Published on 7/16/2020 in the Prospect News Investment Grade Daily.
New Issue: Owl Rock prices upsized $500 million of 4.25% notes due 2026 at 412.5 bps spread
By Cristal Cody
Tupelo, Miss., July 16 – Owl Rock Capital Corp. priced an upsized $500 million of 4.25% senior notes due Jan. 15, 2026 (Baa3/BBB-/BBB-) on Thursday at a spread of Treasuries plus 412.5 basis points, according to a market source and an FWP filing with the Securities and Exchange Commission.
Initial price talk was in the Treasuries plus 425 bps to 437.5 bps spread area.
The notes were sold at 99.254 to yield 4.405%.
Owl Rock Capital upsized the offering from $300 million.
BofA Securities, Inc., MUFG, SMBC Nikko Securities America Inc., SunTrust Robinson Humphrey Inc., Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC, ING Financial Markets LLC, RBC Capital Markets, LLC and SG Americas Securities, LLC were the bookrunners.
The New York-based middle-market debt and equity asset management company plans to use the proceeds to repay debt under its SPV Asset Facility III due Dec. 14, 2023.
| Issuer: | Owl Rock Capital Corp.
|
| Amount: | $500 million
|
| Description: | Senior notes
|
| Maturity: | Jan. 15, 2026
|
| Bookrunners: | BofA Securities, Inc., MUFG, SMBC Nikko Securities America Inc., SunTrust Robinson Humphrey Inc., Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC, ING Financial Markets LLC, RBC Capital Markets, LLC and SG Americas Securities, LLC
|
| Co-manager: | Compass Point Research & Trading, LLC, Credit Suisse Securities (USA) LLC, ICBC Standard Bank plc, Janney Montgomery Scott LLC, JMP Securities LLC, Keefe, Bruyette & Woods, Inc., Ladenburg Thalmann & Co. Inc., Morgan Stanley & Co. LLC, PNC Capital Markets LLC, Raymond James & Associates, Inc., R. Seelaus & Co., LLC, Seaport Global Securities LLC and Wells Fargo Securities, LLC
|
| Coupon: | 4.25%
|
| Price: | 99.254
|
| Yield: | 4.405%
|
| Spread: | Treasuries plus 412.5 bps
|
| Call features: | Make-whole call before Dec. 15, 2025 at price equal to greater of par or Treasuries plus 50 bps; thereafter at par
|
| Change-of-control put: | Par
|
| Trade date: | July 16
|
| Settlement date: | July 23
|
| Ratings: | Moody’s: Baa3
|
| S&P: BBB-
|
| Fitch: BBB-
|
| Distribution: | SEC registered
|
| Price guidance: | Treasuries plus 425 bps to 437.5 bps area
|
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