Blue Owl Capital Extends Credit Facility

The revised terms include an extended revolving period, a reduced loan margin, and a new collateral custodian.

June 17, 2025

Blue Owl Capital Optimizes Credit Facility with Strategic Amendments

Blue Owl Capital has made several changes to its secured credit facility that are designed to improve flexibility and reduce borrowing costs. On June 12, 2025, the firm’s subsidiary—ORCC III Financing LLC—executed Amendment No. 7 to the Loan and Servicing Agreement. The result: longer lending timelines, reduced financing spreads, and updated custodial arrangements.

At the operational level, the amendment swaps out Alter Domus (US) LLC in favor of State Street Bank and Trust Company as collateral custodian. That change, combined with updates to the facility’s structure, positions the company to manage credit lines with greater efficiency.

Lower Loan Margins and Extended Timelines

On the financing side, Blue Owl has secured more favorable terms. The applicable margin on loans has dropped to 1.90%, regardless of currency. Previously, rates ranged from 2.6693% for GBP loans to 2.70% for others. That spread reduction helps bring down the cost of capital, creating more room for performance across the lending portfolio.

The updated agreement also lengthens key milestones:

• The Revolving Period is extended from March 2026 to March 2028.


• The Facility Termination Date moves from March 2028 to March 2030.

These extensions allow Blue Owl to operate with a longer time horizon—and give more breathing room for managing risk and deploying capital over multiple years.

More Leverage and New Conditions

There’s more headroom in the leverage profile as well. The advance rate cap has increased from 60% to 62.5%, which gives ORCC III Financing the option to borrow slightly more against eligible assets.

But that additional flexibility comes with tradeoffs:

• During the Revolving Period, minimum usage requirements apply , and unused commitments may trigger fees.


• If commitments are reduced or terminated within the first year after the amendment, a prepayment penalty may apply.

These changes were formalized in the latest agreement, filed as Exhibit 10.1 in the company’s report. For asset managers tracking developments in private credit, the message is clear: Blue Owl is adjusting its financing framework to match the scale and complexity of its investment activity. With tighter margins, more time, and operational realignments in place, the company is refining how it structures its borrowing—giving it more room to act in today’s evolving credit environment.