Key facts
- Blue Owl Credit Income Corp (OCIC) raised $500 million via an investment-grade bond offering.
- The fund had previously imposed limits on investor redemptions.
- Proceeds from the bond sale will be used to repay debt.
- OCIC is structured as a business development company financing mid-sized companies.
A private credit fund managed by Blue Owl Capital, which had previously limited investor redemptions, has successfully raised $500 million through an investment-grade bond offering, according to a Bloomberg News report. The fund, Blue Owl Credit Income Corp (OCIC), priced five-year notes at a spread of 255 basis points over U.S. Treasuries, with the spread tightening by approximately 25 basis points from initial price talk. The funds raised will be utilized to repay existing debt. OCIC operates as a business development company, a structure designed to finance loans primarily to mid-sized companies by combining equity with leverage. In recent months, investors have shown a tendency to withdraw funds from private credit vehicles due to concerns over weakening lending standards and potential disruption from AI in key sectors like software.