BLUE OWL CAPITAL ANNOUNCES PRICING OF SENIOR NOTES OFFERING
- Blue Owl Capital Inc. successfully priced $750,000,000 of 6.250% Senior Notes due 2034.
- The notes will be fully guaranteed by various entities under Blue Owl.
- Proceeds from the offering will be used to repay outstanding borrowings and for general corporate purposes.
- Blue Owl intends to potentially use the remaining net proceeds for strategic acquisitions or growth initiatives.
- The offering is subject to customary closing conditions and will target qualified institutional buyers and non-U.S. persons.
- The Company plans to enter into a registration rights agreement for the notes.
- The notes have not been registered under the Securities Act or state securities laws.
- None.
The issuance of $750,000,000 of 6.250% Senior Notes due 2034 by Blue Owl Capital Inc. is a significant move in terms of corporate financing. This action suggests a strategic approach to capital structure management, where the company is taking advantage of the current interest rate environment to lock in long-term financing at a fixed rate. The decision to use the proceeds to repay existing debt under their revolving credit facility indicates a focus on reducing short-term liabilities and interest expenses, which could improve the company's balance sheet and financial ratios such as the debt-to-equity ratio and interest coverage ratio.
Furthermore, the earmarking of funds for potential strategic acquisitions or growth initiatives indicates an expansionary strategy. Investors should monitor the deployment of these funds as successful acquisitions can lead to revenue growth and increased market share, while unsuccessful ones can become a financial burden. The use of a registration rights agreement is also noteworthy as it could potentially increase the future liquidity of the notes, making them more attractive to institutional investors.
Blue Owl Capital's decision to offer the notes under Rule 144A and Regulation S is a common practice for private placements to qualified institutional buyers and non-U.S. persons, respectively. These regulations allow the company to raise capital without the need for a public offering, which can be a faster and less costly process. However, it's important to note that these notes will be subject to restrictions on resale, limiting their marketability to certain investor types.
The lack of registration under the Securities Act means that the company is not subject to the same level of disclosure and regulatory oversight as it would be in a public offering. While this can be beneficial for the company in terms of flexibility and confidentiality, it requires investors to conduct thorough due diligence. The planned future exchange offer under a registration statement could alleviate some of these concerns by providing additional protections and disclosures to note holders.
From a market perspective, the offering of senior notes by Blue Owl Capital Inc. can be seen as a reflection of investor confidence in the company's ability to service its debt. The 6.250% interest rate is a key figure to compare against current market rates for similar maturities and credit ratings. If this rate is competitive, it can indicate a strong market position and creditworthiness.
Investors should also consider the broader economic context, such as interest rate trends and the credit cycle, which can affect the cost of borrowing and the demand for such debt instruments. The timing of this offering could be strategic, aimed at capitalizing on market conditions before any anticipated shifts in the interest rate environment. The impact on the stock market will largely depend on how the proceeds are used to generate value and the market's perception of the company's growth prospects and risk profile.
The notes will be offered and sold to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A and to non-
The notes have not been registered under the Securities Act or any state securities laws and, unless registered, may not be offered or sold in
This press release shall not constitute an offer to sell or a solicitation of an offer to purchase the notes or any other securities and shall not constitute an offer, solicitation or sale in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful.
About Blue Owl Capital
Blue Owl (NYSE: OWL) is a leading asset manager that is redefining alternatives.
With over
Together with over 685 experienced professionals globally, Blue Owl brings the vision and discipline to create the exceptional.
Forward-Looking Statements
Certain statements made in this press release are "forward looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. When used in this press release, the words "estimates," "projected," "expects," "anticipates," "forecasts," "plans," "intends," "believes," "seeks," "may," "will," "would," "should," "future," "propose," "target," "goal," "objective," "outlook" and variations of these words or similar expressions (or the negative versions of such words or expressions) are intended to identify forward-looking statements. Any such forward-looking statements are made pursuant to the safe harbor provisions available under applicable securities laws and speak only as of the date made. Blue Owl assumes no obligation to update or revise any such forward-looking statements except as required by law.
These forward-looking statements are not guarantees of future performance, conditions or results, and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside Blue Owl's control, that could cause actual results or outcomes to differ materially from those discussed in the forward-looking statements.
Important factors, among others, that may affect actual results or outcomes include the inability to recognize the anticipated benefits of strategic acquisitions; costs related to acquisitions; the inability to maintain the listing of Blue Owl's shares on the New York Stock Exchange; Blue Owl's ability to manage growth; Blue Owl's ability to execute its business plan and meet its projections; potential litigation involving Blue Owl; changes in applicable laws or regulations; and the possibility that Blue Owl may be adversely affected by other economic, business, geo-political and competitive factors.
Blue Owl Investor Contact
Ann Dai
Head of Investor Relations
blueowlir@blueowl.com
Blue Owl Media Contact
Nick Theccanat
Principal, Corporate Communications & Government Affairs
nick.theccanat@blueowl.com
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SOURCE Blue Owl Capital
FAQ
What is the purpose of Blue Owl Capital Inc.'s offering of Senior Notes due 2034?
Who will guarantee the Senior Notes under Blue Owl Capital Inc.?
How will Blue Owl utilize the net proceeds from the offering?
What type of buyers is the offering targeting?
Are the Senior Notes registered under the Securities Act?
