Blue Owl Technology Finance Corp. Closes $150 Million Private Placement of Senior Unsecured Notes

OTF adds $150 million of 2032 senior notes, lifting recent debt financings to $800 million and reinforcing available liquidity and funding diversity.

Rhea-AI Summary

Blue Owl Technology Finance Corp. (OTF) closed a private placement of $150 million aggregate principal amount of 7.60% senior unsecured notes due September 3, 2032.

This is OTF's third financing since June 30, 2026, bringing total debt capital raised in that period to $800 million through unsecured notes and a special purpose vehicle facility. In the second quarter, OTF also issued $500 million of 6.500% notes due 2029, added $150 million of secured financing and extended its $2.7 billion revolving credit facility, with every existing bank partner renewing commitments and one new lender added. OTF ended the quarter with more than $2 billion of cash and available capacity across credit facilities and repaid its notes due June 2026 at maturity.

Positive

• $150 million 7.60% senior unsecured notes due 2032 closed via private placement
• Total debt financing raised since June 30, 2026 reaches $800 million
• Second quarter actions included $500 million of 6.500% notes due 2029 and $150 million of secured financing
• Revolving credit facility of $2.7 billion extended with all existing banks renewing commitments and one new lender added
• Ended the quarter with more than $2 billion in cash and available capacity across credit facilities
• Company cites one of the lowest non-accrual rates in the BDC sector, supporting access to debt investors and banks

Negative

• New $150 million 7.60% senior unsecured notes add long-term interest obligations
• Total recent debt financing of $800 million increases OTF's overall leverage compared with pre-June 30, 2026 levels

News Explained

The financing is closed; its disclosed terms are a 7.60% rate on $150 million of notes due September 3, 2032.

OTF has closed the financing, adding $150 million of senior unsecured debt rather than disclosing an equity issuance or ownership dilution in this release.

The notes bear a 7.60% rate and mature on September 3, 2032. A private placement is a sale of securities to selected investors outside a public offering; here, the notes were sold under a Securities Act exemption and were not registered.

Market Context

A director purchased 1,000 shares at $11.37 on August 28, 2026, adding recent insider-buying context...

Analysis

A director purchased 1,000 shares at $11.37 on August 28, 2026, adding recent insider-buying context. The placement's funding mix and 7.60% coupon remain relevant items to monitor alongside its registration exemption.

Key Figures

Private placement: $150 million Interest rate: 7.60% Debt financing raised: $800 million +5 more

8 metrics

Private placement $150 million Senior unsecured notes

Interest rate 7.60% Notes due September 3, 2032

Debt financing raised $800 million Since June 30, 2026

Additional notes issued $400 million 6.500% notes due 2029

SPV facility $250 million Secured by portfolio investments

Revolving credit facility $2.7 billion Facility extended during the second quarter

Cash and available capacity More than $2 billion At quarter-end

Registration exemption Section 4(a)(2) Securities Act private placement exemption

Historical Context

5 past events · Latest: Aug 17 (Positive)

Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
Aug 17	Credit rating	Positive	-0.2%	KBRA assigned a BBB rating with a stable outlook to OTF's 2029 notes.
Aug 05	2Q26 earnings	Positive	+8.7%	Adjusted NII increased while OTF expanded financing and reported stable NAV.
Jul 01	Earnings scheduling	Neutral	+3.0%	OTF scheduled its second-quarter results release and earnings call for August.
Jun 03	Credit rating	Positive	-1.4%	KBRA rated OTF's 2029 senior unsecured notes BBB with a stable outlook.
May 06	1Q26 earnings	Negative	-6.0%	NAV declined amid unrealized losses while leverage increased during the quarter.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

OTF's historical reactions varied: earnings news aligned with subsequent moves, while positive credit-rating announcements were followed by declines.

Key Terms

private placement, senior unsecured notes, revolving credit facility, non-accrual rates

4 terms

private placement financial

"closing of a private placement of $150 million aggregate principal amount"

A private placement is a sale of securities directly to a selected group of investors, typically institutions or accredited investors, instead of through a public offering. It lets a company raise money faster and with fewer regulatory steps; for existing shareholders it matters because the newly issued shares, often sold at a discount, increase the share count and can dilute their ownership.

senior unsecured notes financial

"$150 million aggregate principal amount of 7.60% senior unsecured notes"

Senior unsecured notes are a type of loan a company borrows from investors, promising to pay back with interest. They are called "unsecured" because they aren’t backed by specific assets like buildings or equipment, but "senior" because they are paid back before other debts if the company gets into trouble. Investors see them as a relatively safer way for companies to raise money.

revolving credit facility financial

"extended its $2.7 billion revolving credit facility"

A revolving credit facility is a type of loan that a business can borrow from whenever it needs money, up to a set limit. It’s like having a credit card for companies—allowing them to borrow, pay back, and borrow again as needed, providing flexibility for managing cash flow or funding short-term expenses.

non-accrual rates financial

"one of the lowest non-accrual rates in the BDC sector"

The non-accrual rate is the share of a lender’s loan portfolio on which the lender has stopped recognizing interest income because borrowers are late or unlikely to pay. It measures credit trouble like a red flag: higher non-accrual rates mean more loans are showing signs of default, so investors use it to gauge the quality and risk of a lender’s assets, similar to checking how many items in a store are marked damaged.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Third financing since June 30 brings total debt financing raised to $800 million, further strengthening OTF's liquidity and financial flexibility

NEW YORK, Sept. 4, 2026 /PRNewswire/ -- Blue Owl Technology Finance Corp. (NYSE: OTF) ("OTF") today announced the closing of a private placement of $150 million aggregate principal amount of 7.60% senior unsecured notes due September 3, 2032 (the "Notes").

