Blue Owl Capital Corporation (OBDC) shares fell 5.02% in pre-market trading on Thursday.
The sharp decline came after the company announced it was reducing its quarterly dividend to 31 cents per share from 36 cents. CEO Craig Packer stated the quarter reflected "a more challenging earnings environment driven by lower base rates and tighter spreads," with higher borrowing costs weighing on performance.
Investors have been exiting private credit funds run by Blue Owl and its rivals due to concerns over lending to software companies and other troubled sectors. The company's net asset value also declined in the first quarter, adding to the negative sentiment surrounding the stock.
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