NEW
YORK, May 8, 2024 /PRNewswire/ -- T. Rowe Price
OHA Select Private Credit Fund (the "Company" or "OCREDIT") today
announced financial results and declared total distributions of
$0.87 per share for the quarter ended
March 31, 2024.
"OCREDIT continues to perform in line with our original
expectations, driven by robust interest income and attractive
all-in asset yields," said Eric
Muller, OCREDIT's Chief Executive Officer. "As we look ahead
to the second quarter, we look forward to continuing to deploy
shareholder capital into compelling investment opportunities with a
"credit-first" approach in an increasingly dynamic market."
"As OCREDIT continues to grow, we are pleased to see its
adoption across the wealth channel, including through OCREDIT's
launch on its first major wirehouse platform in April," said
Doug Keller, T. Rowe Price's Head of U.S. Intermediaries
Alternatives Sales. "The early success highlights the close
partnership of T. Rowe Price and OHA
in delivering our shared vision of bringing OHA's private credit
expertise to individual investors through T. Rowe Price's global scale."
QUARTERLY HIGHLIGHTS
- Net investment income per share was $1.05 with weighted average yield on debt and
income producing investments, at amortized cost of
12.7%1;
- Earnings per share were $1.02
with inception-to-date2 annualized total return of
15.89%3;
- Net asset value per share as of March
31, 2024 was $28.15, up 0.5%
from $28.00 as of December 31, 2023;
- Gross and net investment fundings were $303.5 million and $206.5
million, respectively;
- Ending debt-to-equity was 0.61x, as compared to 0.79x as of
December 31, 2023;
- The Company had total net debt outstanding of $505.1 million with a decrease in weighted
average cost of debt from 8.0% to 7.9% quarter over quarter. During
the first quarter of 2024, the Company issued $300.0 million in aggregate principal amount of
Series 2024A Senior Notes, due March 7,
2029, with a fixed interest rate of 7.77% per year;
- Subsequent to quarter end on April 10,
2024, the Company launched on its first major wirehouse
platform;
- During the first quarter of 2024, the Company issued 4,486,580
of Class I common shares for proceeds of $126.1 million. From April
1, 2024 through May 8, 2024,
the Company received total proceeds of $61.8
million from common shareholders in connection with its
public offering.4
- Subsequent to quarter end on April 23,
2024, the Company declared a regular distribution of
$0.20 and a variable supplemental
distribution of $0.03 per Class I
common share, for total distributions of $0.23 per Class I common share, which are payable
on or about May 30, 2024 to Class I
common shareholders of record as of April
30, 2024.
DISTRIBUTIONS
During the first quarter of 2024, the Company declared total
distributions of $0.87 per share, of
which $0.18 per share was a special
distribution. As of March 31, 2024,
the Company's annualized distribution yield (excluding special
distributions) was 9.8%.5
From April 1, 2024 through
May 8, 2024, the Company declared the
following distributions:
($ per
share)
|
April 23,
2024
|
Base
Distribution
|
$0.20
|
Variable
Distribution
|
$0.03
|
Total
Distribution
|
$0.23
|
SELECTED FINANCIAL HIGHLIGHTS
($ in thousands, unless
otherwise noted)
|
Q1
2024
|
Q4
2023
|
Net investment income
per share
|
$1.05
|
$1.03
|
Net investment
income
|
$29,656
|
$21,038
|
Earnings per
share
|
$1.02
|
$1.42
|
|
|
|
($ in millions, unless
otherwise noted)
|
As of
March 31,
2024
|
As of
December 31,
2023
|
Total fair value of
investments
|
$1,356.8
|
$1,148.4
|
Total assets
|
$1,494.5
|
$1,286.1
|
Total net
assets
|
$834.6
|
$704.4
|
Net asset value per
share
|
$28.15
|
$28.00
|
INVESTMENT ACTIVITY
For the three months ended March 31,
2024, net investment fundings were $206.5 million. The Company invested $303.5 million during the quarter, including
$117.9 million in 9 new companies and
$185.6 million in existing companies.
