Owl Rock Capital Advisors prices $333.5 million CLO; stronger middle-market supply eyed

By Cristal Cody

Tupelo, Miss., Nov. 16 – Owl Rock Capital Advisors LLC priced $333.5 million in the company’s fourth middle-market CLO deal of the year.

Owl Rock Capital Advisors subsidiary Owl Rock Technology Advisors LLC will manage the new CLO.

Middle-market volume year to date totals about $8 billion, compared to $14 billion of average issuance in the previous few years.

“Middle-market issuance has picked up in the past few months and we project a return to normalcy in 2021,” BofA Securities, Inc. analysts said in a research note released on Monday.

BofA Securities forecasts gross middle-market CLO issuance of $15 billion in 2021.

Owl Rock Technology Advisors priced $333.5 million of notes due Jan. 15, 2031 in a new middle-market CLO transaction, according to a market source.

Owl Rock Technology Financing 2020-1/Owl Rock Technology Financing 2020-1 LLC sold $200 million of the class A floating-rate notes at Libor plus 285 bps.

MUFG was the placement agent.

Owl Rock Technology Advisors will manage the CLO, which has a one-year non-call period and a two-year reinvestment period.

The CLO is backed primarily by middle-market senior secured term loans.

Owl Rock Capital has priced four new middle-market CLOs in 2020.

The alternative asset manager is based in New York.

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