T. Rowe Price OHA Select Private Credit Fund, or OCREDIT – a joint investment offering sponsored by T. Rowe Price and Oak Hill Advisors – announced financial results and declared total distributions of $0.84 per share for the quarter ended Sept. 30, 2024.
According to OCREDIT, the quarter’s distribution included a special quarterly distribution of $0.15 per share in addition to the regular monthly distribution. This represents the fourth consecutive quarter of special distributions.
OCREDIT also reported that it invested in 10 new portfolio companies during the third quarter, representing a portfolio net growth of $285.3 million. The fund also said that it is 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.
Gerard Waldt, OCREDIT’s chief financial officer, added: “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+300.”
According to the company, figures represent borrowings that bear interest at a rate of the secured overnight financing rate plus a determined amount.
The fund also reported other quarterly highlights. It said net investment income per share was $0.77 with a weighted average yield on debt and income-producing investments, at amortized cost of 11.6%. Earnings per share were $0.69, up from $0.68 in quarter two, with an inception-to-date annualized total return of 14.31%.
Net asset value per share as of Sept. 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, and ending debt-to-equity was 0.79x, as compared to 0.74x as of June 30, 2024.
The fund also said that, from Oct. 1 through Nov. 7, 2024, the company received total proceeds of $66.7 million from common shareholders in connection with its public offering. Additionally, subsequent to quarter end on Oct. 24, 2024, the fund 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. This sum is payable on or about Nov. 29, 2024 to common shareholders of record as of Oct. 31, 2024.
OCREDIT’s special distributions have become a regular occurrence recently. The fund declared a special distribution of $0.15 for all share classes at the end of June 2024 and then again at the end of September 2024.
OCREDIT was launched in 2023 as an OHA-managed private credit investment “solution” for investors via a non-traded, perpetual-life business development company structure. It invests in a diversified portfolio of primarily senior secured, privately originated loans to larger, well-established, recession-resistant companies located mainly in North America.
It started with $1.5 billion of capital available for investments, making it one of the industry’s largest non-traded BDC launches. This included more than $600 million raised in equity commitments from T. Rowe Price and global institutional investors with, according to T. Rowe Price and OHA, long-term investment orientations, in addition to $875 million in credit facility commitments.
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