Blue Owl Capital (OBDC) 10 Aug 232023 Q2 Earnings call transcript

Greetings. Welcome to Blue Owl Capital Corporation Second Quarter 2023 Earnings. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] Please note, this conference is being recorded.

to Investor conference Relations. like Sclafani, to now of Head would turn over the Dana I Thank you.

begin. may You

Thank you, operator. Owl Good morning, everyone, and Second Earnings Capital welcome Quarter Call. Corporation to Blue

Craig Chief Operating Jonathan morning Chief are senior Joining of other Officer, Chief management me and Executive team. Lam; this Officer, Officer Financial Packer; members our our and our

effort that You’ll referring now convention, including to naming part name effective throughout OBDC, Capital ticker, which The hear business the is new Owl Owl Owl Credit our new us Blue is as today’s a and of by in July. rebranding now BDCs broader and of the all became Blue company by Blue Platform call, Rock reflect its Owl’s known Corporation.

in listeners as may today’s the any our uncertainties risks SEC. materially assumes including the not statements. made like that results, with differ filings performance may number are of obligation to which of OBDC no those outside to contain control. statements, guarantee described forward-looking factors, involve a the the that from The call results of a future of a forward-looking result and are and or remind in Actual during remarks those number forward-looking update statements a I’d company company’s

our such are Certain of Relations information not supplemental earnings has been information our related or in derived the XX-Q OBDC’s website available and discussed including with third-party on company on Investor earnings warranties this sources and information. independently blueowlcapitalcorporation.com. no this earnings to makes was materials, representations call presentation respect section and release, The from portfolio at to companies, verified.

Craig. turn I’ll that, over to the With call

us thank for joining everyone, you Thanks, Dana. today. morning, and Good all

a of Owl as and Owl the provider full As platform market-leading business renaming BDCs. complementary recently its of well as businesses completed Rock part funds products, as a Dana to including solutions. capital included bring mentioned, This together effort as rebrand Blue all

Blue no has team, investors, or business. However, the day-to-day this operations of importantly, impact direct change strategy the broader investment on for OBDC’s Owl the lending the for company

second quarter Turning performance. another delivered our continued now growth to strong quarter NII We credit and results. of

net per is power our by share quarter. of $X.XX today’s consecutive is record last driven portfolio This second increased and in of environment. quarter the investment Our from NII higher the income to $X.XX earnings rate

increase to In fees we related also several addition activity, higher repayment negligible last the as a in been and to an saw you’ll recall, from quarters. benefit rates, which, have amendment for onetime

shareholders. translate growth continues NII our cash for The in to distributions into additional

$X.XX second approved share supplemental of Our the Board has quarter. for per dividend a

declared In base in When for supplemental our quarterly in represents addition $X.XX an quarter. the total $X.XX and dividends to ago. a year our dividend previously increase quarter’s total factoring dividend resulting $X.XX payout this regular approximate XX% components, the from dividend, of

quarter the Our ROE second on annualized points quarter. for up XX.X%, increased to XX last basis NII from

in from to in performance. year ROE attractive continue today’s that it X.X% an significant rates we market, able on XX% will based ROE. be believe last We our outlook deliver and We level as full a the excess for current credit represents year’s this of view for and increase to very ROE

in Net the the share dividend from gain $X.XX primarily marking to highest by by asset share XXXX. quarter, our our NAV $XX.XX, $X.XX. overearning per value first since increased per was IPO up driven This

the positive, partially our reflecting Net towards environment par. unrealized improving of gains and losses accretion and an investments were market also modestly

of Our at nonaccrual X.X% portfolio. rate value just remains fair the of low the

one end, quarter on having this We have of nonaccrual three added as quarter. position small names

and with costs have modest of revenues growth while from a benefiting post executed we continue input maintain chain price increased and at solid our to As borrowers’ we Companies able both increases performance normalization EBITDA. operating consumer COVID. lower to see for previously look also the continuation been quarter, in demand from results supply

expect as to borrowers now proactively the a This Every some arise. we our we are liquidity see prepared management pockets our evaluate of look well portfolio isn’t and metrics and performance. well-telegraphed higher rate teams each economic and stress but point, conditions they given operating the some been the rate and address at borrowers for of don’t preparing have while to context the coverage environment in concerns quarter, at for increases, of say to our that more underwriting and both company’s difficult

stable. in rate toward has believe a from view coverage mid trough a been negative environment today. And X.Xx of we credit overall interest company positive has been ratios Consistent remains factor, higher-for-longer the levels prior Xx, performance our quarters, While with trend the picture down one. net-net, will

see and trough this most to and of the We coverage strong an borrowers through this first XXXX maintain will half that performance believe period. in adequate cushion expect credit

these and into we we good That to have universe believe higher-for-longer we our before, small said, as visibility of expect rates discussed we This borrowers. have names. impact number limited, remains a

continue this approximately represents XX% the portfolio. We that to of estimate group

