#United States #New York #Shareholders #Merger #Blue Owl Capital

Shareholders Urged to Vote 'FOR' OBDC and OBDE Merger

In a pivotal moment for Blue Owl Capital Corporation (NYSE: OBDC) and Blue Owl Capital Corporation III (NYSE: OBDE), prominent independent proxy advisory firms Institutional Shareholder Services (ISS) and Glass Lewis have recommended shareholders support the anticipated merger between the two companies. This recommendation is crucial as a special meeting for OBDC shareholders is set for January 8, 2025, where they will vote on the merger proposals.

Importance of the Merger

The advisory firms have analyzed the potential benefits of the merger, stating that it could significantly enhance the scale and diversification of OBDC's operations. ISS noted that the strategic rationale underlying this merger appears solid, suggesting that the combined entity could lead to improved trading dynamics and long-term cost savings through operational synergies.

In a recent report released on January 2, 2025, ISS commented, "The strategic rationale for the merger appears sound. Specifically, the combined company will have increased scale that may improve trading dynamics and result in long-term expense savings from operating synergies." This aligns with Glass Lewis’s findings, published on December 24, 2024, which emphasized that because of the similar investment mandates and portfolio strategies of both firms, the merger should be straightforward to implement.

Voice from the CEO

Craig W. Packer, the CEO of both OBDC and OBDE, expressed satisfaction with the endorsements received, stating, "We are pleased that ISS and Glass Lewis support our Boards' unanimous recommendation that shareholders vote 'FOR' the pending merger." He further added that the merger is expected to position the combined company as the second largest publicly traded Business Development Company (BDC) in terms of total assets.

As the January 8 meeting approaches, OBDC and OBDE are reminding their shareholders of the importance of their votes. All shareholders, regardless of the number of shares they own, are urged to participate in this critical decision-making process and cast their votes as detailed in the proxy statement before the deadline of 11:59 p.m. ET on January 7, 2025.

What to Expect Next

For shareholders looking for more information about the merger, additional resources are available through the companies’ respective websites. The joint prospectus and proxy statement can be accessed at www.proxyvote.com. Furthermore, shareholders with questions regarding the voting process can contact Broadridge, the proxy solicitor for OBDC and OBDE, at the provided numbers based on their respective shareholdings.

Currently, Blue Owl Capital Corporation (OBDC) has a diverse investment portfolio comprising 219 companies with a total fair value of approximately $13.4 billion. Meanwhile, Blue Owl Capital Corporation III (OBDE) has investments valued at $4.2 billion in 185 companies. Both companies focus on lending to U.S. middle-market firms and are organized under the regulations for business development companies as per the Investment Company Act of 1940.

As the merger unfolds, it represents not only a potential shift for the involved companies but also a significant moment for shareholders, who now have the opportunity to shape the future of their investments. The support from ISS and Glass Lewis serves as a crucial indicator of the merger’s viability and anticipated success in the eyes of independent financial analysts.

Moving Forward

Shareholders are encouraged to stay informed and engaged, as their participation in the upcoming vote will be key to a successful merger. The outcomes could pave the way for Blue Owl to enhance its market position and realize synergies that could benefit shareholders in the long run.

In conclusion, the endorsement from leading proxy advisory firms is a significant boost to OBDC and OBDE as they navigate this transformative merger process. The companies look forward to a positive response from their shareholders as they head towards the crucial vote date.