Blue Owl Technology Finance Corp. Files 10-Q for Q1 2024

TL;DR

<b>Blue Owl Technology Finance Corp. filed its Q1 2024 10-Q, detailing its diverse investment portfolio including significant debt instruments.</b>

AI Summary

Blue Owl Technology Finance Corp. (OTF) filed a Quarterly Report (10-Q) with the SEC on May 10, 2024. Filing covers the period ending March 31, 2024. Includes investments in unaffiliated, affiliated non-controlled, and affiliated controlled issuers. Details specific debt instruments such as Peraton Corp.'s second lien senior secured loan. Lists Anaplan, Inc. and Avalara, Inc. with first lien senior secured loans and revolving loans. Mentions Armstrong Bidco Limited's first lien senior secured GBP term loan.

Why It Matters

For investors and stakeholders tracking Blue Owl Technology Finance Corp., this filing contains several important signals. Provides insight into the company's lending activities and the types of debt it holds across various sectors. Highlights the company's exposure to both public and private companies through secured loans and revolving credit facilities.

Risk Assessment

Risk Level: medium — Blue Owl Technology Finance Corp. shows moderate risk based on this filing. The filing details numerous specific debt instruments, indicating a complex portfolio that could carry inherent risks related to borrower performance and market conditions.

Analyst Insight

Review the specific loan details and borrower profiles to assess credit risk and potential impact on Blue Owl's financial performance.

Key Numbers

• 2024-03-31 — Reporting Period End Date (10-Q filing)
• 2024-05-10 — Filing Date (10-Q filing)

Key Players & Entities

• Blue Owl Technology Finance Corp. (company) — Filer
• Peraton Corp. (company) — Borrower of second lien senior secured loan
• ManTech International Corporation (company) — Borrower of first lien senior secured loans
• Anaplan, Inc. (company) — Borrower of first lien senior secured loan
• Avalara, Inc. (company) — Borrower of first lien senior secured loan
• Armstrong Bidco Limited (company) — Borrower of first lien senior secured GBP term loan
• Catalis Intermediate, Inc. (company) — Borrower of first lien senior secured loan
• CivicPlus, LLC (company) — Borrower of first lien senior secured loan

FAQ

Risk Factors

• Investment Portfolio Risk [medium — financial]: The company's investments are subject to various risks, including credit risk, market risk, and liquidity risk, which could adversely affect its financial condition and results of operations.
• Interest Rate Risk [medium — financial]: Changes in interest rates could impact the value of the company's investments and its net investment income.
• Market Volatility [medium — market]: Adverse market conditions or economic downturns could negatively affect the performance of the company's portfolio companies and its overall financial results.

Industry Context

Blue Owl Technology Finance Corp. operates within the financial services sector, specifically focusing on technology-related lending and investment. This sector is characterized by innovation and rapid growth, but also by significant competitive pressures and evolving regulatory landscapes.

Regulatory Implications

As a financial entity, the company is subject to regulations from the Securities and Exchange Commission (SEC) and potentially other financial regulatory bodies, impacting its reporting, operations, and investment activities.

What Investors Should Do

1. Analyze the specific loan portfolio composition and borrower creditworthiness.
2. Assess the impact of current interest rate environments on the company's investment yields and debt costs.
3. Monitor regulatory filings for any changes in compliance requirements or disclosures.

Key Dates

• 2024-03-31: Quarterly Period End — End of the reporting period for the 10-Q filing.
• 2024-05-10: Filing Date — Date the 10-Q was officially filed with the SEC.

Year-Over-Year Comparison

This is the initial 10-Q filing for the period ending March 31, 2024, following the company's establishment or a prior reporting period.

Key Financial Figures

• $0.01 — had 208,464,789 shares of common stock, $0.01 par value per share, outstanding. i

Filing Documents

• ortfc-20240331.htm (10-Q) — 5932KB
• tech-exhibit1011q24.htm (EX-10.1) — 13KB
• tech-exhibit3111q24.htm (EX-31.1) — 10KB
• tech-exhibit3121q24.htm (EX-31.2) — 10KB
• tech-exhibit3211q24.htm (EX-32.1) — 5KB
• tech-exhibit3221q24.htm (EX-32.2) — 5KB
• 0001747777-24-000009.txt (&nbsp;) — 22765KB
• ortfc-20240331.xsd (EX-101.SCH) — 59KB
• ortfc-20240331_cal.xml (EX-101.CAL) — 54KB
• ortfc-20240331_def.xml (EX-101.DEF) — 394KB
• ortfc-20240331_lab.xml (EX-101.LAB) — 618KB
• ortfc-20240331_pre.xml (EX-101.PRE) — 515KB
• ortfc-20240331_htm.xml (XML) — 5396KB

Notes to Consolidated Financial Statements (Unaudited)

Notes to Consolidated Financial Statements (Unaudited) 45 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 77 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 118 Item 4.