Now at-risk X% most the group, that are names.

field we Our the dialogue monitoring in in coordination teams, are portfolio underwriting workout professionals, these ongoing closely with borrowers select situations team potential management and, are solutions. with on and as needed,

of be challenges will as and will economic by believe manageable the In We offset will addition, continued than evolve. strength our this environment. our we more credit be quarter any and each entire to reassess interest earnings to in identify signs conditions of portfolio stress continue any rate

credit fare some year, we about how would defaults. stress were back, increases that Looking with environment, in or rate speculating we this entered would see significant a concerns there higher in credit as private

moment credit our has our delivering Today, borrowers through I the outperformed record some particular, Platform bear. these a and halfway on have not performance reflect strong. expectations yet so direct sector far. the Now is of Blue to in to want that the and take NII, is in across portfolio come to Owl general, this why year, we’re lending

across COVID. and demand of continued most by following the consumer First, better than rebound companies clearly, U.S. the robust consumption has fared industries. benefited has economy led expected, This

economic approach resilient a to performance strong we of OBDC In well direct portfolio. result is durability, unique building this the of the attributes to believe as addition lending as the our

believed advantages compared always provides We the to that have public markets. direct many lending structural

lenders interacting ability thorough to customize teams borrowers, diligence, ongoing we the provide due to private do that have have protection. directly are and management terms more As documentation access to downside with able optimal to

an We have Our market to with streamlined, and a target each Direct only only field. will typically be lenders often capital investors, exposures. more sectors can in every Unlike lender completely structures are concentrate in don’t group and on matching one noncyclical lenders volatile public few index. we deal. avoid

of to stick what we selectivity, We have we can the like. benefit and

broader is Blue opportunity middle deliberately our have have pivot on we at had lending to we, the response market-leading conditions. changing power. direct This market, focused companies, set, within strategy that in haven’t staying why Further, sponsor-backed economic businesses Owl, upper high-quality, to

quality always over credit the We have marginal return. prioritized

an we our see well doing class have OBDC in as approach, achieving well direct structured we our the today, lending portfolio portfolio these. times records. to So do designed is earnings even asset new and this because And like

I’ll results. that, to it provide financial detail on our more With Jonathan turn to over

ended billion. portfolio billion and of billion, with We $X debt the net $X.X total $XX.X Craig. total assets investments of of Thanks, quarter outstanding

largely our per our second first portfolio NAV NAV from a dividend. along $XX.XX, considering Our attributed the and quarter this largely $X.XX share earnings, per to of return paid with total growth from NAV X.X%, When last increase over $XX.XX, share the of year, overearning appreciation quarter over of was excess the the total dividends XX.X% period. driven the an of continued represents

of we saw slightly as activity the our market. for investment new the quarter. across activity higher $XXX increased million portfolio had Funded of for deal commitments levels OBDC

We to normalized of repayments signs also levels. received sales million reflecting in first the $XXX the a of repayment and return more quarter,

income statement. to the Turning

pleased our by we $X.XX up the of were announced a higher first per previously million increase the Owl second program was per investment the complete employee The mentioned, Blue share earned and largely in We of power Craig record repayment income. fee and onetime As share combined repurchase through to the repurchase in buying company’s quarter. vehicle. target $XX from $X.XX the share quarter, driven

X.X per of will a Board In third price share to as record per regular $XX.XX asset $X.XX quarter paid at total declared net has our The October an September on or XXXX, shareholders of shares company share, be per XX. million accretive share. which dividend, repurchased to a value the of of $X.XX approximately XX which was of average by before

of for record be Our on also which share shareholders XX. Board declared September a dividend $X.XX the of per XXXX, August second of to XX paid on supplemental quarter will

increased to the through instituted out $X.XX of supplemental XXXX, structure third dividends we NAV dividend This shareholders dividend while the income Since our share. also quarter we overearning of to dividend. our build of us additional paid per have provides allowing in

end the through income spillover quarter. of $X.XX the have we result, a As of second

where financing the benefit leverage X.XXx, balance and target prior ended OBDC sheet range. with quarter within flexible slightly quarter continues and ended to from well-diversified from in our We we net the its of structure. down

We unfunded also billion, well $XXX in of excess of our had commitments of $X.X liquidity million. approximately

