Blue Owl Capital Corporation (NYSE: OBDC) and Blue Owl Capital Corporation III (NYSE: OBDE) have received recommendations from leading independent proxy advisory firms, Institutional Shareholder Services (ISS) and Glass Lewis & Co., regarding their pending merger. ISS and Glass Lewis have both recommended that OBDE shareholders vote “for” the pending merger between OBDC and OBDE, and that OBDC shareholders vote “for” both proposals associated with the merger at upcoming special meetings on January 8, 2025.
ISS stated in its report dated January 2, 2025, that “the strategic rationale for the merger appears sound. Specifically, the combined company will have increased scale that may improve trading dynamics and long-term expense savings from operating synergies.” Glass Lewis, in its report dated December 24, 2024, mentioned, “Given their largely similar investment mandates, portfolio strategies, and risk-return profiles, we believe a merger of these two BDCs should be relatively straightforward to execute.”
Craig W. Packer, the Chief Executive Officer of OBDC and OBDE, expressed pleasure at the support from ISS and Glass Lewis, emphasizing that the merger is expected to significantly enhance OBDC’s scale and diversification, resulting in the second-largest publicly traded BDC by total assets.
As of September 30, 2024, OBDC had investments in 219 portfolio companies with an aggregate fair value of $13.4 billion, while OBDE had investments in 185 portfolio companies with an aggregate fair value of $4.2 billion. Shareholders are reminded that their vote is important regardless of the number of shares they own, and they are urged to vote by one of the methods described in the proxy statement before 11:59 p.m. Eastern Time on January 7, 2025.
For additional information on the proposed merger, shareholders are directed to the joint prospectus and proxy statement, which can be found at www.proxyvote.com. Shareholders with questions about the joint prospectus and proxy statement or about voting their shares should contact the companies’ proxy solicitor, Broadridge.
The merger is expected to create the second-largest publicly traded BDC by total assets, which signifies a significant increase in scale and diversification for the combined entity. The market has reacted to these announcements by moving the company's shares 0.2% to a price of $15.3. For the full picture, make sure to review Blue Owl Capital's 8-K report.
