Blue Owl Capital issues $500M in notes due 2030

Blue Owl Capital Corp (NYSE:OWL), an alternative asset manager with a market capitalization of $7.47 billion and a P/E ratio of 9.32, announced on Monday that it has entered into an agreement for the issuance of $500 million aggregate principal amount of 6.200% notes due 2030. According to InvestingPro data, the company maintains a healthy current ratio of 1.47, indicating strong liquidity management. The notes, set to mature on July 15, 2030, will bear interest semiannually and can be redeemed by the company at a specified price before the maturity date.

The company disclosed the new debt offering details in a Form 8-K filed with the Securities and Exchange Commission on Thursday. The notes are part of a supplemental indenture to an existing agreement with Deutsche Bank (ETR:DBKGn) Trust Company Americas, who will act as the trustee.

The New York-based company intends to use the net proceeds from the offering to repay existing debts, including its senior secured revolving credit facility. These facilities carry different interest rates and mature on August 26, 2027, and November 22, 2029. InvestingPro analysis shows the company has maintained solid financial health with an overall score of 2.62 (rated as "Good"), while achieving revenue growth of 3.6% in the last twelve months. The indenture includes covenants that require the company to comply with certain provisions of the Investment Company Act of 1940 and to provide financial information to the note holders if the company is no longer subject to the SEC reporting requirements.

Furthermore, Blue Owl Capital stated that in the event of a change of control repurchase event, it will be required to offer to purchase the notes at 100% of the principal amount plus accrued and unpaid interest.

The notes were offered through an underwriting agreement with Wells Fargo (NYSE:WFC) Securities, LLC, Morgan Stanley (NYSE:MS) & Co. LLC, MUFG Securities Americas Inc., RBC Capital Markets, LLC, and SMBC Nikko Securities America, Inc. as representatives of the underwriters.

This financial maneuver is part of Blue Owl Capital’s broader strategy to manage its capital structure and refinance existing obligations. The transaction closed on Thursday, with the notes being offered and sold under a previously filed registration statement, supplemented by a preliminary prospectus supplement and a final prospectus supplement, both dated May 12, 2025. The company has demonstrated strong shareholder returns with an impressive dividend yield of 11.26%. For deeper insights into Blue Owl Capital’s financial health and growth prospects, including exclusive ProTips and comprehensive analysis, check out the full research report available on InvestingPro.

The details of the indenture, supplemental indenture, and the notes are available in the full text of the documents filed with the SEC as exhibits to the Form 8-K. The information in this article is based on the press release statement.

In other recent news, Owl Rock Capital Corp (NYSE:OBDC) reported its Q1 2025 earnings, which fell short of analysts’ expectations. The company announced an earnings per share (EPS) of $0.39, missing the forecasted $0.43, while revenue reached $464.6 million, slightly below the anticipated $469.36 million. The earnings report also highlighted the completion of a merger between OBD and OBDC, with a focus on loan growth. Despite the earnings miss, Blue Owl Capital Corporation maintained a robust portfolio, with nearly $18 billion in total investments and net assets close to $8 billion. The company also reported a net leverage of 1.26x, slightly above its target range. Analysts from Compass Point and Citizens expressed interest in the company’s financial stability and growth prospects during the earnings call. Additionally, Blue Owl Capital Corporation plans to maintain its dividend level for the remainder of 2025, supported by approximately $0.34 of spillover income. The company also expects potential interest rate reductions, which could impact future earnings.

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