Blue Owl Capital Raises $1 Billion in Bond Market Surge

Blue Owl Capital has tapped into the US high-grade bond market with a substantial $1 billion debt issuance, as new bond offerings continue to surge. The private markets-focused alternative asset manager priced a long five-year note, yielding 2.6 percentage points over Treasuries, slightly lower than the initial pricing talk of 2.8 percentage points, according to a Bloomberg report.

The funds raised from this bond issuance will be allocated towards reducing debt under its revolving credit facility, asset-backed security, and other secured financings. Blue Owl Capital did not respond to requests for comment.

This issuance follows a $600 million debt sale by Sixth Street Lending Partners earlier in the week. Private credit funds, often known as business development companies, are on track to set records for debt sales this year.

In recent weeks, there has been a rush to the US blue-chip bond market as companies seek to capitalize on falling bond yields. Approximately $87 billion in new deals have been recorded this month alone.

Other significant debt issuers on Tuesday included Oneok Inc., which raised $7 billion for acquisitions of EnLink Midstream LLC and Medallion Midstream. The debt sale was managed by Mitsubishi UFJ Financial Group Inc., Royal Bank of Canada, Sumitomo Mitsui Banking Corp., and Wells Fargo & Co.