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KBRA Assigns BBB Rating on Owl Rock Capital Corporation’s Senior Unsecured Notes due 2024

April 2, 2019

NEW YORK--(BUSINESS WIRE)--Apr 2, 2019--Kroll Bond Rating Agency (KBRA) assigns a BBB rating to Owl Rock Capital Corporation’s (“ORCC” or “the Company”) proposed $300 million senior unsecured notes maturing 2024 (“the Notes”). The Outlook is Stable. ORCC expects to use the proceeds to paydown a portion of its outstanding bank loans. The Notes rank equally with existing and future senior unsecured notes issued by ORCC.

Formed in October 2015 as a Maryland Corporation, ORCC is a business development company (BDC) that specializes in providing capital in the form of senior secured first lien, unitranche and second lien debt to private middle-market companies. The Company raised roughly $5.5 billion of equity commitments. As of December 31, 2018, the ORCC’s investment portfolio stood at approximately $5.8 billion at fair market value with 78.7% consisting of first lien debt investments. The investment portfolio included 73 companies with an average investment size of approximately $79.2 million based on fair market value.

ORCC is externally managed by Owl Rock Capital Advisors, LLC and was founded by Douglas Ostrover, Marc Lipschultz, and Craig Packer, all veterans of the industry. ORCC is regulated as a BDC under the Investment Company Act of 1940 (1940 Act) and has elected to be treated as an RIC for U.S. federal income-tax purposes.

The BBB rating of ORCC reflects the Company’s strong capital base, appropriate leverage metrics, which are restricted by BDC requirements and a solid investment team with decades of experience in leverage finance. As of December 31, 2018, ORCC’s leverage was 0.79 times. The Company has not sought unitholder approval to increase leverage as permissible under the SBCAA, which was enacted in March 2018. The Company’s strengths are counterbalanced by ORCC’s limited operating history, illiquid investments and the Company’s mostly secured funding profile.

The ratings are assigned using KBRA’s Global Finance Company Rating Methodology, published November 28, 2017.

Related Publications : (available at www.kbra.com )

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About KBRA and KBRA Europe

KBRA is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider and is a certified Credit Rating Agency (CRA) by the European Securities and Markets Authority (ESMA). Kroll Bond Rating Agency Europe Limited is registered with ESMA as a CRA.

View source version on businesswire.com:https://www.businesswire.com/news/home/20190402006101/en/

CONTACT: Analytical:

Teri Seelig, Director

(646) 731-2386

tseelig@kbra.com

Boris Alishayev, Director

(646) 731-2384

balishayev@kbra.com

Marjan Riggi, Managing Director

(646) 731-2354

mriggi@kbra.com

KEYWORD: UNITED STATES NORTH AMERICA NEW YORK

INDUSTRY KEYWORD: PROFESSIONAL SERVICES BANKING FINANCE

SOURCE: Kroll Bond Rating Agency

Copyright Business Wire 2019.

PUB: 04/02/2019 05:42 PM/DISC: 04/02/2019 05:42 PM

http://www.businesswire.com/news/home/20190402006101/en