With to comments. back closing Craig turn for that, I will it

our to outlook this for shareholders. we half To for more our Jonathan. of expect like the close, deliver I’d on Thanks, bit a spend second to year time how and

across and an deal been picked increased has We refinancing in opportunities equity our auction market, There activity discussions. seeing of up. activity the new increase private and has are pipeline

to type We for to borrowers in invest addition, for this we continue know add-on and continue In able financings we of flow well see borrowers. demand want we’re deal support. good to our to as existing already like

prefer also maturity amendment economic In activity, sponsors portfolio additional companies provide these in but maturities who In are for in have us modest repayments, to are with us asking more discussions. commensurate seen we’ve addition engaging exchange upcoming delay exiting traditional to attractive well-performing refinancing-like increases. sponsors to runway where situations,

from of we recently slowed than in illustrate pleased levels, are favorable current coming that committed XXXX. new the new for and to mega conditions. these with to attractive the smaller private set activity saw these in. opportunity public course, but deals takeover see The Often, opportunities we are, very Overall, year’s deals still has deal X financings last we sizes

Relic with Both Owl and of Clinical consistent strongest of to for care, lead market financing respective Just streams and sectors. growing revenue of market-leading New these two sectors their the our committed last in and health X Worldwide leaders week, are software companies Blue businesses, Trials.

whom private with with firms have premier times we backing worked before. equity We’re multiple

have which combined of facilities, the than financing. are largest We $X of more as and serving both of agent billion total a on lender these first-lien administrative

and pipeline conservative. economics remain attractive, remain Looking at our levels terms and and today, leverage LTV

some reopening markets were at seen which we levels. of recent on spreads, months, high loan in the With have public pressure unusually

spreads what recent seen we new on still years, over and all-in still investments. remain unitranche have we XX% relative can However, earn elevated to

from and refinancing pent-up assets selling buying demand believe and structures. there We that capital to and sponsors resume is borrowers

deal activity, the opportunities. we for in expect outlook the see As new meaningful economic in investment resulting and stabilize, conditions rate increase to a environment

To in day have close, portfolio. us Investor and covered all came I’d for our of pleased a We like our a you an of thank tremendous that significant our people, first with we our engaging Day. business turnout, who and our appreciation joined to to We away process better detail. hope everyone had are

shared we to can During the for event, we overall a map believe increase we ways continue ROE. road the

financing companies, portfolios. underlying continue our We specialty well-diversified accretive invest which portfolio to deliver in returns across

increased activity turnover see income. to which to generate that resumes, capital reinvest expect to provide We an will enhanced deal both once fee and opportunity portfolio

and stability returns. Lastly, our priority the credit continue performance strength will and is drive to top our of always

webcast website, were which you to Investor materials. and the would presentation the encourage For includes those of able to our full section not Day attend, visit a who of I event

of built, that, what’s thank you confident we and we are remain our to we well We for resiliency and what in your believe for come. the portfolio positioned very today. With time have

for open now line the We will questions.

is Casey with first Our proceed. from question Instructions] Please Point. [Operator Compass Alexander

a the simple on the and million it in Hi, it right, it’s thanks been share program. to $XXX good you I’ve If has less got my morning, still from than point few I Would repurchase questions. it this more ones here. discretionary be for fair have and taking read forward, past? fairly that, characterize left programmatic

I think that’s yes, fair. Casey,

execute to in we the that previous and in company employee intended purchase we’ve that think near pretty million I the million discussions purchase $XX on term, and done $XX that. clear were we

I pleased here, think how but very in the be open, stock. stock will has from We’re the performed. nice more opportunistic performance program with The with it the particularly is still

Okay.

of bit a pickup relative you your PIK about comments been with Can companies? contour that has year-over-year portfolio your there working to a Secondly, income. in

for that like of concerns, would XX% as some borrower, quickly than is we Sure. The income reasons. to structural be PIK pay, structured that and PIK. majority, and deals loan asked vast in to the growing make flexibility, we’re it from more were our from is that a but to serviced particular not It’s beginning, a reasons for company PIK for make specific that arduous more a cash credit

XX% plus compensated good to of flexibility. trade to for a getting of X just a nicely typically the situations And capital frankly, that, we’re And really do limit we X so. and that our feel years. of it’s use good it or allowing There’s

the the of because you – concerns so that course of more. not the has a And credit those noted, PIK grown percentage of to do chosen deals year, we’ve as growing because just over portfolio credit bit

down, therefore, a to PIK this got PIK example particular and, position, amount note to as a our reasons and that’s and for which You’ll went that income just we was everything is structured down. repay repayment a loan largest own decided borrower, great our the our single of high-quality they quarter, their on PIK significant because income Really I said. of of PIK

