BLUE OWL CAPITAL ANNOUNCES PRICING OF SENIOR NOTES OFFERING
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.
- 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.
- 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.
Insights
Blue Owl Capital has announced the pricing of
Key points for investors include:
Interest Rate: The 6.250% rate is moderately high in the current low-interest environment. Investors might see this as a sign that Blue Owl needs to offer attractive terms to raise capital. This could imply higher risk, but also an opportunity for higher returns.
Purpose of Proceeds: Using proceeds for general corporate purposes and potential acquisitions can indicate that the company is looking for expansion and growth. However, the lack of specific targets may suggest a more opportunistic approach rather than a strategic one.
Debt Levels: This new issuance adds to existing debt, which requires careful monitoring. Higher debt can mean more leverage and potential for growth, but it also increases interest obligations and financial risk.
This offering is part of broader financing strategies and can influence the company's capital structure and ability to pursue new opportunities.
The notes are offered pursuant to Rule 144A and Regulation S under the Securities Act of 1933. This means they are available primarily to institutional investors and non-U.S. persons. The company plans a registration rights agreement to exchange these notes within 365 days, which is essential for liquidity and compliance.
Regulation S allows U.S. companies to raise capital from non-U.S. investors without having to register the securities in the U.S. This can be advantageous for tapping international markets but also requires adherence to complex international securities laws.
For retail investors, understanding these legal frameworks is important as it limits direct participation in the initial offering but indicates a well-structured approach to capital raising.
The issuance of additional notes can signal confidence in the market and investor interest in Blue Owl's debt offerings. It reflects the company's strategy to capitalize on favorable market conditions to secure funding. However, it’s essential to watch how this aligns with broader market trends and investor sentiment towards corporate debt.
By bundling this new issuance with the prior notes, Blue Owl is creating a more substantial and potentially more attractive offering. This can improve liquidity and demand from institutional investors. It also indicates ongoing efforts to streamline their financial operations and leverage existing investor relationships.
For retail investors, this move might suggest a robust long-term outlook, but they should remain cautious about the company's increasing debt load and the impact of interest rate fluctuations on their obligations.
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 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
View original content:https://www.prnewswire.com/news-releases/blue-owl-capital-announces-pricing-of-senior-notes-offering-302160063.html
SOURCE Blue Owl Capital
FAQ
What is the value of the new Senior Notes offering by Blue Owl Capital?
What is the interest rate on the Blue Owl Capital Senior Notes due 2034?
When are the Blue Owl Capital Senior Notes due?
How will Blue Owl Capital use the proceeds from the Senior Notes offering?
What percentage were the Blue Owl Capital Senior Notes issued at?
Who are the Blue Owl Capital Senior Notes guaranteed by?
Under which regulations are the Blue Owl Senior Notes being offered?
What is the stock symbol for Blue Owl Capital?
