Business Context and Reporting Period
Company: Owl Rock Capital Corporation (Note: Metadata referenced "Blue Owl Capital Corp," but the filing identifies the registrant as Owl Rock Capital Corporation).
Filing Type: Form 8-K (Current Report).
Reporting Period: December 20, 2018 (Event Date) / December 21, 2018 (Filing Date).
Context: The Company, an emerging growth company, reported the entry into a material definitive agreement regarding its secured credit facility.
Key Financial Metrics
This filing does not provide specific numerical values for revenue, profit, cash flow, margins, or total debt levels. The filing focuses on the structural terms of a credit facility amendment rather than periodic financial performance results.
Material Changes Versus Prior Period
On December 20, 2018, ORCC Financing II LLC, a subsidiary of the Company, entered into Amendment No. 2 to its Credit Agreement. Key changes include:
- Key Person Event Definition: The definition was modified. A Key Person Event occurs if certain personnel leave and the Administrative Agent does not approve a replacement. This event would terminate the Borrower's ability to draw on the facility or invest in new loan assets.
- Asset Sales and Distributions: The facility was modified to permit the Borrower to sell assets and distribute proceeds to the Company in connection with a permitted securitization of loan assets.
- Repayment Conditions: The amendment includes conditions requiring the Borrower to repay a portion of outstanding revolving loans under the Secured Credit Facility in certain circumstances related to asset sales.
Guidance, Outlook, and Risks
Management Commentary: The filing states that borrowings of ORCC Financing II are considered borrowings of Owl Rock Capital Corporation for compliance with asset coverage requirements under the Investment Company Act of 1940.
Risks and Contingencies: The primary risk highlighted is the "Key Person Event" clause. If triggered, it restricts the Company's ability to utilize the credit facility for new investments or draws. The filing notes that the summary is qualified by the underlying agreement filed as an exhibit.
Guidance: No forward-looking financial guidance or outlook was provided in this specific filing.
Important Facts for Investor Verification
- Verify the specific identities of the "Key Persons" defined in the amended Credit Agreement to assess concentration risk.
- Review the full text of Amendment No. 2 (Exhibit 10.1) to understand the specific conditions triggering mandatory repayment of revolving loans.
- Confirm the current status of the Secured Credit Facility and whether any Key Person Events have occurred since the amendment date.
- Note the distinction between the metadata name ("Blue Owl") and the legal registrant name ("Owl Rock Capital Corporation") to ensure correct entity tracking.