T. ROWE PRICE OHA SELECT PRIVATE CREDIT FUND ANNOUNCES SEPTEMBER 30, 2024 FINANCIAL RESULTS AND DECLARED TOTAL DISTRIBUTIONS OF $0.84 PER SHARE IN Q3 2024
NEW YORK, Nov. 7, 2024 /PRNewswire/ -- T. Rowe Price OHA Select Private Credit Fund (the "Company" or "OCREDIT") today announced financial results and declared total distributions of $0.84 per share for the quarter ended September 30, 2024. In addition to the regular monthly distribution, this quarter's distribution also included a special quarterly distribution of $0.15 per share, representing the fourth consecutive quarter of special distributions.
As borrowers continued to access private credit markets for their financing solutions, OCREDIT was a beneficiary of OHA's robust investment platform, allowing it to invest in 10 new portfolio companies throughout the third quarter, representing portfolio net growth of $285.3 million. OCREDIT is well diversified across 22 unique sectors with exposure to 103 portfolio companies, and a portfolio yield of 11.6%. "We are satisfied with the overall construct and health of the portfolio and its ability to generate income in an environment where investors are increasingly focused on yield", said Eric Muller, OCREDIT's Chief Executive Officer.
Additionally, OCREDIT continues to expand and diversify its borrowing facilities to ensure they are sized appropriately and to ensure appropriate terms and conditions. "Subsequent to quarter-end, in October, OCREDIT continued to demonstrate its access to debt capital by upsizing its JPM Credit Facility to $665 million from $475 million, representing an increase of $190 million. Additionally, we negotiated a reduction in the cost of the BNP Credit Facility to S+225 from S+3001", said Gerard Waldt, OCREDIT's Chief Financial Officer. "We are pleased with both the upsize and repricing, as it highlights our banking relationships across multiple lenders and provides us the necessary capacity for our capital pipeline as we head into year end and 2025."
QUARTERLY HIGHLIGHTS5
Net investment income per share was $0.77 with weighted average yield on debt and income producing investments, at amortized cost of 11.6%2;
Earnings per share were $0.69 with inception-to-date3 annualized total return of 14.31%4;
Net asset value per share as of September 30, 2024 was $27.83, down 0.5% from $27.98 as of June 30, 2024;
Gross and net investment fundings were $356.5 million and $285.3 million, respectively;
Ending debt-to-equity was 0.79x, as compared to 0.74x as of June 30, 2024;
The Company had total net debt outstanding of $850.5 million with a decrease in weighted average interest rate of debt from 7.8% to 7.6% quarter over quarter. Subsequent to quarter end, the Company entered into a Commitment Increase Agreement5 (the "Commitment Increase Agreement") with JPMorgan Chase Bank ("JPM" or the "JPM Credit Facility"). The Commitment Increase Agreement increased total commitments from $475 million to $665 million.
During the third quarter of 2024, the Company issued 2,294,172 of Class I common shares for proceeds of $64.2 million and 619,647 of Class S common shares for proceeds of $17.3 million. From October 1, 2024 through November 7, 2024, the Company received total proceeds of $66.7 million from common shareholders in connection with its public offering.6
Subsequent to quarter end on October 24, 2024, the Company declared a regular distribution of $0.20 per share and a variable supplemental distribution of $0.03 per share for total distributions of $0.23 per share, which is payable on or about November 29, 2024 to common shareholders of record as of October 31, 2024.
