Business Context and Reporting Period
This Form 8-K filing by Owl Rock Capital Corporation (referred to in the metadata as Blue Owl Capital Corp) covers events occurring on December 1, 2017, with the report filed on December 4, 2017. The filing details a material definitive agreement regarding the company's credit facilities.
Key Financial Metrics
The filing focuses on liquidity and debt capacity rather than operating performance metrics such as revenue or profit.
- Credit Facility Increase: Aggregate commitments under the subscription credit facility increased from $850 million to $900 million.
- New Commitment: ZB, N.A. dba California Bank & Trust (CB&T) provided a $50 million commitment via an accordion feature.
- Maximum Capacity: The facility retains an accordion feature allowing for a maximum size of $900 million under certain circumstances.
Material Changes Versus Prior Period
The primary change is the expansion of the company's borrowing capacity. The aggregate commitment under the facility was raised by $50 million following the entry into a Lender Joinder Agreement with CB&T. This amendment builds upon a previous amendment dated November 2, 2017.
Outlook, Risks, and Contingencies
Contingency on Wells Fargo Commitment: The facility includes a provision for an automatic $50 million reduction of the commitment from Wells Fargo Bank, National Association, effective January 2, 2018. This reduction will occur unless Wells Fargo agrees to continue its increased commitment.
Management Commentary: The filing states there were no other amendments to the terms of the facility beyond the commitment increase and the Wells Fargo contingency.
Key Facts for Investor Verification
- Verify whether Wells Fargo has agreed to maintain its commitment to prevent the automatic $50 million reduction scheduled for January 2, 2018.
- Confirm the total outstanding borrowings under the facility to assess current leverage relative to the new $900 million cap.
- Review the full text of the Lender Joinder Agreement (Exhibit 10.1) for specific covenants or conditions attached to the new $50 million commitment from CB&T.