Blue Owl Doubles Size of Bond Sale in First Issue Since Merger

Blue Owl Capital Inc., the newly-formed alternative asset manager from the merger of Owl Rock Capital and Dyal Capital Partners, more than doubled the size of a bond sale, its first since the investing giants combined last month.

The firm, through a subsidiary, is selling $700 million of unsecured bonds, up from $300 million, according to a person familiar with the matter. The 10-year notes will yield 165 basis points above Treasuries, after initially discussing around 187.5 basis points, said the person, who asked not to be identified because they’re not authorized to speak publicly.

The sale comes only two weeks after the merger was completed through a special-purpose acquisition company and Blue Owl began trading on the New York Stock Exchange under the ticker OWL. It had $52.5 billion in assets under management as of March 31.

Blue Owl will use the proceeds to repay all outstanding borrowings under its existing term loan facility. Any remainders will be used for general corporate purposes, including to fund future strategic acquisitions or related transactions and growth initiatives, the person said.

Refinancing the term loan, which has $250 million outstanding and matures October 2029, would enhance funding flexibility, Fitch Ratings said in a statement last month. It assigned a first-time rating of BBB with a stable outlook.

Bank of America Corp., Goldman Sachs Group Inc. and JPMorgan Chase & Co. are managing the bond sale.

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