DISTRIBUTIONS8
During the third quarter of 2024, the Company declared total distributions of $0.84 per share, of which $0.15 per share was a special distribution. As of September 30, 2024, the Company's annualized distribution yield (excluding special distributions) was 9.9%.7
From October 1, 2024 through November 7, 2024, the Company declared the following distributions:
($ per share)
October 24, 2024
Base Distribution
$0.20
Variable Distribution
$0.03
Total Distribution
$0.23
SELECTED FINANCIAL HIGHLIGHTS
($ in thousands, unless otherwise noted)
Q3 2024
Q2 2024
Net investment income per share
$0.77
$0.77
Net investment income
$29,599
$25,065
Earnings per share
$0.69
$0.68
($ in thousands, unless otherwise noted)
As of
September 30, 2024
As of
June 30, 2024
Total fair value of investments
$1,937,619
$1,649,749
Total assets
$2,035,072
$1,860,020
Total net assets
$1,079,558
$1,002,126
Net asset value per share
$27.83
$27.98
INVESTMENT ACTIVITY
For the three months ended September 30, 2024, net investment fundings were $285.3 million. The Company invested $356.5 million during the quarter, including $259.3 million in 10 new companies and $97.2 million in existing companies. The Company had $71.2 million of principal repayments and sales during the quarter.
($ in millions, unless otherwise noted)
Q3 2024
Q2 2024
Investment Fundings
$356.5
$412.6
Sales and Repayments
$71.2
$119.5
Net Investment Activity
$285.3
$293.1
As of September 30, 2024, the Company's investment portfolio had a fair value of $1,937.6 million, comprised of investments in 103 portfolio companies operating across 22 different industries. The investment portfolio at fair value was comprised of 94.5% first lien loans, 5.2% second lien loans and 0.3% equity investments. In addition, as of September 30, 2024, 99.7% of the Company's debt investments based on fair value were at floating rates and 0.3% were at fixed rates. There were no investments on non-accrual status.
FORWARD-LOOKING STATEMENTS
Certain information contained in this communication constitutes "forward-looking statements" within the meaning of the federal securities laws and the Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by the use of forward-looking terminology, such as "outlook," "indicator," "believes," "expects," "potential," "continues," "may," "can," "will," "should," "seeks," "approximately," "predicts," "intends," "plans," "estimates," "anticipates", "confident," "conviction," "identified" or the negative versions of these words or other comparable words thereof. These may include financial projections and estimates and their underlying assumptions, statements about plans, objectives and expectations with respect to future operations, statements regarding future performance, statements regarding economic and market trends and statements regarding identified but not yet closed investments. Such forward-looking statements are inherently uncertain and there are or may be important factors that could cause actual outcomes or results to differ materially from those indicated in such statements. OCREDIT believes these factors also include but are not limited to those described under the section entitled "Risk Factors" in its prospectus, and any such updated factors included in its periodic filings with the Securities and Exchange Commission (the "SEC"), which are accessible on the SEC's website at www.sec.gov. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this document (or OCREDIT's prospectus and other filings). Except as otherwise required by federal securities laws, OCREDIT undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future developments or otherwise.
ABOUT T. ROWE PRICE OHA SELECT PRIVATE CREDIT FUND
T. Rowe Price OHA Select Private Credit Fund (the "Company" or "OCREDIT") is a non-diversified, closed-end management investment company that has elected to be regulated as a business development company ("BDC") under the Investment Company Act of 1940, as amended (the "1940 Act"). The Company also intends to elect to be treated as a regulated investment company ("RIC") under the Internal Revenue Code of 1986, as amended (the "Code"). OHA Private Credit Advisors LLC (the "Adviser") is the investment adviser of the Company. The Adviser is registered as an investment adviser with the U.S. Securities and Exchange Commission (the "SEC") under the Investment Advisers Act of 1940. OCREDIT's registration statement became effective on September 29, 2023. From inception through September 30, 2024, the Company has invested approximately $2,244.8 million in aggregate cost of debt investments prior to any subsequent exits or repayments. The Company's investment objective is to generate attractive risk-adjusted returns, predominately in the form of current income, with select investments capturing long-term capital appreciation, while maintaining a strong focus on risk management. OCREDIT invests primarily in directly originated and customized private financing solutions, including loans and other debt securities with a strong focus on senior secured lending to larger companies.
Please visit www.ocreditfund.com for additional information.
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