Blue Owl Credit Income NAV Rises 1% in Q3; PIK Share Eases to 6.3%
By Staff
Blue Owl Credit Income Corp.’s net asset value per Class I share rose about 1% in the third quarter to $9.17 as of Sept. 30, from $9.08 as of June 30, the nontraded business development company reported. Class D NAV rose to $9.15 from $9.06, and Class S NAV rose to $9.14 from $9.05. At the end of 2025, NAV per share was $9.34 for Class I, $9.33 for Class D, and $9.32 for Class S.
Net assets declined to $17.98 billion from $18.43 billion as of June 30 as repurchases continued. The BDC accepted about 29.8% of the roughly 341.4 million shares tendered in its third-quarter offer on a pro rata basis, paying about $931.1 million through promissory notes. Blue Owl’s two nontraded BDCs paid a combined $1.07 billion in third-quarter tenders, as AltsWire reported.
Year to date through September, total returns were 5.2% for Class I, 4.9% for Class D, and 4.4% for Class S, excluding upfront sales loads. Class I shares returned 3.3% for the quarter, and the annualized distribution rate for Class I shares was 9.2% as of Sept. 30, according to the company. Using the same method, the rates were about 8.9% for Class D and 8.3% for Class S, net of shareholder servicing fees, by AltsWire’s calculation. On Nov. 3, the board approved monthly gross distributions of $0.0701 per share for each class through February 2027.
Net investment income was $429.5 million for the quarter, up from $425.6 million in the second quarter, as total investment income rose to $856.9 million from $841.5 million. Payment-in-kind income made up 6.3% of total investment income in the third quarter, down from 6.6% in the second quarter but up from 5.7% a year earlier.
The fund’s portfolio of 328 companies had a fair value of $35.11 billion as of Sept. 30, down from $35.69 billion three months earlier. First-lien debt made up 86.7% of the portfolio at fair value, and the fair value of its debt investments was 97.6% of principal. Investments in two portfolio companies were on non-accrual status as of Sept. 30, representing 0.2% of the portfolio at fair value and 0.4% at amortized cost, down from 0.3% and 0.6% at the end of 2025. Net leverage was 0.91 times debt to equity, within the fund’s target range of 0.90 to 1.25 times, and the BDC reported $11.9 billion of available liquidity, including cash, liquid Level 2 assets, and undrawn debt.
After the quarter, through Nov. 2, the BDC raised about $28.2 million in gross proceeds from new share sales and accepted another $27.8 million in subscriptions pending its NAV determination.
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