Certain Blue Owl BDCs to Sell $1.4 Billion of Assets to Institutional Investors
Rhea-AI Summary
Blue Owl BDCs (NYSE:OWL) agreed to sell $1.4 billion of direct lending investments to four institutional investors at fair value, equal to 99.7% of par as of Feb 12, 2026. The sales cover 128 portfolio companies across 27 industries and consist of 97% senior secured debt.
OBDC II intends to use proceeds to pay a return of capital of up to $2.35 per share (~30% of NAV) and to pay down debt; OTIC and OBDC intend to use proceeds to reduce debt and boost deployment flexibility.
Positive
- Sales at fair value of 99.7% of par as of Feb 12, 2026
- Return of capital up to $2.35 per share (~30% of OBDC II NAV)
- Proceeds to pay down debt for OBDC II, OTIC and OBDC
- Diversified exposure: 128 companies across 27 industries (97% senior secured)
- OTIC pro forma liquidity: >$1.6 billion in cash, undrawn debt capacity and liquid loans
Negative
- OBDC II sold approximately 34% of its total investment commitments, materially reducing invested exposure
- First-quarter return of capital (~30% of NAV) replaces a previously planned 5% tender offer for the quarter
News Market Reaction
On the day this news was published, OBDC gained 1.05%, reflecting a mild positive market reaction. Argus tracked a peak move of +3.2% during that session. Our momentum scanner triggered 7 alerts that day, indicating moderate trading interest and price volatility. This price movement added approximately $61M to the company's valuation, bringing the market cap to $5.90B at that time.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
OWL was down 1.79% while peers showed mixed moves: TPG -4.6%, CG -1.13%, TROW -0.34%, with STT flat and RJF roughly unchanged. Scanner data shows no coordinated sector momentum.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Feb 11 | Fundraise completion | Positive | -2.8% | Closed BOSE strategic equity strategy with commitments over $3 billion. |
| Feb 10 | New partnership | Positive | -2.8% | Launched residential land banking partnership using Blue Owl managed funds. |
| Feb 05 | Earnings and dividend | Positive | -3.6% | Reported Q4 results, strong fundraising, and declared $0.225 dividend. |
| Jan 27 | Conference appearance | Positive | -0.6% | Announced co-CEO presentation at BofA 2026 Financial Services Conference. |
| Jan 16 | Strategic partnership | Positive | -3.6% | Partnered on co-development of 1+ gigawatt hyperscale data center campus. |
Recent OWL headlines, including record fundraising and strategic initiatives, have generally been upbeat yet followed by negative 24-hour price reactions, indicating a pattern of selling into good news.
In the past month, Blue Owl reported record Q4 2025 fundraising with $17 billion of new capital in Q4 and $56 billion for 2025, crossing $300 billion of AUM and declaring a $0.225 dividend (Feb 5, 2026). It also closed its BOSE strategy with over $3 billion in commitments (Feb 11, 2026) and announced conference participation and third-party partnerships. Despite these positive milestones, each event showed a negative 24-hour price reaction, similar to the pre-news weakness seen ahead of today’s BDC asset sale and liquidity announcement.
Market Pulse Summary
This announcement highlights a sizeable portfolio transaction and liquidity event across the Blue Owl BDC complex. The funds are selling $1.4 billion of primarily senior secured loans at 99.7% of par, with OBDC II planning a return of capital of up to $2.35 per share, or roughly 30% of NAV, plus ongoing monthly distributions. Investors may watch how asset sales, leverage reduction, and redeployment capacity—such as OTIC’s > $1.6 billion in pro forma liquidity—affect income generation and portfolio risk over time.
Key Terms
par value financial
senior secured debt financial
return of capital distribution financial
net asset value financial
fairness opinions financial
AI-generated analysis. Not financial advice.
Investments sold at fair value, representing
Transaction provides significant return of capital distribution to OBDC II shareholders
"We saw strong demand to purchase these investments at fair value from highly sophisticated institutional investors, with interest far exceeding the value of the investments we ultimately chose to sell," said Craig W. Packer, Chief Executive Officer of Blue Owl's BDCs. "This transaction underscores the confidence that large, experienced buyers have in our direct lending platform and has meaningful benefits for all shareholders of these funds."
