Blue Owl BDCs Tap Debt Markets Three Times in One Week
Three Blue Owl-sponsored business development companies disclosed separate financing moves within days of each other, according to a trio of Form 8-K filings made public Sept. 15. Blue Owl Credit Income Corp. priced $1 billion in new unsecured notes, a financing subsidiary of the New York Stock Exchange-listed Blue Owl Technology Finance Corp. increased a warehouse-style credit facility by $100 million, and Blue Owl Technology Income Corp. voluntarily shrank its senior secured credit facility to $975 million in what it said was a move to reduce borrowing costs.
OCIC Prices $1 Billion in Notes, Taps Proceeds for Near-Term Maturities
Blue Owl Credit Income Corp., or OCIC, a nontraded BDC, completed a private offering of $700 million of 6.25% notes due June 15, 2029, and a $300 million add-on to its 6.55% notes due 2031. The add-on brings OCIC’s outstanding 2031 notes to $800 million combined with the $500 million tranche the company sold in June. Net proceeds came to approximately $988.1 million after fees and expenses.
OCIC said it plans to use the proceeds to pay down its revolving credit facility, which had about $591.5 million outstanding as of June 30, and its 3.125% notes due 2026, which mature Sept. 23 – just over a week after the new notes priced. Goldman Sachs & Co., BofA Securities, MUFG Securities Americas, Scotia Capital (USA), and SMBC Nikko Securities America served as initial purchasers.
The notes offering extends a busy year of liability management for OCIC, which raised $1.3 billion in financing in March and tightened its credit facility’s risk limits while opening a 5% tender offer in August.
OTF Subsidiary Upsizes Warehouse Facility to $250 Million
Athena Funding III LLC, a financing subsidiary of Blue Owl Technology Finance Corp. (NYSE: OTF), amended its loan financing and servicing agreement Sept. 11 to raise the facility’s maximum principal from $150 million to $250 million and adjust the terms of its borrowing base test. Deutsche Bank AG’s New York branch serves as facility agent and State Street Bank and Trust Company as collateral agent and custodian.
The upsize follows an active stretch of financing for the listed BDC, which closed a $150 million private placement of 7.6% senior unsecured notes due 2032 last month – its third financing since June 30, bringing total debt capital raised in that span to $800 million – following its 2025 NYSE debut.
OTIC Trims Credit Facility for Second Time This Year
Blue Owl Technology Income Corp., a nontraded BDC formerly known as Owl Rock Technology Income Corp., entered a fourth amendment to its senior secured credit agreement Sept. 10 that cuts the facility’s total size to $975 million from $1.05 billion while extending both the revolver’s availability period and its scheduled maturity by two years, to September 2030 and September 2031, respectively. The amendment also reduces the facility’s accordion provision to a maximum of $1.4625 billion and resets the minimum shareholders’ equity covenant. Sumitomo Mitsui Banking Corporation serves as administrative and collateral agent.
The company, also known as OTIC, said the reduction was voluntary, made “to reduce borrowing costs and align with its target leverage” – the same rationale it gave in July, when it trimmed $500 million from its committed debt capacity across three special-purpose-vehicle asset facilities.
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