Blue Owl Capital’s Blue Owl Credit Income Corp. (OCIC), one of the largest private credit funds in the market, raised $500 million through an investment-grade bond offering as the firm continues to navigate elevated redemption requests, according to Bloomberg.
The five-year notes were priced with a spread of 2.55 percentage points over U.S. Treasuries at a reoffer price of 98.771. Bloomberg reported that the spread tightened by roughly a quarter of a percentage point from initial discussions, reflecting strong investor demand. Proceeds from the offering will be used to repay debt.
OCIC manages approximately $37 billion in assets and is among the largest private credit vehicles. Earlier this year, the fund capped investor withdrawals after redemption requests exceeded 20% of outstanding shares amid concerns tied to software-related holdings. Redemptions at both OCIC and Blue Owl Technology Income Corp. were limited to 5% of net asset value. Both vehicles operate as business development companies focused on private credit lending.
Investor concerns surrounding liquidity in private credit resurfaced last week after several funds announced plans to restrict another round of withdrawals.
The OCIC transaction was one of eight investment-grade bond deals launched on Monday, collectively raising approximately $8.8 billion. Crédit Agricole, ING Groep, Royal Bank of Canada, Sumitomo Mitsui Banking Corp., and Wells Fargo managed the offering.
Bloomberg Intelligence analyst David Havens said the transaction highlighted Blue Owl’s continued access to capital markets, providing a positive signal to investors. The company recently completed another $500 million investment-grade bond offering through a separate technology-focused fund to refinance debt.
