A private credit fund managed by Blue Owl Capital, which previously limited investor redemptions, has raised $500 million through an investment-grade bond offering. The proceeds will be used to repay debt.
This bond sale provides Blue Owl's credit fund with necessary liquidity to manage its debt obligations, potentially easing concerns about its ability to meet redemption requests following earlier withdrawal limits.
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.
Pick the topics you care about. Get only what matters, on your cadence.