OBDC II DRIP Dips 0.48% Following Merger Cancellation
Blue Owl Capital Corporation II, also known as OBDC II, has updated its dividend reinvestment plan price to $8.31, a 0.48% dip from the previous month’s $8.35. The non-traded business development company focuses on lending to U.S. middle-market companies.
The DRIP news comes on the heels of last month’s announcement to terminate the previously proposed merger of OBDC II with Blue Owl Capital Corporation (NYSE: OBDC).
Leadership for the companies cited market conditions as the reason for calling off the activity, though both companies plan to reevaluate alternatives in the future and act “in the best interests of shareholders.”
The previously planned stock-for-stock transaction would have combined the pair of BDCs into a single, publicly traded entity, OBDC, with an $18.9 billion portfolio across 239 portfolio companies – reinforcing its position as the second-largest publicly traded BDC behind Blue Owl Technology Finance Corp. (NYSE: OTF). In terms of immediate cost synergies, the merger was expected close in the first quarter of 2026 and generate approximately $5 million in operational cost savings in the first year.
Looking forward, OBDC II plans to reinstate its tender program in Q1 2026, subject to board approval. Since inception in 2017, OBDC II has delivered a nearly 80% cumulative net return and a 9.3% annualized net return, outperforming broadly syndicated loan and high yield indices, and every quarterly tender has been fully satisfied.
As of Sept. 30, 2025, OBDC II had investments in 190 portfolio companies with an aggregate fair value of $1.7 billion.
Blue Owl Credit Income Corp.
In other Blue Owl BDC news, Blue Owl Credit Income Corp. declared special distributions of $0.01 for the fourth quarter of 2025, payable on or before Jan. 31, 2026, to shareholders of record as of Dec. 31, 2025. This was a decrease from Q3 2025’s $0.0327 special distribution.
The average debt-to-equity leverage ratio during the month-to-date period ended Oct. 31, 2025, was 0.69x.
Also as of Oct. 31, the company had debt investments in 343 portfolio companies with an aggregate par value of $32.89 billion. Its portfolio consisted of 88.5% first lien debt investments, 4.6% second lien debt investments, 1.3% unsecured debt investments, 0.4% specialty finance debt investments, 1.4% preferred equity investments, 0.8% common equity investments, 1.9% specialty finance equity investments, and 1.1% joint ventures. As of the same timeframe, 98.7% of the debt investments in the BDC’s portfolio were at floating rates.
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