level and a here on – your made some Excellent. to stress ask and on allowing the for put question. me is best sort hat rates really distribution, to borrowers? comments this least of the of of that combination the keeping of prognosticator’s going Last you I’m What also your question, think your carries the maximizing amount because of optimal income, of but benchmark

here? Is where honey that bps Owl Like the Is manner? together XXX below most benchmark mix? operate borrowers efficient and sort in their is the it of Where and hole Rock it optimal here? of rates where’s

question. good we really – feel hole, to even a our trying at honey a rates. head around it’s higher comfortable today’s with I I’m portfolio but my wrap

rate be heard the put of were But their place and degree to majority great call, reiterate, able portfolio have flows. of debt. structures You’ve a on cash pressuring I’ll it’s capital comfortably support the the and in many clearly, that companies confidence we vast before of will our company move, these

it. our if work manageable to not a run the there’s going debt to But to have as able make doubt only going liquidity perspective CFOs, sure it’s they’re to managing From no And tighter. their borrower, companies, that but service be that and to talk is for the to business. they are you their they’re harder

that rates suitable suspect system being So both honest, we’re lower the and comfort better us earning I returns. be thoughtful overall and modestly would terms in of for their probably level

rates. benefit rate don’t investors. – I – mean, floating we we’re I we from higher

from benefited shareholders Our higher rates.

rates are us You’re seeing more this paying now. out These higher resulting dividends.

– our wouldn’t are down because I rates want go so don’t more much And I clients. to than here we it’s for great

it’s basis down, observers throw I it’s a would months. think with you that. optimal. to to XX while very than So XXX to be debate elevated way, points. go and by months, expect are the XX rates XX – don’t now most And basis XX XXX more a probably rates

worst. window limited – is a time at it’s really it’s So of that its where

that So is thoughts. guess – some I that’s

much very of it. that. I Great. All all Thank you right. appreciate for my questions. That’s

Casey. Thanks, Sure.

Please James. Dodd next Raymond proceed. with Our is Robert from question

congratulations credit on and on guys, Hi, quality. the Question quarter.

guessed this coming. was probably You

of currently covering in on – percentage give the stress. But tail, stress, the appreciate its us What not you I deeper color under is XX% terms and everything average. then interest? the of X% portfolio On

But tied percentage structured To if basis. you to on it’s were PIK a that that that, your loan, that of what way? structure underwritten point,

that expect is do what the right So covering way portfolio the versus structured to percentage you not that’s now? time? over percentage And that of evolve

names of today. X we peak That less are could be number XX. with X think, There rates, coverage sort interest than at

I is or points X%, slightly my So peak in a guess X%, percentage higher. basis maybe have X That’s it’s portfolio. number, probably at today, less a few dollars a take. don’t basis XX give rates. the on but

of the been It’s group same we’ve that’s So group. companies referencing. that the

the just statistic It’s much you company in think for to lender, very liquidity for more like. this the give coverage interest needs look high one statistics. a it’s the than How does interest a the Look, at conversations nice a and at statistic. shorthand obviously, But as trajectory, I portfolio. – is working a us stress we relative what’s coverage much have flavor to level have, capital just

we’re name those to name of watch that be names list. but a they that was for our it names If it they’re That’s – names we’re about, on very are we that weren’t names notice. – talking They That’s around acknowledge – they’re referring way. these will that them under are reasons, under we So structured should why particular are a not Xx coverage why stress. some that – as that way highlighting of wouldn’t are were concern. was structured those

So this the universe. is

this. really work are of doing them. companies the We nice a through job with working But

and constantly them It’s with sponsors a not dialogue object. the in We’re fast-moving constantly.

look we Sometimes out. can

projections. we out X to have companies proactively work sponsors look ahead time. problems And of We and months. months, well the the We X address with

universe on the situations isn’t And to is where from the is going in support our less stems financial why tremendous our sponsors. our loan than to confidence grow tight, in the portfolio from value average XX%. the coverage Even

a liquidity, you’re their that’s and And well. have on mark you a as they you portfolio sponsor, so – financial tight if company think but

But that’s think working seeing the solving with The work you’re a seeing. If in you’re going time self-interest sitting rates to in it’s to on very pickup constructive particularly some you buy pretty I a own an capital why obviously them in We And stressed the with We think names. down. want are real to to it. And your them. you not value, in if the equity more think – that’s problem. – investment some even go a it’s are defaults. to put sponsors solve relationship additional behavior substantial we’re

that definitely the matters, it’s well. as thing the appreciate not only that but discussion helpful yes, that I gave in is lead direction I of more color. very fulsome the you all right. All And

to can on yes, be but up the good – color ramping platforms, right that add-ons. on mean I seems everything like like well, it’s refis as new to So get basically, I and now.

