The shareholders of Owl Rock Capital approved the reduction of the company’s minimum asset coverage ratio to 150% from 200%. The change was voted on at the company’s annual meeting of shareholders held on June 8 and is effective as of June 9. The company plans to target a debt to equity range of 0.90x to 1.25x and will maintain its direct origination strategy with no change to its investment philosophy.
“We welcome our shareholders’ approval of this step, which will give us increased capacity to pursue our strategy of lending to strong upper-middle market companies,” Craig W. Packer, CEO of Owl Rock Capital, said. “This greater flexibility will enhance our ability to support our existing portfolio companies and selectively originate new investments, which in turn will allow us to deliver attractive risk-adjusted returns to our shareholders. The increased cushion to the regulatory limit will help us to continue to prudently manage risk and maintain a very strong balance sheet.”
This change was made pursuant to Section 61(a)(2) of the Investment Company Act of 1940, as amended. Owl Rock Capital shareholders also reelected Brian Finn and Eric Kaye to the company’s board of directors and ratified the selection of KPMG as the company’s independent registered public accounting firm for the fiscal year ending Dec. 31, 2020.
Owl Rock Capital is a specialty finance company focused on lending to U.S. middle-market companies. As of March 31, 2020, the company had investments in 101 portfolio companies with an aggregate fair value of $8.9 billion.
