BLUE OWL CAPITAL ANNOUNCES PRICING OF SENIOR NOTES OFFERING

Rhea-AI Summary

Blue Owl Capital (NYSE: OWL) announced the pricing of a $250 million offering of 6.250% Senior Notes due 2034 through its subsidiary Blue Owl Finance The notes are issued at 100.355% plus accrued interest from April 18, 2024, and will be treated as a single series with the previously issued $750 million notes. The notes are guaranteed by various Blue Owl entities and the offering is subject to customary closing conditions. Proceeds are intended for general corporate purposes, including strategic acquisitions and growth initiatives. The notes will be sold to qualified institutional buyers under Rule 144A and to non-U.S. persons under Regulation S. A registration rights agreement will be executed, requiring an offer to exchange the notes registered with the SEC within 365 days of issuance.

Positive

• Successful pricing of $250 million offering of 6.250% Senior Notes due 2034.
• Notes issued at 100.355%, indicating strong demand.
• Proceeds aimed at general corporate purposes, strategic acquisitions, and growth initiatives.
• Notes are fully and unconditionally guaranteed by various Blue Owl entities.
• Registration rights agreement ensures notes will be registered with the SEC within 365 days.

Negative

• Offering subject to customary closing conditions, which may pose risks.
• Notes are not currently registered under the Securities Act, limiting immediate liquidity.
• Potential dilution from future strategic acquisitions funded by proceeds.

News Market Reaction – OWL

-7.03%

1 alert

-7.03% News Effect

On the day this news was published, OWL declined 7.03%, reflecting a notable negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

NEW YORK, May 30, 2024 /PRNewswire/ -- Blue Owl Capital Inc. ("Blue Owl") (NYSE: OWL) today announced the pricing of the offering of $250,000,000 of 6.250% Senior Notes due 2034 (the "notes") by Blue Owl Finance LLC, its indirect subsidiary, at an issue price of 100.355%, plus accrued interest, if any, from April 18, 2024. The notes are being offered as additional notes under the same indenture as the previously issued $750,000,000 aggregate principal amount of its 6.250% Senior Notes due 2034 and will be treated as a single series with such previously issued senior notes. The notes will be fully and unconditionally guaranteed by each of Blue Owl, Blue Owl Capital GP Holdings LLC, Blue Owl Capital GP LLC, Blue Owl Capital Holdings LP, Blue Owl Capital Carry LP, Blue Owl Capital Group LLC, Blue Owl GPSC Holdings LLC, Blue Owl Capital GP Holdings LP, Blue Owl GP Stakes GP Holdings LLC, Blue Owl Real Estate Holdings LP, Blue Owl Real Estate GP Holdings LLC and Blue Owl Capital Holdings LLC. The offering is subject to customary closing conditions. Blue Owl intends to use the net proceeds from this offering for general corporate purposes, including to fund any future strategic acquisitions or related transactions and growth initiatives.

The notes will be offered and sold to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A and to non-U.S. persons outside the United States pursuant to Regulation S under the Securities Act of 1933, as amended (the "Securities Act"). The Company also intends to enter into a registration rights agreement in connection with the offering of the notes, under which it will agree to consummate an offer to exchange the notes pursuant to a registration statement filed with the Securities and Exchange Commission within 365 days after the original issue date of the notes.

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 the United States except pursuant to an exemption from, or in a transaction subject to, the registration requirements of the Securities Act and applicable state securities laws.

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 $174 billion in assets under management as of March 31, 2024, we invest across three multi-strategy platforms: Credit, GP Strategic Capital, and Real Estate. Anchored by a strong permanent capital base, we provide businesses with private capital solutions to drive long-term growth and offer institutional and individual investors differentiated alternative investment opportunities that aim to deliver strong performance, risk-adjusted returns, and capital preservation.

Together with over 725 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 value of the new Senior Notes offering by Blue Owl Capital?

Blue Owl Capital announced the pricing of a $250 million offering of 6.250% Senior Notes due 2034.

What is the interest rate on the Blue Owl Capital Senior Notes due 2034?

The Senior Notes due 2034 have an interest rate of 6.250%.

When are the Blue Owl Capital Senior Notes due?

The Senior Notes are due in 2034.

How will Blue Owl Capital use the proceeds from the Senior Notes offering?

The proceeds will be used for general corporate purposes, including strategic acquisitions and growth initiatives.

What percentage were the Blue Owl Capital Senior Notes issued at?

The notes were issued at 100.355%, plus accrued interest from April 18, 2024.

Who are the Blue Owl Capital Senior Notes guaranteed by?

The notes are fully and unconditionally guaranteed by various Blue Owl entities.

Under which regulations are the Blue Owl Senior Notes being offered?

The notes are being offered under Rule 144A and Regulation S.

What is the stock symbol for Blue Owl Capital?

The stock symbol for Blue Owl Capital is OWL.