Is it to that about as the we mix, you available – of new the or legacy be more that out? as there’s be with benefits not to platforms platform? some forward, might terms is refinancing that shake – carry to how expect you can going you of But better that relationship color add-ons, a has – obviously, more good to terms happen quite as in direction do the more and go shift going work where give eventually. Any that your lot terms on think that’s may it

I think flavor that in consider, could that add-ons, new buyouts, there’s every activity a lot of pent-up auctions. refinancings, you just

think all of new is terms I that any We of investment approach time. it mind pent the getting with market up. So at

directions. So any to We or get relationship in market it. I get refinancing both benefit and to to any market had terms an add-on terms, sponsors think don’t want want the of kind

And always discussion so and back there’s forth.

look refis. deals in a So – I and at wouldn’t I sure you that that think wouldn’t don’t getting we I term – is about it. we to better we versus result mix the X make really but think will for think, we’re how not snitch spend the would better well, want could mix get Maybe compensated conclusion. terms draw margin, on capital, When it. new

the I’ll just in script, it but here. underscore it mentioned I

we’ve completed script, sign Worldwide we a We’re a very mentioned New deal from third it closing, about Relic, attractive while X show financings, deals environment. up signed deal just up because quite the quarter the takes a may Clinical. flow in excited not but for in I when It to

minutes ago, mentioned are These a $X few sizable, deals, I financing. in billion brand-new

largest We’ll – both. and we both. same terms economic terms the of and piece attributes of covenants protections. the they quality that in all take credit like the and in leading have And We’re deals all

now, we’re I seeing I’m guess, saying. so think I is And what it

because in mentioned we’re it. of a take compression. I up were the So Spreads showing X there’s the wide to a pickup year syndicated were bit now. result going sheets. bit on spread time for seeing also a re-mention it. little markets It’s of that months balance to just investments shut. extremely to I’ll I mentioned for new

still attractive They’re very versus where spreads were months XX elevated Spreads and have compressed. ago.

for reasonable So pretty think loans. But investors. loan-to-value on borrowers it’s first-lien for I a XX-plus term and new percent place are for sub-XX% we unitranche earning

and I of think be the attractive have and fortunate it’s to to extremely some biggest a position lead in these attractive, of piece we’re really deals.

you. Thank it. Got

Robert. Thanks,

Ryan is KBW. question next Our with Lynch proceed. Please from

wanted Craig, just kind on you good to last of I Hey, follow-up made that comment on morning. spreads.

fairly wide I kind you of think said but still alluded this, are tightening. to but you spreads are

the really and tightening But about the you hear, is think syndicated driver opening a to love them. just spreads up I mentioned what I’d behind back maybe market maybe pressuring something little bit? maybe

out would the there’s you that there, more deal Because think, might kind of activity you have thing extent the happening. to opposite

syndicated that of is really or market I’d So hear, up, of syndicated opening the because up opening is If just to even? love market drivers because it another the it the behind what’s reason?

mix. and Look, into a of sponsors capital it’s price our It’s Sure. go a we their a market. components choices. lot There’s make how how that the

in component willing the The long Banks time. alternative sponsors’ financing a deals. are And now. are so is markets, open X It’s to that open. shut was to for public commit markets the

might the And pricing sponsors that consider so like. look will what

because The the debt, you generally high-yield And syndicated you buy that in solution, therefore, and, it. wouldn’t unitranche offer additional want in Syndicated the get for financing. agencies doesn’t Generally are syndicated bonds. rating suited if buy have rating buyers as form part first-lien can CLO well not all unitranche it the second-lien great would a or financing. markets a deals give the not markets of who

math. they’re from unitranche try – versus from But bank, a a has financing which direct that comparing a lender uncertainty to flex and they’ll combination to really do a it. it’s So

they open, will underwrite, willing the to and are they’re banks compare. sponsors the as are when now So

pricing pieces, that to that us to the somewhat their for a But it. we and in they’ll can pay related the compared factor certainty options combination these has are. what be of Here’s premium flex, premium provide, X to the

that’s variable. So X

lenders. And Are say, capital capital? do but for camp, would that And just what on so reason, willing the capital, for some I is to we direct Another this they folks a weren’t general direct large lenders ago, with competitive that not and were terms? flushed repayments. were as year fundraising, environment whatever commit in have variable there

