Redemptions Push OCREDIT Leverage to 0.98x While NAV Holds at $25.97

T. Rowe Price OHA Select Private Credit Fund’s leverage climbed to nearly a full turn of debt-to-equity in July, the highest level of the year so far, as the nontraded business development company continues fielding redemption requests even as its per-share net asset value and monthly distribution held steady.

The fund, known by its ticker OCREDIT, declared a gross August distribution of $0.20 per share across all three share classes, unchanged from recent months. The distributions are payable on or about Sept. 30 to shareholders of record as of Aug. 31, either in cash or reinvested through the fund’s distribution reinvestment plan.

OCREDIT’s net asset value update, covering the period through July 31, shows NAV per share of $25.97, up a penny from June’s $25.96. But aggregate NAV fell to $1.6 billion from $1.64 billion in June – a 2.4% drop in one month – even as the fair value of the fund’s investment portfolio rose slightly to approximately $3.1 billion. Debt outstanding grew to $1.57 billion, pushing the debt-to-equity ratio to 0.98x, up from 0.93x in June and 0.91x in April.

The combination – essentially flat per-share NAV, declining aggregate NAV, and rising leverage – points to continued net redemptions rather than any deterioration in asset values. Total shares outstanding across all three classes, net of repurchases, fell to roughly 59.8 million as of the fund’s July 1 subscription date from about 61.1 million on May 1, before ticking back up slightly to approximately 60.1 million by early August. Class D shares saw the sharpest swing, dropping from roughly 7.36 million in May to 6.36 million in July.

Previously reported by AltsWire, a May 8 report found OCREDIT’s second-quarter tender offer drew no oversubscription even as nontraded BDC sales fell nearly 59% year over year industry-wide. In July, OCREDIT priced $400 million of unsecured notes, extending debt maturities to 2031, even as leverage climbed. And more recently, OCREDIT , alongside nontraded BDCs from Bain Capital and Fidelity, opened new tender offers for the third quarter.

The fund is conducting a continuous public offering of up to $2.5 billion in shares. As of the Aug. 3 subscription date, the fund had issued approximately 49 million Class I shares for $1.34 billion in consideration, 4.6 million Class S shares for $126.1 million, and 6.4 million Class D shares for $173.9 million, net of repurchases.

T. Rowe Price OHA Select Private Credit Fund is a nontraded BDC formed as a joint venture between T. Rowe Price and Oak Hill Advisors, with private credit investments across more than 130 portfolio companies in what the firm describes as a diversified portfolio.

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