June 8 (Reuters) – A private credit fund managed by Blue Owl Capital, which earlier this year imposed limits on investor redemptions, has raised $500 million through an investment‑grade bond offering, Bloomberg News reported on Monday, citing a person familiar with the matter.
Blue Owl did not immediately respond to a Reuters request for comment.
Here are more details from the report:
• Blue Owl Credit Income Corp (OCIC) priced five-year notes at a spread of 255 basis points over U.S. Treasuries, at a reoffer price of 98.771, according to the report.
• The spread tightened by about 25 basis points from initial price talk, the report added.
• The proceeds will be used to repay debt, the report said.
• OCIC is structured as a business development company, a vehicle that raises equity and pairs it with leverage to finance loans, mainly to mid-sized companies.
• Wealthy investors have sought to withdraw funds from private credit vehicles in recent months, amid concerns about weakening lending standards and the potential for AI to disrupt the software sector, a key area of exposure for many such funds.
• The firm had capped withdrawals at 5% of shares at two of its funds earlier in the year, after receiving a historic level of redemption requests in the first quarter.
(Reporting by Pritam Biswas in Bengaluru)
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