Blue Owl Capital Corporation III Announces Special Dividend of $0.52 Per Share for Shareholders

Blue Owl Capital Corporation III Declares Special Dividend

On December 16, 2024, Blue Owl Capital Corporation III (NYSE: OBDE) made a significant announcement regarding shareholder returns. The company declared a special dividend amounting to $0.52 per share, which is set to be distributed in cash on or before January 31, 2025. This move comes as the board aims to reward shareholders ahead of an anticipated merger with Blue Owl Capital Corporation (NYSE: OBDC).

Dividend Details and Merger Implications

Shareholders of record as of December 31, 2024, will be eligible for this dividend. This special dividend is expected to equal OBDE's undistributed taxable income up to the merger's date, and it even includes any unpaid dividends from previous declarations related to OBDE's listing in January 2024. The timing of the payment coincides closely with the expected merger close, which follows the shareholder vote scheduled for January 8, 2025. If this merger is approved, it would allow for an expedited payment timeline.

Craig W. Packer, the Chief Executive Officer of Blue Owl Capital III, expressed enthusiasm about this dividend declaration, emphasizing it as a reflection of the impressive performance from OBDE. He stated, "We believe this special dividend, alongside the anticipated benefits from the merger, underscores our dedication to enhancing shareholder value."

Performance and Portfolio Insights

As of September 30, 2024, Blue Owl Capital Corporation III is recognized as a notable player in the specialty finance domain with investments in 185 portfolio companies, boasting an aggregate fair value of approximately $4.2 billion. The company has opted to be regulated as a business development company, adhering to the Investment Company Act of 1940.

The executive team's robust management and strategic focus on the middle-market businesses in the U.S. have laid the groundwork for these promising financial results. Packer believes that the upcoming merger with Blue Owl Capital Corporation will provide additional synergies and ultimately enhance financial outcomes.

Future Projections and Considerations

However, like many forward-looking statements, there are inherent risks and uncertainties surrounding the potential merger and the special dividend. Factors such as the timing of the merger, shareholder voting outcomes, and broader economic conditions can influence the realization of these projections. Consequently, stakeholders are urged to stay updated with ongoing disclosures concerning the merger and the financial health of OBDE.

Investors should consult the forthcoming Joint Proxy Statement and Registration Statement, which will furnish essential details regarding the merger and financial outlooks. These documents are expected to clarify the implications of the merger on both corporations and their shareholders.

As both companies prepare for potentially transformative changes, this special dividend marks a significant moment for OBDE’s reputation as it aims to maintain strong relationships with its investors while navigating the complexities of corporate mergers.

In conclusion, Blue Owl Capital Corporation III is taking steps that reflect a commitment to shareholder returns amid strategic growth initiatives. Investors will be keenly observing the outcomes of the upcoming merger and its subsequent financial impacts on the special dividends and overall company performance.