Key Takeaways
- • Blue Owl Capital Inc. sold $750 million of 10-year high-grade debt, upsized from initial discussions of $500 million, after receiving strong investor demand, according to people familiar with the matter.
- • The notes were priced by financing subsidiary Blue Owl Finance at 2.20 percentage points over Treasuries, about 0.3 percentage point tighter than initial price talk.
- • A dozen entities, including Blue Owl Capital, are listed as guarantors, and bond proceeds will be used to repay revolving credit facility borrowings.
Summary
Blue Owl Capital Inc. raised $750 million through the sale of high-grade debt, according to people familiar with the matter reported by Bloomberg. The offering was increased from initial discussions of $500 million after the firm received a large volume of investor orders.
The 10-year note was priced by Blue Owl Finance, a financing subsidiary of the firm. The transaction yields 2.20 percentage points above Treasuries, roughly 0.3 percentage point lower than the initial price talk, one of the people said. The tighter pricing reflects the depth of demand for the paper relative to early indications.
A dozen entities, including Blue Owl Capital, are listed as guarantors on the notes. Proceeds will be used to repay borrowings under the company's revolving credit facilities, a step that reduces near-term reliance on bank credit lines.
The financing comes as Blue Owl's business development companies have also been active in the market. Bloomberg separately reported that Blue Owl BDCs bought back $90 million of shares to support value, a move the firm has used to address its share price.
The 10-year note was priced by Blue Owl Finance, a financing subsidiary of the firm. The transaction yields 2.20 percentage points above Treasuries, roughly 0.3 percentage point lower than the initial price talk, one of the people said. The tighter pricing reflects the depth of demand for the paper relative to early indications.
A dozen entities, including Blue Owl Capital, are listed as guarantors on the notes. Proceeds will be used to repay borrowings under the company's revolving credit facilities, a step that reduces near-term reliance on bank credit lines.
The financing comes as Blue Owl's business development companies have also been active in the market. Bloomberg separately reported that Blue Owl BDCs bought back $90 million of shares to support value, a move the firm has used to address its share price.
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