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
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.
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 $70 billion of capital across credit strategies, including private credit, high yield bonds, leveraged loans, stressed and distressed debt and collateralized loan obligations as of September 30, 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 $1.63 trillion in assets under management as of September 30, 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
September 30, 2024
December 31, 2023
ASSETS
(unaudited)
Investments at fair value:
Non-controlled/non-affiliated investments (cost of $1,927,465
and $1,131,726 at September 30, 2024 and December 31,
2023, respectively)
$ 1,937,619
$ 1,148,412
Cash, cash equivalents and restricted cash
37,087
105,456
Interest receivable
21,392
15,498
Deferred financing costs
5,184
6,021
Deferred offering costs
520
1,705
Receivable for investments sold
33,246
9,044
Unrealized appreciation on foreign currency contracts
24
–
Total assets
$ 2,035,072
$ 1,286,136
LIABILITIES
Debt (net of unamortized debt issuance costs of $3,118 and
$0, at September 30, 2024 and December 31, 2023,
respectively)
$ 850,528
$ 558,630
Payable for investments purchased
63,600
151
Interest and debt fee payable
16,047
4,846
Distribution payable
14,725
11,573
Management fee payable
3,254
–
Income incentive fee payable
4,306
–
Distribution and/or shareholder servicing fees payable
17
–
Unrealized depreciation on foreign currency forward contracts
–
1,048
Accrued expenses and other liabilities
3,037
5,457
Total liabilities
$ 955,514
$ 581,705
Commitments and contingencies (Note 8)
NET ASSETS
Class I shares, $0.01 par value (38,796,477 and 25,158,870
shares issued and outstanding at September 30, 2024 and
December 31, 2023, respectively)
$ 388
$ 252
Additional paid in capital
1,069,860
687,139
Distributable earnings (loss)
9,310
17,040
Total net assets
$ 1,079,558
$ 704,431
Total liabilities and net assets
$ 2,035,072
$ 1,286,136
Net asset value per share
$ 27.83
$ 28.00
See accompanying notes to consolidated financial statements.
T. Rowe Price OHA Select Private Credit Fund
Consolidated Statements of Operations
(in thousands, except per share amounts)
(unaudited)
For the Three Months Ended
For the Nine Months Ended
September 30,
2024
September 30,
2023
September 30,
2024
September 30,
2023
Investment income from non-controlled /
non-affiliated investments:
Interest income
$ 53,285
$ 20,285
$ 137,033
$ 24,730
Other income
3,195
664
9,672
796
Total investment income
56,480
20,949
146,705
25,526
Expenses:
Interest and debt fee expense
16,363
7,273
41,049
8,402
Management fees
3,254
962
8,299
962
Income incentive fees
4,306
1,543
11,155
1,543
Distribution and shareholder servicing fees
Class S
39
–
45
–
Professional fees
888
504
1,704
1,051
Board of Trustees fees
98
97
292
291
Administrative service expenses
359
225
1,109
310
Organizational costs
–
–
–
94
Other general & administrative expenses
1,223
396
3,705
694
Amortization of deferred offering costs
429
486
2,040
486
Total expenses before fee waivers and
expense support
26,959
11,486
69,398
13,833
Expense support
(78)
(324)
(1,306)
(324)
Management fees waiver
–
(962)
(2,344)
(962)
Income incentive fee waiver
–
(1,543)
(3,363)
(1,543)
Total expenses net of fee waivers and
expense support
26,881
8,657
62,385
11,004
Net investment income
29,599
12,292
84,320
14,522
Realized and unrealized gain (loss):
Realized gain (loss):
Non-controlled/non-affiliated investments
285
159
(34)
181
Foreign currency transactions
172
(69)
438
(69)
Foreign currency forward contracts
(2,558)
325
(2,078)
325
Net realized gain (loss)
(2,101)
415
(1,674)
437
Net change in unrealized appreciation (depreciation):
Non-controlled/non-affiliated investments
(1,272)
7,251
(6,532)
7,960
Foreign currency translation
27
–
27
–
Foreign currency forward contracts
30
132
1,072
141
Net change in unrealized appreciation (depreciation)
(1,215)
7,383
(5,433)
8,101
Net realized and unrealized gain (loss)
(3,316)
7,798
(7,107)
8,538
Net increase (decrease) in net assets
resulting from operations
$ 26,283
$ 20,090
$ 77,213
$ 23,060
See accompanying notes to consolidated financial statements.
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”
