBDE.' He elaborated that this merger will create a more diversified business development company (BDC) with a focus on operational scale and solid credit quality that will benefit various stakeholders involved.
As part of the merger’s conclusion process, OBDE is set to distribute a special dividend of $0.52 per share alongside a quarterly dividend of $0.35 per share to shareholders recorded as of December 31, 2024, on January 9 and January 10, 2025, respectively. The special dividend represents OBDE's undistributed taxable income that is estimated to remain upon the merger's completion, which also covers any unpaid dividends linked to OBDE's initial public offering in January 2024.
Blue Owl Capital Corporation is recognized as a leasing entity, emphasizing its mission to finance U.S.-based middle-market firms. As of late September 2024, the company’s portfolio included 219 investments with an aggregate fair value of around $13.4 billion. In contrast, its counterpart, Blue Owl Capital Corporation III, had 185 investments totaling approximately $4.2 billion in value.
Both companies operate under the regulations prescribed by the Investment Company Act of 1940 and are managed by external advisors affiliated with Blue Owl Capital Inc. (NYSE: OWL), which is classified under the credit instrument umbrella of Blue Owl’s investment structure.
As the merger progresses, the companies are optimistic about enhancing their investment profiles and leveraging combined operational strengths to achieve greater efficiency and performance in the rigors of the financial market.
The merger is positioned as a forward-looking step that is anticipated to yield beneficial outcomes for investors, contributing to an expanded operational scope, increased market opportunities, and the enhancement of overall investor returns in the specialty finance sector. Additionally, the firms accentuated the importance of maintaining investor awareness regarding changes and developments through consistent communication, including forthcoming filings with the SEC.
In sum, as both entities transition into a single, more robust entity, there is a collective expectation for enhanced performance, increased profitability, and stronger market positioning, which are critical elements for navigating the complexities of the capital landscape effectively.
The voting results were particularly overwhelming; over 97% of votes cast by OBDC shareholders and nearly 100% of OBDE shareholders were in favor of approving the merger. These numbers reflect a strong confidence among investors in the strategic decision taken by the companies. The execution of the merger is anticipated to finalize around January 13, 2025, pending the fulfillment of standard procedural conditions.
Craig W. Packer, CEO of the respective companies, expressed gratitude towards the shareholders, stating, 'The approval signifies a pivotal moment for Blue Owl. We appreciate the unwavering support from shareholders of OBDC and OBDE.' He elaborated that this merger will create a more diversified business development company (BDC) with a focus on operational scale and solid credit quality that will benefit various stakeholders involved.
As part of the merger’s conclusion process, OBDE is set to distribute a special dividend of $0.52 per share alongside a quarterly dividend of $0.35 per share to shareholders recorded as of December 31, 2024, on January 9 and January 10, 2025, respectively. The special dividend represents OBDE's undistributed taxable income that is estimated to remain upon the merger's completion, which also covers any unpaid dividends linked to OBDE's initial public offering in January 2024.
Blue Owl Capital Corporation is recognized as a leasing entity, emphasizing its mission to finance U.S.-based middle-market firms. As of late September 2024, the company’s portfolio included 219 investments with an aggregate fair value of around $13.4 billion. In contrast, its counterpart, Blue Owl Capital Corporation III, had 185 investments totaling approximately $4.2 billion in value.
Both companies operate under the regulations prescribed by the Investment Company Act of 1940 and are managed by external advisors affiliated with Blue Owl Capital Inc. (NYSE: OWL), which is classified under the credit instrument umbrella of Blue Owl’s investment structure.
As the merger progresses, the companies are optimistic about enhancing their investment profiles and leveraging combined operational strengths to achieve greater efficiency and performance in the rigors of the financial market.
The merger is positioned as a forward-looking step that is anticipated to yield beneficial outcomes for investors, contributing to an expanded operational scope, increased market opportunities, and the enhancement of overall investor returns in the specialty finance sector. Additionally, the firms accentuated the importance of maintaining investor awareness regarding changes and developments through consistent communication, including forthcoming filings with the SEC.
In sum, as both entities transition into a single, more robust entity, there is a collective expectation for enhanced performance, increased profitability, and stronger market positioning, which are critical elements for navigating the complexities of the capital landscape effectively.
Topics Financial Services & Investing）
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