The Company had $97.0 million of
principal repayments and sales during the quarter.
($ in millions, unless
otherwise noted)
|
Q1
2024
|
Q4
2023
|
Investment
Fundings
|
$303.5
|
$228.9
|
Sales and
Repayments
|
$97.0
|
$20.6
|
Net Investment
Activity
|
$206.5
|
$208.3
|
As of March 31, 2024, the
Company's investment portfolio had a fair value of $1,356.8 million, comprised of investments in 91
portfolio companies operating across 21 different industries. The
investment portfolio at fair value was comprised of 94.1% first
lien senior secured loans and 5.9% second lien senior secured
loans. In addition, as of March 31,
2024, 100% of the Company's debt investments based on fair
value were at floating rates, and there were no investments on
non-accrual status.
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 March
31, 2024, the Company has invested approximately
$1,475.8 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 downside protection. 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.
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 OAK HILL
ADVISORS
Oak Hill Advisors ("OHA") is a leading global credit-focused
alternative asset manager with over 30 years of investment
experience. OHA works with institutions and individuals and seeks
to deliver a consistent track record of risk-adjusted returns with
downside focus. The firm manages approximately $64 billion of capital across credit strategies,
including private credit, high yield bonds, leveraged loans,
stressed and distressed debt and collateralized loan obligations as
of March 31, 2024. OHA's emphasis on
long-term partnerships with companies, sponsors and other partners
provides access to a proprietary opportunity set allowing for
customized credit solutions with strength across market cycles.
With over 410 experienced professionals across six global
offices, OHA brings a collaborative approach to offering investors
a single platform to meet their diverse credit needs. OHA is the
private markets platform of T. Rowe Price Group, Inc. (NASDAQ – GS:
TROW). For more information, please visit oakhilladvisors.com.
About T. Rowe Price
Founded in 1937, T. Rowe Price (NASDAQ – GS: TROW)
helps individuals and institutions around the world achieve their
long-term investment goals. As a large global asset management
company known for investment excellence, retirement leadership, and
independent proprietary research, the firm is built on a culture of
integrity that puts client interests first. Clients rely on the
award-winning firm for its retirement expertise and active
management of equity, fixed income, alternatives, and multi-asset
investment capabilities. T. Rowe
Price has $1.54 trillion in
assets under management as of March 31,
2024, and serves millions of clients globally. News and
other updates can be found
on Facebook, Instagram, LinkedIn, X, YouTube,
and troweprice.com/newsroom.
T. Rowe
Price OHA Select Private Credit Fund
|
Consolidated
Statements of Assets and Liabilities
|
(in thousands,
except per share amounts)
|
|
|
As of
|
As of
|
|
March 31,
2024
|
December 31,
2023
|
ASSETS
|
(unaudited)
|
|
Investments at fair
value:
|
|
|
Non-controlled/non-affiliated investments (cost of
$1,342,007
and $1,131,726 at March 31, 2024 and December 31, 2023,
respectively)
|
$
1,356,751
|
$
1,148,412
|
Cash, cash equivalents
and restricted cash
|
107,743
|
105,456
|
Interest
receivable
|
13,556
|
15,498
|
Deferred financing
costs
|
5,797
|
6,021
|
Deferred offering
costs
|
1,167
|
1,705
|
Receivable for
investments sold
|
2,207
|
9,044
|
Other
assets
|
7,234
|
-
|
Total
assets
|
$
1,494,455
|
$
1,286,136
|
|
|
|
LIABILITIES
|
|
|
Debt (net of
unamortized debt issuance costs of $3,549 and $0,
at March 31, 2024 and December 31, 2023, respectively)
|
$
505,097
|
$
558,630
|
Payable for
investments purchased
|
135,805
|
151
|
Interest and debt fee
payable
|
4,557
|
4,846
|
Distribution
payable
|
12,155
|
11,573
|
Unrealized
depreciation on foreign currency forward contracts
|
143
|
1,048
|
Accrued expenses and
other liabilities
|
2,089
|
5,457
|
Total
liabilities
|
$
659,846
|
$
581,705
|
|
|
|
Commitments and
contingencies (Note 8)
|
|
|
|
|
|
NET
ASSETS
|
|
|
Class I shares, $0.01
par value (29,645,450 and 25,158,870
shares issued and outstanding at March 31, 2024 and December
31, 2023, respectively)
|
$
296
|
$
252
|
Additional paid in
capital
|
813,216
|
687,139
|
Distributable earnings
(loss)
|
21,097
|
17,040
|
Total net
assets
|
$
834,609
|
$
704,431
|
Total liabilities
and net assets
|
$
1,494,455
|
$
1,286,136
|
Net asset value per
share
|
$
28.15
|
$
28.00
|
See accompanying notes to consolidated financial
statements.
