Blue Owl Capital Corporation

Good morning, everyone, and welcome to the Blue Owl Capital Corporation's fourth quarter and full year 2025 earnings call. As a reminder, this call is being recorded. At this time, I'd like to turn the call over to Mike Mastichio, head of BDC Investor Relations. Mike, please go ahead.

Thank you, Operator, and welcome to Blue Owl Capital Corporation's fourth quarter and full year 2025 earnings conference call. Yesterday, OBDC issued its earnings release and posted an earnings presentation for the fourth quarter and full year ended December 31st, 2025. These should be reviewed in connection with the company's 10-K filed yesterday with the SEC. All materials referenced during today's call, including the press release, presentation, and 10-K, are available on the news and events section of the company's website at blueowlcapitalcorporation.com. Joining us on the call today are Craig Packer, Chief Executive Officer, Logan Nicholson, President, and Jonathan Lamb, Chief Financial Officer. I'd like to remind listeners that remarks made during today's call may contain forward-looking statements which are not guarantees of future performance or results and involve a number of risks and uncertainties that are outside of the company's control. Actual results may differ materially from those in forward-looking statements as a result of a number of factors, including those described in OBDC's filings with the SEC. The company assumes no obligation to update any forward-looking statements. We'd also like to remind everyone that we'll refer to non-GAAP measures on the call, which are reconciled to GAAP figures in our earnings presentation available on the Events in a Presentation section of our website. Certain information discussed on this call and in the company's earnings materials, including information related to portfolio companies, was derived from third-party sources and has not been independently verified. The company makes no such representations or warranties with respect to this information. With that, I'll turn the call over to Craig.

Thanks, Mike, and good morning, everyone. We appreciate your joining us today. There's been a lot of recent investor attention on OBDC and the other BDCs that we manage, as well as the private credit industry more broadly. Much of this focus has been on credit quality and whether fundamentals are holding up. At a certain level, we understand investor concerns as the industry has grown significantly in the last few years. So I'd like to start off by reassuring you that credit quality and OBDC remain strong and we expect that to continue. Before we get into our results, I want to address our future plans for OBDC2 following the termination of the proposed merger with OBDC that we announced last quarter. OBDC2 is a nine-year-old private fund which was required to eventually consider a liquidity event to return capital to shareholders. We believed a merger into OBDC was the most logical path due to the high asset overlap and benefits of scale. However, in light of the market reaction and working with our board, we concluded the proposed merger no longer made sense, so we terminated it. Since then, OBDC2 has been working to determine the best path forward. Yesterday, we announced a sale of a portfolio of OBDC2 assets at book value, totaling $600 million, or approximately 35% of the fund's total assets, and plan to distribute most of those proceeds to OBDC2 shareholders. We believe this outcome prioritizes shareholders by providing significant near-term liquidity for OBDC2 investors at attractive valuations. This asset sale process initially focused on OBDC2, but given significant demand from several high-quality institutional investors, we expanded the process to opportunistically sell modest amounts of additional assets from two other funds, including OBDC. In total, $1.4 billion of assets are being sold, including $400 million from OBDC. These sales are being executed at exactly our book value and at an average price of 99.7. Not only is this a strong endorsement of our valuation process and NAV, but it further underscores the high quality of our portfolios. I want to emphasize this. Most industry private secondary sales are almost always executed at a discount to book value. And we are pleased to execute this transaction at our marks across approximately 130 names to a very select group of high quality leading institutional buyers. We believe this sale sends a clear signal as to the strength of our portfolio and the quality and integrity of our marks. To be clear, this is a partial strip sale across OBDC Holdings where we are selling small pieces of over 70 individual loans at an average size of $5 million per position or approximately 5% of each position size. This transaction modestly increases OBDC's portfolio diversity and reduces leverage by approximately 0.05 times, positioning OBDC with greater flexibility to deploy capital into the most attractive risk-adjusted opportunities. Moving forward, we are not changing our philosophy. As a buy and hold lender, we are not in the regular business of selling our private assets. In this situation, we started out by focusing on returning capital to OBDC2 shareholders, and we received so much additional demand that we decided to fine-tune the OBDC portfolio from a position of strength. Alongside these actions, we were also active in supporting OBDC through our share repurchase program. Against the backdrop of volatility post-merger and the broader industry sell-off, we repurchased $148 million of stock and an average discount to net asset value of 14%. These purchases were creative to NAV for Share and reflect our conviction in OBDC's long-term value. Taken together, we believe that this highlights disciplined capital allocation. We monetized assets at book value and an average price of 99.7 and repurchased shares at 86% of book value. reinforcing our view that the trading discount does not reflect the underlying strength of the portfolio. Now turning to our performance. In the fourth quarter, we delivered solid results supported by the continued strength of our portfolio, which generated adjusted NII per share of $0.36, which represents an ROE of 9.7%. These results are consistent with last quarter, as headwinds from lower base rates were offset by positive one-time items. NAV as of quarter end was $14.81, down modestly from the prior quarter, primarily reflecting write-downs on a small handful of watchlist names partially offset by accretive share repurchases. As we look back at 2025, we believe OBDC executed well amid a shifting rate environment. we closed the OBDE merger, increasing our scale and establishing OBDC as the second largest publicly traded BDC in the market. Throughout the year, we prioritized optimizing our capital structure to reduce costs and enhance flexibility while improving our credit profile, highlighted by our very recent Moody's upgrade in January to BAA2. On the origination front, in 2025, we deployed more than $4 billion at OBDC and $45 billion across the Blue Owl direct lending platform, while maintaining our disciplined approach to credit selection. Over the past year, we selectively broadened our deal funnel by leveraging Blue Owl's expanded capabilities in alternative and asset-based credit, as well as digital infrastructure, to access attractive risk-adjusted opportunities, adding accretive, non-correlated returns. All the while, our portfolio companies maintain their solid credit quality with revenue and EBITDA growth accelerating in the second half of the year. We are very pleased with our performance over the past year, and we entered 2026 on solid footing, with continued confidence in the quality and resilience of the portfolio. Now I will turn the call to Logan to provide more detail on our investment activity and credit performance.