Published on 4/19/2021 in the Prospect News Investment Grade Daily.
New Issue: Owl Rock sells upsized $500 million 2.625% notes due 2027 at 193 bps over Treasuries
Chicago, April 19 – Owl Rock Capital Corp. sold an upsized $500 million offering of 2.625% notes due Jan. 15, 2027 (Baa3/BBB-/BBB-) at 99.287 to yield 2.761% on Monday, according to an FWP filing with the Securities and Exchange Commission.
The notes priced with a spread of Treasuries plus 193 basis points.
Talk had the notes expected in the Treasuries plus 220 bps area and sized at $300 million.
The notes feature a make-whole call and then a par call.
BofA Securities Inc. is an active bookrunner and will bill and deliver; J.P. Morgan Securities LLC, MUFG, RBC Capital Markets LLC and SMBC Nikko Securities America Inc. are also active bookrunners.
Additional bookrunners were Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC, ING Financial Markets LLC, SG Americas Securities, LLC and Truist Securities, Inc.
The New York-based middle-market debt and equity asset management company plans to use the proceeds to repay debt, including debt under the company’s $1.295 billion senior secured revolving credit facility, which matures on Sept. 3, 2025.
Amounts drawn under the revolver currently bear interest at a weighted average interest rate of 2.1%. As of March 31, there was $553.5 million outstanding under the revolver.
| Issuer: | Owl Rock Capital Corp.
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| Issue: | Notes
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| Amount: | $500 million
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| Maturity: | Jan. 15, 2027
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| Bookrunners: | BofA Securities, Inc., J.P. Morgan Securities LLC, MUFG, RBC Capital Markets, LLC, SMBC Nikko Securities America, Inc., Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC, ING Financial Markets LLC, SG Americas Securities, LLC and Truist Securities, Inc.
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| Co-managers: | Compass Point Research & Trading, LLC, ICBC Standard Bank plc, JMP Securities LLC, Keefe, Bruyette & Woods, Inc., Ladenburg Thalmann & Co. Inc., Oppenheimer & Co. Inc., PNC Capital Markets LLC, R. Seelaus & Co., LLC, Raymond James & Associates, Inc., Seaport Global Securities LLC and Wells Fargo Securities, LLC
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| Coupon: | 2.625%
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| Price: | 99.287
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| Yield: | 2.761%
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| Spread: | Treasuries plus 193 bps
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| Call features: | Make-whole call at Treasuries plus 30 bps until one month prior to redemption when the call converts to a par call
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| Trade date: | April 19
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| Settlement date: | April 26
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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
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| Price talk: | Treasuries plus 220 bps area
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