sec.gov
T. Rowe
Price OHA Select Private Credit Fund
|
Consolidated
Statements of Operations
|
(in thousands,
except per share amounts)
|
(unaudited)
|
|
|
For the Three Months
Ended
|
|
March 31,
2024
|
March 31,
2023
|
Investment income
from non-controlled / non-affiliated investments:
|
|
|
Interest
income
|
$
39,699
|
$
2,175
|
Other
income
|
3,162
|
-
|
Total investment
income
|
42,861
|
2,175
|
|
|
|
Expenses:
|
|
|
Interest and debt fee
expense
|
11,137
|
540
|
Management
fees
|
2,344
|
-
|
Income incentive
fees
|
3,363
|
-
|
Professional
fees
|
278
|
387
|
Board of Trustees
fees
|
97
|
97
|
Administrative service
expenses
|
413
|
42
|
Other general &
administrative expenses
|
1,001
|
8
|
Amortization of
deferred offering costs
|
756
|
-
|
Total expenses
before fee waivers and expense support
|
19,389
|
1,074
|
Expense
support
|
(477)
|
-
|
Management fees
waiver
|
(2,344)
|
-
|
Income incentive fee
waiver
|
(3,363)
|
-
|
Total expenses net
of fee waivers and expense support
|
13,205
|
1,074
|
Net investment
income
|
29,656
|
1,101
|
|
|
|
Realized and
unrealized gain (loss):
|
|
|
Realized gain
(loss):
|
|
|
Non-controlled/non-affiliated investments
|
129
|
11
|
Foreign currency
transactions
|
146
|
-
|
Foreign currency
forward contracts
|
(61)
|
-
|
Net realized gain
(loss)
|
214
|
11
|
|
|
|
Net change in
unrealized appreciation (depreciation):
|
|
|
Non-controlled/non-affiliated investments
|
(1,942)
|
(5)
|
Foreign currency
forward contracts
|
905
|
-
|
Net change in
unrealized appreciation (depreciation)
|
(1,037)
|
(5)
|
Net realized and
unrealized gain (loss)
|
(823)
|
6
|
Net increase
(decrease) in net assets resulting from operations
|
$
28,833
|
$
1,107
|
|
|
|
Net investment income
per common share
|
$
1.05
|
$
0.55
|
Increase in net assets
resulting from operations per common share
|
$
1.02
|
$
0.55
|
Weighted average common
shares outstanding
|
28,157,089
|
2,000,000
|
See accompanying notes to consolidated financial
statements.
sec.gov
For a more detailed description of OCREDIT's investment
guidelines and risk factors, please refer to the prospectus.
Consider the investment objectives, risks, and charges and expenses
carefully before investing or sending money. For a free prospectus
containing this and other information, call 1-855-405-6488 or visit
www.ocreditfund.com. Read it carefully.
OCREDIT is a non-exchange traded business development company
("BDC") that expects to invest at least 80% of its total assets
(net assets plus borrowings for investment purposes) in private
credit investments. An investment in OCREDIT involves a high degree
of risk. An investor should purchase securities of OCREDIT
only if they can afford the complete loss of the investment.
Neither the Securities and Exchange Commission nor any state
securities regulator has approved or disapproved of these
securities or determined if this prospectus is truthful or
complete. Securities regulators have also not passed upon whether
this offering can be sold in compliance with existing or future
suitability or Regulation Best Interest standard to any or all
purchasers.
