OBDC Q1 2026 Earnings Call Transcript

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DATE

May 7, 2026

CALL PARTICIPANTS

• Chief Executive Officer — Craig Packer

• President — Logan Nicholson

• Chief Financial Officer — Jonathan Lamm

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Full Conference Call Transcript

Yesterday, OBDC issued its fiscal results for the 4th ended 03/31/2026, reporting adjusted nett concern income of $0.31 per stock and nett plus worth per stock of $14.41. All materials referenced during today's call, including the net property release, net presumption and 10-Q, are disposable connected the News and Events conception of OBDC's website. With that, I volition crook the telephone implicit to Craig.

Craig Packer: Thanks, Mike, and bully morning, everyone. Thanks for joining us. I would similar to commencement by highlighting that our recognition show remains strong, with nary caller non-accruals, unchangeable borrower performance, and underlying show successful enactment with caller quarters, and we proceed to consciousness assured successful the underlying recognition prime of our portfolio. I would besides similar to admit that the archetypal 4th was a much challenging situation for OBDC from an net perspective. Lower basal rates and tighter marketplace spreads weighed connected our results, reflecting headwinds that person been gathering implicit the past twelvemonth and were afloat realized this quarter.

Given the marketplace uncertainty this quarter, the woody situation was besides slower, which led to minimal interest and repayment income, which was astatine a three-year low. In addition, we operated with little leverage and preserved capital, which has positioned america good for the much charismatic accidental acceptable we are starting to see. As we person highlighted connected caller net calls, our dividend has been a cardinal absorption arsenic we person watched these dynamics unfold, and we judge this is the close infinitesimal to code our dividend. As a reminder, erstwhile we went nationalist successful 2019, we acceptable our dividend astatine $0.31 per stock and maintained it determination for much than 3 years portion rates were low.

When rates began to emergence successful 2022, we accrued the dividend to bespeak the higher net powerfulness of the portfolio and introduced the supplemental dividend model successful an effort to supply shareholders with a predictable basal dividend portion distributing excess income supra that level. Similar to what a fig of our peers person precocious done, we are reducing the basal dividend for the 2nd 4th backmost to $0.31 per share, representing an approximate 8.6% output connected nett plus worth and an implicit 10% output astatine the existent stock price. We judge this is the due level fixed the guardant net powerfulness of the portfolio, peculiarly with spreads present widening and the complaint situation appearing much stable.