Published on 12/1/2020 in the Prospect News Investment Grade Daily.
New Issue: Owl Rock Capital prices upsized $1 billion 3.4% notes due 2026 at 320 bps spread
By Cristal Cody
Tupelo, Miss., Dec. 1 – Owl Rock Capital Corp. priced $1 billion of 3.4% senior notes due July 15, 2026 (Baa3/BBB-/BBB-) on Tuesday in a deal upsized from $400 million, according to a market source and filings with the Securities and Exchange Commission.
The notes priced at 98.845 to yield 3.629%, or a spread of Treasuries plus 320 basis points.
Initial price talk was in the Treasuries plus 350 bps area.
BofA Securities, Inc., Deutsche Bank Securities, Inc., SG Americas Securities, LLC, SMBC Nikko Securities America, Inc., Goldman Sachs & Co. LLC, ING Financial Markets LLC, MUFG, RBC Capital Markets LLC and Truist Securities, Inc. were the bookrunners.
Proceeds will be used to pay down existing debt, including the company’s revolving credit facility.
The revolver matures on Sept. 3, 2025 with respect to $1.295 billion of commitments and on April 2, 2024 with respect to the remaining commitments.
Amounts drawn under the revolver currently bear interest at a weighted average interest rate of 2.7%.
As of Nov. 30, Owl Rock had $651.3 million outstanding under the revolver.
The New York-based specialty finance company focuses on lending to U.S. middle market companies.
| Issuer: | Owl Rock Capital Corp.
|
| Amount: | $1 billion
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| Description: | Senior notes
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| Maturity: | July 15, 2026
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| Bookrunners: | BofA Securities, Inc., Deutsche Bank Securities, Inc., SG Americas Securities, LLC, SMBC Nikko Securities America, Inc., Goldman Sachs & Co. LLC, ING Financial Markets LLC, MUFG, RBC Capital Markets LLC and Truist Securities, Inc
|
| Co-managers: | CIBC World Markets Corp., Compass Point Research & Trading, LLC, ICBC Standard Bank plc, Janney Montgomery Scott LLC, JMP Securities LLC, Keefe, Bruyette & Woods, Inc., Ladenburg Thalmann & Co. Inc., PNC Capital Markets LLC, R. Seelaus & Co., LLC, Raymond James & Associates, Inc., Seaport Global Securities LLC and Wells Fargo Securities, LLC
|
| Coupon: | 3.4%
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| Price: | 98.845
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| Yield: | 3.629%
|
| Spread: | Treasuries plus 320 bps
|
| Call features: | Make-whole call before June 15, 2026 at price equal to greater of par or Treasuries plus 50 bps; thereafter at par
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| Trade date: | Dec. 1
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| Settlement date: | Dec. 8
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| Ratings: | Moody’s: Baa3
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| S&P: BBB-
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| Fitch: BBB-
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| Distribution: | SEC registered
|
| Price guidance: | Treasuries plus 350 bps area
|
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