Transaction Details
These sales include debt investment commitments of
The investments will be sold at fair value, which is equivalent to
OBDC II intends to use the proceeds to pay a return of capital distribution ratably to all shareholders, subject to Board approval, and to pay down debt. OTIC and OBDC also intend to use the proceeds from the sales to pay down debt.
This transaction positions OBDC II to provide substantial liquidity to its shareholders. It also provides OTIC and OBDC with greater flexibility to deploy capital into what we believe will be an attractive direct lending environment and modestly increases portfolio diversification. Pro forma for the transaction, OTIC is expected to have cash, undrawn debt capacity and liquid loans in excess of
Kroll, LLC provided fairness opinions associated with the transaction to the boards of directors of each of the Blue Owl BDCs.
The settlement of the sales is expected to be completed in the first quarter of 2026.
Blue Owl Capital Corporation II Updates
OBDC II intends to use the proceeds to pay a return of capital distribution ratably to all of its shareholders and to pay down debt. The return of capital distribution is expected to be paid on or before March 31, 2026, and to be up to
"Today's announcement reinforces the rigor of our valuation process and the quality of our direct lending investments. It also demonstrates our ability to opportunistically deliver value to our shareholders. At this stage for OBDC II, we are pleased to provide a significant liquidity event at fair value while still maintaining a diversified portfolio with strong earnings potential," commented Logan Nicholson, President of OBDC II and OBDC.
In conjunction with the announcement, the Board of Directors of OBDC II also declared monthly distributions of
After accounting for the distributions declared today and before the anticipated return of capital distribution, OBDC II will have paid
At approximately
About Blue Owl Capital Corporation II
Blue Owl Capital Corporation II ("OBDC II") is a specialty finance company focused on lending to
About Blue Owl Technology Income Corp.
Blue Owl Technology Income Corp. ("OTIC") is a specialty finance company focused on lending to
About Blue Owl Capital Corporation
Blue Owl Capital Corporation (NYSE: OBDC) is a specialty finance company focused on lending to
Certain information contained herein may constitute "forward-looking statements" that involve substantial risks and uncertainties. Such statements involve known and unknown risks, uncertainties and other factors and undue reliance should not be placed thereon. These forward-looking statements are not historical facts, but rather are based on current expectations, estimates and projections about the Blue Owl BDCs, its current and prospective portfolio investments, its industry, its beliefs and opinions, and its assumptions. Words such as "anticipates," "expects," "intends," "plans," "will," "may," "continue," "believes," "seeks," "estimates," "would," "could," "should," "targets," "projects," "outlook," "potential," "predicts" and variations of these words and similar expressions are intended to identify forward-looking statements. These statements are not guarantees of future performance and are subject to risks, uncertainties and other factors, some of which are beyond each Blue Owl BDC's control and difficult to predict and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements including, without limitation, the risks, uncertainties and other factors identified in each Blue Owl BDC's filings with the SEC. Investors should not place undue reliance on these forward-looking statements, which apply only as of the date on which each Blue Owl BDC makes them. The Blue Owl BDCs do not undertake any obligation to update or revise any forward-looking statements or any other information contained herein, except as required by applicable law.
Investor Contact:
BDC Investor Relations
Michael Mosticchio
credit-ir@blueowl.com
Media Contact:
Nick Theccanat
Managing Director, Communications & Public Affairs
nick.theccanat@blueowl.com
View original content:https://www.prnewswire.com/news-releases/certain-blue-owl-bdcs-to-sell-1-4-billion-of-assets-to-institutional-investors-302692003.html
SOURCE Blue Owl Capital Corporation II; Blue Owl Technology Income Corp.; Blue Owl Capital Corporation
FAQ
What did Blue Owl BDCs (NYSE:OWL) announce on February 18, 2026 about asset sales?
How much return of capital will OBDC II pay per share and when will it be paid?
At what valuation were the $1.4 billion of investments sold by Blue Owl BDCs (OWL)?
How will OTIC and OBDC use proceeds from the February 2026 sales announced by OWL?
What liquidity impact does the transaction have for OTIC and OBDC after the sales?
