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(Bloomberg) — One of Blue Owl Capital Inc.’s private credit funds that capped redemptions earlier this year is set to raise $500 million from an investment-grade bond sale.
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Blue Owl Credit Income Corp. has launched the sale of a five-year note at a spread of 2.55 percentage points above Treasuries, according to a person familiar with the matter who asked not to be identified as they’re not authorized to speak publicly. That’s about a quarter-point tighter than initial price talk. Proceeds used to repay debt, the person said.
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The $37 billion fund, known as OCIC, is one of the largest in private credit. But it received investor withdrawal requests on more than 20% of its shares earlier this year amid sector worries centered on the health of software-related holdings. Redemptions were limited to 5% of net asset value at OCIC and Blue Owl Technology Income Corp., which are both business development companies that pool private credit loans.
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News about fresh redemption requests in private credit began emerging last week, with several funds saying they will limit the next round of withdrawals.
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Monday’s bond sale, one of eight investment-grade offerings, is being led by Crédit Agricole SA ING Groep NV, Royal Bank of Canada, Sumitomo Mitsui Banking Corp. and Wells Fargo & Co. Blue Owl Capital and the banks either declined to comment or didn’t immediately reply to requests.
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The offering helps “demonstrate the company’s ongoing access to debt capital markets that sends an important constructive signal,” Bloomberg Intelligence analyst David Havens wrote in a Monday note.
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A separate Blue Owl tech fund sold $500 million of high-grade bonds last week to refinance debt.
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