Blue Owl Capital Corp 8-K

What Happened

• Blue Owl Capital Corporation (OBDC) announced on May 21, 2026 that it closed an offering of $400,000,000 aggregate principal amount of 6.300% notes due August 15, 2031. The company and Deutsche Bank Trust Company Americas entered into an Eleventh Supplemental Indenture to the Base Indenture governing the Notes. Interest on the Notes is 6.300% per year, payable semiannually on February 15 and August 15, beginning February 15, 2027. The offering closed May 21, 2026; the underwriting agreement was entered May 18, 2026 with RBC, Deutsche Bank, Goldman Sachs, Morgan Stanley, SMBC Nikko and TD Securities as representatives.

Key Details

• Principal: $400,000,000 of 6.300% notes due August 15, 2031.
• Interest and payments: 6.300% annual interest, paid semiannually on Feb. 15 and Aug. 15, first payment Feb. 15, 2027.
• Redemption: Company may redeem prior to July 15, 2031 (the “Par Call Date”) at a price equal to the greater of (1) the present value of remaining payments discounted at Treasury rate + 35 bps (less accrued interest) or (2) 100% of principal, plus accrued interest; on/after Par Call Date redeemable at 100% of principal plus accrued interest.
• Use of proceeds: Expected to repay existing indebtedness, including amounts under its senior secured revolving credit facility and/or its 3.400% notes due July 15, 2026.
• Security and covenants: The Notes are direct, general unsecured obligations. The Indenture includes customary covenants (including certain Investment Company Act-related compliance and financial reporting obligations) and a change-of-control repurchase obligation if a change of control occurs and the Notes are downgraded below investment grade by the three major rating agencies.

Why It Matters

• This transaction increases Blue Owl Capital’s unsecured long-term debt by $400 million and provides cash to pay down nearer-term obligations (including the July 2026 notes and revolver), which can extend maturities and reduce near-term refinancing risk.
• The 6.30% coupon is materially higher than the 3.40% July 2026 notes being repaid, so while maturities may be pushed out, interest expense will increase relative to the lower-rate short-term notes.
• The Notes are unsecured and include a change-of-control repurchase feature that could require cash outlays if a qualifying event occurs and ratings fall below investment grade. Investors should consider the company’s leverage, upcoming maturities, and the higher coupon when assessing credit risk.