Controls and Procedures

Controls and Procedures 119 PART II OTHER INFORMATION 120

Legal Proceedings

Item 1. Legal Proceedings 120

Risk Factors

Item 1A. Risk Factors 120

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 120

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 120

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 120

Other Information

Item 5. Other Information 120

Exhibits

Item 6. Exhibits 121

Signatures

Signatures 122 ii CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS This report contains forward-looking statements that involve substantial risks and uncertainties. Such statements involve known and unknown risks, uncertainties and other factors and undue reliance should not be placed thereon. These forward-looking statements are not historical facts, but rather are based on current expectations, estimates and projections about Blue Owl Technology Finance Corp. (the "Company," "we" or "our"), our current and prospective portfolio investments, our industry, our beliefs and opinions, and our assumptions. Words such as "anticipates," "expects," "intends," "plans," "will," "may," "continue," "believes," "seeks," "estimates," "would," "could," "should," "targets," "projects," "outlook," "potential," "predicts" and variations of these words and similar expressions are intended to identify forward-looking statements. These statements are not guarantees of future performance and are subject to risks, uncertainties and other factors, some of which are beyond our control and difficult to predict and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements, including without limitation: an economic downturn could impair our portfolio companies' ability to continue to operate, which could lead to the loss of some or all of our investments in such portfolio companies; an economic downturn could disproportionately impact the companies that we intend to target for investment, potentially causing us to experience a decrease in investment opportunities and diminished demand for capital from these companies; the impact of elevated interest and inflation rates, ongoing supply chain and labor market disruptions, including those as a result of strikes, work stoppages or accidents, instability in the U.S. and international banking systems, and the risk of recession or a shutdown of government services could imp

CONSOLIDATED FINANCIAL INFORMATION

PART I. CONSOLIDATED FINANCIAL INFORMATION

Consolidated Financial Statements

Item 1. Consolidated Financial Statements Blue Owl Technology Finance Corp. Consolidated Statements of Assets and Liabilities (Amounts in thousands, except share and per share amounts) March 31, 2024 (Unaudited) December 31, 2023 Assets Investments at fair value Non-controlled, non-affiliated investments (amortized cost of $ 5,747,227 and $ 5,841,371 , respectively) $ 5,720,662 $ 5,793,420 Non-controlled, affiliated investments (amortized cost of $ 316,868 and $ 296,593 , respectively) 294,472 272,093 Controlled, affiliated investments (amortized cost of $ 75,262 and $ 75,262 , respectively) 62,054 66,509 Total investments at fair value (amortized cost of $ 6,139,357 and $ 6,213,226 , respectively) 6,077,188 6,132,022 Cash 499,838 469,017 Interest receivable 55,243 44,188 Dividend income receivable 8,130 5,842 Prepaid expenses and other assets 28,794 1,114 Total Assets $ 6,669,193 $ 6,652,183 Liabilities Debt (net of unamortized debt issuance costs of $ 33,146 and $ 35,064 , respectively) $ 2,954,893 $ 2,947,329 Management fee payable 13,991 14,252 Distribution payable 76,360 76,883 Incentive fee payable 16,860 17,915 Payables to affiliates 2,095 1,119 Payable for investments purchased — 24,163 Accrued expenses and other liabilities 39,981 40,528 Total Liabilities $ 3,104,180 $ 3,122,189 Commitments and contingencies (Note 7) Net Assets Common shares $ 0.01 par value, 500,000,000 shares authorized; 208,464,789 and 207,252,229 shares issued and outstanding, respectively $ 2,085 $ 2,073 Additional paid-in-capital 3,301,258 3,280,766 Accumulated undistributed (overdistributed) earnings 261,670 247,155 Total Net Assets $ 3,565,013 $ 3,529,994 Total Liabilities and Net Assets $ 6,669,193 $ 6,652,183 Net Asset Value Per Share $ 17.10 $ 17.03 The accompanying notes are an integral part of these consolidated financial statements. 3 Blue Owl Technology Finance Corp. Consolidated Statements of Operations (Amounts in thousands, ex

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View this 10-Q filing on SEC EDGAR