Blue Owl Capital Corp (OBDC)

Adjusted NII per share of $0.34 covers the declared total dividend of $0.33 (base $0.31 plus supplemental $0.02) at approximately 103%, placing coverage squarely in the 95–105% range. The company demonstrates stable dividend management with a consistent base dividend of $0.31 and flexible supplemental dividends ($0.02 in Q2 2026 and Q2 2025), which aligns with the rubric's description of supplementals flexing with rates. Non-accruals at 0.8% of fair value are low and stable, and there is no evidence of recent dividend cuts or deteriorating coverage trends over the visible periods.

OBDC demonstrates leverage inside acceptable parameters with net debt-to-equity of 1.11x as of June 30, 2026, down from 1.17x a year prior, and management notes leverage at a two-year low. The funding mix is predominantly unsecured at 66.4% versus 33.6% secured borrowings, with $5.3 billion of unsecured notes and a recently amended and extended revolving credit facility. The company maintains strong liquidity with $238 million in cash and $4.2 billion of undrawn capacity. However, the data does not explicitly confirm investment-grade ratings or a fully laddered maturity schedule, preventing a perfect 5 score; the company appears well-positioned within band parameters but lacks visible confirmation of all tier-5 characteristics.

Non-accruals at 0.8% of fair value are well below the 1% threshold for a score of 5, indicating strong credit quality. The earnings release provides no disclosure of PIK income as a percentage of total income, preventing full assessment of that rubric component. Net realized losses of $0.22 per share in Q2 2026 and $0.21 adjusted represent recurring quarterly losses, which is a negative signal. However, the company demonstrates solid operational performance with adjusted NII of $0.34 per share, dividend coverage at 0.94, and stable portfolio trends, placing performance between the 4 and 5 anchors.

OBDC demonstrates strong portfolio quality with 73.2% first-lien senior secured debt investments, exceeding the 80% threshold for a score of 5 but solidly within the 60–80% range for a score of 3. The portfolio is well-granularized across 229 portfolio companies with an average investment size of $65.3 million, indicating low concentration risk well below the 20% top-10 threshold. Non-accruals at 0.8% of fair value are minimal, and the portfolio spans 30 industries with stable operating trends. The primary constraint preventing a score of 5 is the 4.5% second-lien exposure and 2.5% unsecured debt, which moderately dilute the first-lien concentration, though the overall credit profile remains defensive with 78.8% senior secured debt investments and 96% floating-rate exposure providing rate protection.

OBDC operates under external management by Blue Owl Capital Advisors with a standard fee structure typical of BDCs. NAV per share has declined from $15.03 (June 2025) to $14.26 (June 2026), representing a 5.1% decline over one year, placing it between the anchor points of flat and persistently declining. The company demonstrates solid operational performance with adjusted NII of $0.34 per share and dividend coverage at 0.94, but the fee structure and modest NAV erosion align with a score-3 profile of standard external management with hurdle provisions and roughly flat-to-slightly-declining NAV trajectory.

Mechanical valuation (D-07): current ratio 0.76 vs 10-point own history, percentile rank 0.00.