Blue Owl private credit fund raises $20.7M in share sale

Blue Owl Capital (OWL)’s BDC, Blue Owl Credit Income Corp, raised caller superior done a backstage stock merchantability portion pursuing its nationalist multi cardinal dollar fundraising effort according to a March SEC Filing.

The plus manager sold 2.27 cardinal unregistered Class I shares for astir $20.7 million astatine the opening of March, according to an 8-K filing.

Since launch, the steadfast has raised over $22 billion crossed backstage offerings and aggregate stock classes.

Blue Owl said the unregistered shares were purchased by feeder vehicles whose superior investments are successful the fund’s Class I shares, which yielded $20.7 cardinal successful caller capital.

​While the backstage offering is abstracted from the fund’s continuous nationalist offering, it allows the steadfast to merchantability shares astatine prices tied to (NAV) connected an ongoing basis.

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The money issued much than 2.36 cardinal shares and raised astir $22.2 billion crossed its nationalist and backstage offerings.

The shares are sold astatine $9.11 to $9.13 per stock by the extremity of February, based connected the fund’s nett plus worth per stock and the stock class.

As of Feb.28, the portfolio had indebtedness investments successful 347 companies with a full par worth of $34.2 billion, and astir 87.8% of the portfolio was first-lien debt, which is the astir elder indebtedness successful a company’s superior structure, portion each the 98.2% of the different loans wage floating involvement rates.

Some of the largest manufacture exposures see healthcare providers and services, net bundle and services, fiscal services, and security services.

Blue Owl has astir $16.7 cardinal of outstanding indebtedness and a 0.80x debt-to-equity ratio, overmuch of which is secured and floating-rate, meaning borrowing costs determination with involvement rates.

The money besides reported holding astir $3.9B successful level 2 liquid assets and astir $780 million successful cash, which provides liquidity to operations and capitalist activity.

Related: Deutsche Bank signals $30B hazard to backstage credit

The operation of capitalist capital, borrowed money, and floating-rate loans is cardinal to however backstage recognition funds make income. Floating-rate loans tin nutrient higher income erstwhile involvement rates are elevated, portion leverage tin summation returns, but besides increases hazard if indebtedness show deteriorates.

Despite the caller halt successful redemptions successful large backstage recognition funds, Blue Owl’s continued issuance of shares done backstage and nationalist offerings indicates the money is actively successful maturation mode, seeking superior to grow its indebtedness portfolio.