As of March 26, 2024, OCREDIT is
available in 54 states and territories.
As of March 26, 2024, OCREDIT is
not registered for offer or sale outside of the United States.
BDCs may charge management fees, incentive fees, as well as
other fees associated with servicing loans. These fees will detract
from the total return.
OCREDIT may in certain circumstances invest in companies
experiencing distress increasing the risk of default or
failure. OCREDIT is not listed on an exchange which heightens
liquidity risk for an investor. OCREDIT has limited prior
operating history and there is no assurance that it will achieve
its investment objectives. The Company's public offering is a
"blind pool" offering and thus investors will not have the
opportunity to evaluate the Company's investments before they are
made. Investors should not expect to be able to sell shares
regardless of performance and should consider that they may not
have access to the money invested for an extended period of time
and may be unable to reduce their exposure in a market
downturn.
OCREDIT employs leverage, which increases the volatility of
OCREDIT's investments and will magnify the potential for loss.
Fixed-income securities are subject to credit risk, call risk, and
interest rate risk. As interest rates rise, bond prices
fall. Investments in high-yield bonds involve greater
risk. International investments can be riskier than U.S.
investments and subject to foreign exchange risk.
OCREDIT is "non-diversified," meaning it may invest a greater
portion of its assets in a single company. OCREDIT's share price
can be expected to fluctuate more than that of a comparable
diversified fund. OCREDIT may invest in derivatives, which
may be riskier or more volatile than other types of investments
because they are generally more sensitive to changes in market or
economic conditions.
Account opening and closing fees may apply depending on the
amount invested and the timing of the account closure. There may be
costs associated with the investments in the account such as
periodic management fees, incentive fees, loads, other expenses or
brokerage commissions. Fees for optional services may also
apply.
Opinions and estimates offered herein constitute the judgment of
Oak Hill Advisors, L.P. as of the date this document is provided to
an investor and are subject to change as are statements about
market trends. All opinions and estimates are based on assumptions,
all of which are difficult to predict and many of which are beyond
the control of Oak Hill Advisors, L.P. In preparing this document,
Oak Hill Advisors, L.P. has relied upon and assumed, without
independent verification, the accuracy and completeness of all
information. Oak Hill Advisors, L.P. believes that the information
provided herein is reliable; however, it does not warrant its
accuracy or completeness. Certain information contained in the
press release discusses general market activity, industry or sector
trends, or other broad-based economic, market or political
conditions and should not be construed as research or investment
advice.
Diversification cannot assure a profit or protect against loss
in a declining market. Potential investors are urged to consult a
tax professional regarding the possible economic, tax, legal, or
other consequences of investing in OCREDIT in light of their
particular circumstances.
In the United States, the
Company's securities are offered through T. Rowe Price Investment
Services Inc., a broker-dealer registered with the U.S. Securities
and Exchange Commission and a member of FINRA. OHA is a T.
Rowe Price company.
© 2024 Oak Hill Advisors. All Rights Reserved. OHA is a
trademark of Oak Hill Advisors, L.P. T. ROWE PRICE is a trademark of T. Rowe Price
Group, Inc. All other trademarks shown are the property of their
respective owners. Use does not imply endorsement, sponsorship, or
affiliation of Oak Hill Advisors with any of the trademark
owners.
202405-3565285
____________________
|
1
Computed as (a) the annual stated interest rate or yield plus the
annual accretion of discounts or less the annual amortization of
premiums, as applicable, on income producing securities, divided by
(b) the total relevant investments at amortized cost or fair value,
as applicable.
|
2
Inception is November 14, 2022.
|
3
Annualized total return based on net asset value calculated as the
change in net asset value per share during the respective period,
assuming distributions that have been declared are reinvested on
the effects of the performance of the Company during the period.
Past performance is no guarantee of future results.
|
4
Does not include common shares sold through the Company's
distribution reinvestment plan.
|
5
Future distribution payments are not guaranteed.
|
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SOURCE OHA