Blue Owl Credit Income Corp. 8-K

What Happened
Blue Owl Credit Income Corp. announced on its March 9, 2026 Form 8‑K that its consolidated subsidiary, Owl Rock CLO XXIV, LLC, completed an $800 million collateralized loan obligation (CLO) transaction (closing dated March 5, 2026) and that a newly formed subsidiary, Core Income Funding XI LLC, entered into a secured credit facility with a maximum commitment of $500 million. The CLO issued secured notes (Class A, B, C) and $53 million of Class A‑L loans, and the Company purchased all subordinated preferred shares issued by the CLO and will act as the required retention holder. The Core Income Funding XI facility can be used to finance acquisitions of eligible assets and purchases from the Company.

Key Details

• CLO issued: $383M AAA(sf) Class A Notes (SOFR + 1.39%), $108M AA(sf) Class B Notes (SOFR + 1.70%), $56M A(sf) Class C Notes (SOFR + 1.90%); plus $53M Class A‑L floating loans (SOFR + 1.39%). Debt matures in January 2038.
• Company retention: 200,950 preferred shares issued at $1,000 each ($200.95M) purchased by the Company; Company contributed/sold ~$766.018M funded par of middle‑market loans as the initial collateral pool (no gain/loss recognized).
• Collateral manager / fees: Blue Owl Credit Advisors LLC (BOCA) will be collateral manager and has waived its right to fees (but may rescind the waiver; any rescission would be offset against the Adviser’s management fee). Secured notes privately placed by J.P. Morgan Securities LLC.
• Core Income Funding XI facility: up to $500M maximum, interest = Term SOFR (or Daily SOFR/alternate base) + 1.35% Applicable Margin; commitment fees 0.45%–1.10% on undrawn amounts; stated maturity March 5, 2029; secured by a first‑priority lien on Core Income Funding XI’s assets. Borrowings count toward the Company’s Investment Company Act asset coverage requirements.

Why It Matters
This filing shows the Company is using structured financings to monetize and finance its middle‑market loan portfolio while retaining regulatory‑required economic exposure through preferred equity. The CLO provides long‑dated secured funding (through 2038) at floating SOFR spreads, while the Core Income Funding XI facility creates a revolving, asset‑backed borrowing source (up to $500M) for future purchases. For investors, key takeaways are increased secured leverage in consolidated subsidiaries, retained subordinated exposure (~$200.95M), potential interest‑rate sensitivity due to SOFR‑based rates, and that contributed assets remain tied to structured vehicles (with no immediate gain/loss recognized).