Blue Owl Capital has raised $500m through an investment-grade bond issuance linked to one of its private credit vehicles, according to a report by Bloomberg.
The transaction comes after the firm earlier this year placed limits on investor redemptions at one of its funds following elevated withdrawal requests, highlighting growing liquidity pressures across parts of the private credit market.
The bond offering, issued via Blue Owl Credit Income Corp, was priced as five-year notes at a spread of 255 basis points over US Treasuries, with pricing tightening by roughly 25 basis points from initial guidance, the report said. Proceeds are expected to be used primarily to refinance existing debt.
OCIC operates as a business development company (BDC), a structure that combines investor equity with leverage to originate and hold private loans, typically targeting mid-market corporate borrowers.
The refinancing activity comes amid broader signs of strain in parts of the private credit ecosystem, where some wealth investors have sought to redeem allocations amid concerns over credit quality and sector exposure. In response, several funds have implemented gating mechanisms to manage outflows during periods of elevated demand for liquidity.
Earlier this year, Blue Owl capped withdrawals at 5% of shares across two of its vehicles after experiencing unusually high redemption requests in the first quarter.
