KBRA Assigns BBB Rating on Owl Rock Capital Corporation’s $425 Mil. 4.00% Senior Unsecured Notes due 2025

NEW YORK–(BUSINESS WIRE)–Kroll Bond Rating Agency (KBRA) assigns a BBB rating to Owl Rock Capital Corporation’s (“ORCC” or “the Company”) $425 million 4.00% senior unsecured notes maturing March 30, 2025 (“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 publicly traded 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. ORCC became a publicly listed company in July 2019 and as of June 30, 2019 was the third largest publicly traded BDC in terms of total investments at fair market value. The Company’s investment portfolio stood at approximately $7.24 billion at fair market value with 81% consisting of first lien debt investments. The investment portfolio included 90 companies across 27 industries.

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 June 30, ORCC’s leverage was 0.28 times but is expected to normalize between 0.65x and 0.80x with a growing investment portfolio. As the Company has not sought shareholder or board approval to increase leverage as permissible under the SBCAA, ORCC will maintain leverage within the 1:1 regulatory guideline at this time. The Company’s strengths are counterbalanced by ORCC’s limited operating history, illiquid investments and 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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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.


Analytical Contacts:

Teri Seelig, Director

(646) 731-2386


Boris Alishayev, Director

(646) 731-2384


Marjan Riggi, Senior Managing Director

(646) 731-2354


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