This transaction marks OTF's third financing since June 30, 2026, bringing total debt capital raised during the period to $800 million. In August, OTF issued an additional $400 million of its 6.500% notes due 2029. OTF also raised $250 million through a special purpose vehicle facility secured by a pool of portfolio investments.

"OTF's portfolio continues to perform well, with one of the lowest non-accrual rates in the BDC sector, and we continue to see strong support from both debt investors and our bank partners," said Craig W. Packer, Chief Executive Officer. "We have raised $800 million of debt financing since quarter-end through unsecured notes and an SPV facility, which further strengthens and diversifies our funding base. This added flexibility positions us to grow the portfolio and capitalize on an increasingly attractive environment for technology investing while maintaining our underwriting discipline that has defined OTF's performance."

During the second quarter, OTF issued $500 million of its 6.500% notes due 2029, added $150 million of secured financing and extended its $2.7 billion revolving credit facility. Every existing bank partner renewed its revolver commitment, and OTF added a new lending relationship that provided incremental financing capacity. OTF ended the quarter with more than $2 billion of cash and available capacity across its credit facilities and repaid its notes due June 2026 at maturity.

The Notes have not been and will not be registered under the Securities Act of 1933, as amended (the "Securities Act"), or applicable state securities laws and were offered and sold in reliance on the exemption from registration provided by Section 4(a)(2) of the Securities Act. This press release does not constitute an offer to sell or the solicitation of an offer to buy the Notes or any other securities. 

About Blue Owl Technology Finance Corp.

Blue Owl Technology Finance Corp. (NYSE: OTF) is a specialty finance company focused on making debt and equity investments to U.S. technology-related companies, with a strategic focus on software. As of June 30, 2026, OTF had investments in 205 portfolio companies with an aggregate fair value of $14.7 billion. OTF has elected to be regulated as a business development company under the Investment Company Act of 1940, as amended. OTF is externally managed by Blue Owl Technology Credit Advisors LLC, an SEC-registered investment adviser that is an indirect affiliate of Blue Owl Capital Inc. ("Blue Owl") (NYSE: OWL) and part of Blue Owl's Credit platform.

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 OTF, 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 OTF'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 OTF'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 OTF makes them. OTF does 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:

Head of Communications
Andrew Williams
media@blueowl.com

 

View original content:https://www.prnewswire.com/news-releases/blue-owl-technology-finance-corp-closes-150-million-private-placement-of-senior-unsecured-notes-302869693.html

SOURCE Blue Owl Technology Finance Corp.

FAQ

What did Blue Owl Technology Finance Corp. (OTF) announce about its new senior unsecured notes?

OTF announced the closing of a private placement of $150 million aggregate principal amount of 7.60% senior unsecured notes due September 3, 2032. The company said this financing further strengthens and diversifies its funding base.

What are the key terms of the new senior unsecured notes issued by OTF (OTF)?

The new OTF notes have an aggregate principal amount of $150 million, a coupon of 7.60%, and mature on September 3, 2032. They are senior unsecured obligations issued in a private placement and were not registered under the Securities Act.

How much total debt financing has OTF (OTF) raised since June 30, 2026?

Since June 30, 2026, OTF has raised $800 million of debt capital. This consists of the new $150 million 7.60% senior unsecured notes, an additional $400 million of 6.500% notes due 2029 issued in August, and a $250 million special purpose vehicle facility.

What was OTF’s liquidity position at the end of the second quarter of 2026?

OTF ended the second quarter of 2026 with more than $2 billion of cash and available capacity across its credit facilities. The company had also extended its $2.7 billion revolving credit facility and repaid its notes due June 2026 at maturity.

What other recent financing activities has Blue Owl Technology Finance Corp. (OTF) completed?

During the second quarter, OTF issued $500 million of its 6.500% notes due 2029, added $150 million of secured financing and extended its $2.7 billion revolving credit facility. In August, it issued an additional $400 million of 6.500% notes due 2029 and closed a $250 million SPV facility.

Is the new $150 million OTF (OTF) note offering registered under the Securities Act?

No. The $150 million senior unsecured notes have not been and will not be registered under the Securities Act or applicable state securities laws. They were offered and sold in reliance on the exemption from registration provided by Section 4(a)(2) of the Securities Act.

What is the investment focus and portfolio size of Blue Owl Technology Finance Corp. (OTF)?

OTF is a specialty finance company focused on debt and equity investments in U.S. technology-related companies, with a focus on software. As of June 30, 2026, it held investments in 205 portfolio companies with an aggregate fair value of $14.7 billion.