Again, some kind seen we’ve by seen a some direct an more were desire more the their we’ve in but that push pretty heels, increased tighter we’ve aggressively have coming been for of so consistent time, bit willing And whole on and to pricing. lenders. been

those factors. are the So some of

seeing we’re And spread still XXX, getting XXX XX, points so you’re basis compression. XX on over XX months Again, some wider ago. unitranche. tights That’s least of at the than

up So and it’s think just healthy and goes now. in it’s the market. down, It really I place a

supply So We’ll wider. say, over see. resulted to capital demand. could would this tightening. well, going coming of months, is It there’s point. those tighter. And to more new but the new could deals, also out your chase last leveled Well, I at just why go more it think deals, But there’s couple question, – it’s deals. tighter? the there’s kind Yes, more it’s over last that’s It of in spread I this and go

numbers. base the are And We really high. focused these extraordinarily can spread rates on the get deals, attractive. credits, The

of an points. or XX extra yes, all to basis get course, we’d prefer So XX

what the like indicative and we’d deals, what’s mentioned just seeing they’re is of we’re course, extremely think, high. I that. Of these I of quality But X exciting, but

so lot comfort of that. in a And take I

moving pieces. the Yes. of That’s commentary helpful, all really, on really kind fulsome

great. that’s So

you was core supplemental dividend core to policy. the is raised, the the going have back guys original policy. know question moved the I set dividend some policy now captures had dividend But earnings up was other The – substantially. that. and your of have then just I Obviously, the supplemental when

the recent next most about you of coverage Or earnings have you in if guys curious, get just I’m XXX% you where have quarter little dividend payout total to dividends. that look on earnings? any a that Is for closer that is guys projected, total But bit to to want there be? at quarter, thought supplemental the you kind dividend

of Look, of with portfolio. we how the in has we balance pleased this the more trying can stated The then with And we’d you’re offering supplemental. When and strike I’ve be was it, knew Jonathan the the of it really add. dividend, rates, dividend earning the plus recognition been supplemental comment I’ll predictability introduced new. certainty clear to the worked. higher

tricky a assets wants are – it’s Again, everybody floating they rate, around. and but certainty, underlying our move

we way our offer think you is great from certainty the to a supplemental to do that’s And fundamentally And base do how increased $X.XX. time, know that. the $X.XX something construction of you at around? we So recall, moving I

quarter. but Again, sure I what think committed we’re just a to It’s want should make it formula clear. to it’s be that – clear, I every

should So company. more then degree we very levels, before We at our exactly will which had supplemental XX% new what excess. income, as investors, I in to a of think, out be. And high have public a of relatively confidence we’re these building committed the earnings basically amount pay never a spillover nice additional

earnings to And the to Thinking away of years – comfort so income. or X now, able we future offers think consistently spillover stock X are additional additional that in that in we’re investors. next we the some

from So money benefiting They’re more well. benefiting their pocket. also are worked cushion. in feel this has like out increased from Shareholders really I

of going the to we’re is. – at terms look In But of that. rates. time know uncertain guts the every It of given quarter, your I’d We trajectory it, question, for an say, all right? just it’s

years a we look X that, we the think And greater see next probably clarity go before change. X to term, want some in or would so short to very rates on over where might I would

here. percentage, a think bit there’s magic components think formula of just I don’t that to I move do So any the around but the going formula are

we watch so will it. And

very shareholders. to We’re deliver to motivated capital our back

getting like a I dividends. shareholder. I’m shareholders. all We’re

We’re for know going that to also consistency. continue ways we people increasing to them. look value for But

reduced anxiety And really months then it’s I it nice get to some want balancing formula into to whether of unnecessary again. lean about And so those X this X two. something, we or and a later, don’t think creates going does job

me. understand. That’s today. all I appreciate I the Yes. time for

Thank you.

with from question is next Please proceed. Hewett America. Bank Our of Derek

a the the you and talk could couple BDC investments, congrats million look the about during on a scheduled second Wingspire quarter-over-quarter investment of and down added basis. investment It quarter. at But if dividends? to the dollars actually looks everyone, Craig, morning, to then on it the you X of the is dividend looks about was the your a like modest Good outlook quarter. for write-up there the like good

we the Sure. performance. management a created team, Really, we’ve the times, experienced business with equipment there working in They we’re very business. finance an organically, built business talked happy substantial did Wingspire as that about with multiple acquisition out an the

so we to loans. are diversified equipment Wingspire. loans of And a finance capital continued underlying asset-based add to – and we’ve It’s pool

we’re pleased so with the performance. And

going capital. to to We’re continue add

through Wingspire coming We, in out on may carefully. team Wingspire And meet of Wingspire OBDC, the Wingspire. role levels at regularly and any go happening what’s bit to up Board, they at the a determine down or based dividend on our thoughtfully given with quarter

increased million it So $X in had this in to quarter, million the previous nicely $XX quarter.

the that’s dividend performance. think I based the think right on neighborhood levels to about

day – a maybe one higher a than that. double-digit, it’s low so And bit to we’ll be going

Our returner for us.

it. returns and want continue I invest think to to that’s terrific capital in

about the or think $X one right other, the one quarter any dividends. range I but think $X Wingspire this be direction million to could in is or So

Okay, you. great. Thank

Thank you.

Please proceed. Our is from Truist with Mark Securities. question next Hughes

you’ve net on do kind Yes, got out? thank balance – the of you. start will more good Good that if periods to How quarter third it coming on origination activity. With repayments? the in you like think morning. a Any investment sounds sense off

up mentioned to any of not make deal giving to one just Yes. deals deal. without impression. I sure flow I the these I’m today we our and that signed specific want couple speaking wrong

quarter. read into third origination in translating shouldn’t You into the that

quarter I’m now. we’re next the seeing it just X in that commenting signed closed might already doesn’t X get – flow now overnight. on in up the that’s It close deal months. getting third months, the doesn’t We’re

repayments. the So in here had moderate pickup third repayments, third we’re we in we a the the behind here in a the the third probably now, quarter. right a now right say, quarter, origination right landed running quarter, sitting where second I’d bit now, we just sitting in net-net, quarter, quarter, nice had

X But behind next right weeks. I’d the Now now, it. a running say, lot can we’re happen a over bit

modest running origination, quarter. on which a of we’re terms pace, probably In is

pickup not a decline net-net, a the in down. repayments, or a growth be to modest of origination, maybe portfolio and slightly slightly So significant bit or going a in in up

say the venture Yes, lines when to yes. cross? did Would you

never are really cross X.X lines target, and a going the to target. leverage we’ve leverage right? we’re targeting because So Mark, Well, got our X.XXx

are And than quite our mean drive of billion more so second deals repayments first quarter. originated are the $X – as what active. more a we’re we in quarter, Xx I than essence, platform, the We in our originations.

everything, seeing funds matching investing. for we’re targets ramping we’re the on, platform, a are within origination of any very to or specifically, kind given in we’re But leverage and as we’ve one that up match quarter, OBDC, living clear So been repayments. that

you modest to So if repayments, expect see origination. should modest get we

and repayments I think Now mean, because there’s at see to hovering companies some of exit there. refinance. to point – to I dare just out sort just say, I sponsors point, a for going are dramatic desire think deals of There’s third – pent-up return to of LPs be to the it’s lot lot some going in quarter. their you’re in pickup that not capital At there’s a I a,

point, up some at pick dramatically. quite it So will

live an possible there’s So net-net to environment probably close target. of we of lots still where be be that leverage origination, repayments to within and in X the but will as lots will as

sense? make that does So

do It the rephrase. meet would sure does. way be a I’ll better When to... lines

– it can’t happens. – when They’re kind repayments us new going again, up of quarter, when deal because closes stare you you’re me. happen it match every we’re if The I happen. at see you to mean they perfectly

But match quarters, we right X.X leverage. last We’ve the to are point in hovering that perfectly. for several can’t X.XXx that we’re point. where it You at that been basically up at

than optimal that. We of. us. to so be a level think higher care run the can returns. with which you that, that’s and for not view higher you There’s that about we our a But bondholders, we will some than help It have a bit bit too, prefer

you hurt bit lower run a it’s than think I that, returns. going your to if

the sweet we think so spot. just prefer kind And – it’s I of

Understood. the fees quarter. question, in other increase And the then one in

and I X significant? of was which alluded think you repayments. impact, and The the balance more to those amendments

repayments Mostly related refinancing. to or

the brand-new amendment. as as refinancing at it’s a characterized – it amendment But but anything treated accounting an amendment qualify perspective happening more on so an of as due from to an financing portfolio gets not for doing it Some that they’re a an GAAP, base. company, gets –

sort the our higher being in Yes. were amount that, that higher a would It add economics will repayments of we earn although I even of a up wound have was we this lucrative a quarter, than the mix. fees. guessed and from amendments for fees bit

third stay that if straight helping third level. shouldn’t probably we’re just repeat So some number. are or sort I for at seeing fees there penny of here that it our see, there not there I it’s fees again, two sitting now, right we’ll there’s same you won’t line the the repayments that, think as that of – even in are Again, extra across quarter, the but in it you but mean, early, about a exit just necessarily quarter.

Thank you.

Securities. with question Bryce Our from proceed. next Riley Please Rowe is B.

wanted to up morning. around to discussion Good the repayments. Maybe – Thanks. just follow on

Just the or be as of continue were your to might proactivity quarterly kind to course front kind more curious what of look normal in repayments on origination higher part we forward? if get of

the two so. that the do is of look, to but have performing to. what this the less repaid if company sure is get a to more going – your we tend I we to a credit us, not wouldn’t probably to in fundamentally, answer up certainly they a is or if – ability and challenged when – or be up name on sponsor I’m be They’re question decision not. what the is disappointed we we’re function Well, situations repaid those the

gotten healthy timetable a I sponsors deciding it their this activity but where exited So companies have mentioned the script, of company. sell just hope, it’s think to the and of in portfolio handful the grow on think own I we’ve company quarter, to the in times things refinance would interesting one approached I the their well-performing and acquisition. in the through when or wanted of a to when sponsor, is this past They year.

wise was company, had time a the in or maturity they a they X to environment didn’t the X but sell was where think it have years. But might one

but wait So to want sell. they’re being long quite to too prudent, don’t to they maturity, not the address ready

in head, those to us pay discussions. if to a for discussion to where another "Look, happy well-performing of business, engage like we’re it’s they’ll And It’s year so we’d very our there’s we’re engage say, no and they in And a runway it." gun constructive. so that willing

We credit. the it in well. been we’ve know Again,

not the can another and what have changing basket. terms and to our a we year which protection, are exposure, us review attractive or call We’re give increasing and typically include basically is fee, them spread, X, covenant is fulsome we’ll look of us the at. covenants in the think price of we things that tightening a adding Those the of giving menu to

months. really And private and not We just markets. it this the a of in done And It’s possible one it syndicated have it around firms turn equity you to not They weeks, the of that get done, is the and direct months even call can attributes in that great be It’s couple take possible. like because one get up, could lending. can us of done. conversation. can they could if

we that the a that is of lot the connectivity equity we this loyalty user private and with private friendliness of and something credit when well, think and with in builds company have, because do year X. to get firms so solution. And the it already and see next I is they to better it like economics exit loan that likely we to or which we we a keep And a like

I resume At that point, firms happened exit. of to private they’ll But activity of this the just the the in have to see type second that think going activity quarter, one we’re win-win. a you’re more and you’ll working with of so meantime, in is and ways And that. some see equity deal

Craig, curious that’s to or Just to more Or it, ongoing in be that maturities? get kind part is of is that And conversation... to are Or the is of firm front get being you the again, trying of of the is process? proactivity, it how dialogue? those word front using it? private that a in a equity dialogue proactive proactive Or

Yes. quarterly, the all – – We to time. to the certainly All saw every and about CFOs. covering our we sponsors the mean talking talking time, – I we’re talks And we’re we’re weekly. the team company

bank. their We’re

us. up a credit revolving sneaking them. give Nothing the provider. up We’re us is on They reporting. on sneaking dialogue. is ongoing It’s Nothing fluid

lenders is job know X are support. We their possible could Part and and times wait. options we these of make they sure art can have back forth, going to and our the what talk their ask There of to part what to is what they job discussions. weeks have available they decide of – is. and we spend to We

did just dialogue we digress our tight of ago. conference annual terrific. – with much, or partnerships of our it’s had one have to second Not level couple constant but not constant in a months just back is This We too forth a the It’s a and CFO Investor we that which our other. was companies. that Day,

York. for spent the to good event had with them CFOs, us. our who companies New day some separate of just whole a brought the CFOs and really We did content. We had XX We

to wait We problems. problems. want to We They have don’t for our are companies. don’t close

dialogue constant in We’re with them.

it. more Got me. one for Maybe

up on here revolving of markets plenty debt. line got availability extent Capital a You’ve kind of of higher have to recently. back the opened

Just how you’re note point? thinking maturity unsecured XX curious about at this April the

think – Yes. unfunded got I as mean, amount script, look, of significant the got of liquidity commitments. mentioned a in our we’ve I in I we’ve excess

the think options have that to We we And is elsewhere maturity we it. want be at way that opportunistic our about on so we’re looking platform.

here, can it issuing We we’ve got of that go or in take we successful out capacity. because been We’ve do revolver with the can unsecured. plenty

So we that have optionality.

economic We’ll so to what makes any And any we in with an decisions rush get as perspective market see respect it. the we’re not to in sense from closer. most make

time Thanks, Jonathan. y’all’s today. appreciate I Awesome.

Thank you.

for like the to question-and-answer would the of closing Craig over reached I back have end session. We to conference comments. our Packer turn

you thank Well, all.

Some great questions today.

the strong We’re really pleased of half by and stock encouraged to results the excited the for with and results year. keep movement the back delivering

us. with some and enjoys time everyone for day, spending hope their thanks So

you. This today’s conference. conclude will Thank

at disconnect your for and may participation. You you time, thank lines your this