Blue Owl Completes $500M CLO Refinancing

The deal refreshes a 2022 securitization and positions Blue Owl to redeploy capital into core lending strategies.

April 30, 2025

Refinancing gives Blue Owl more room to lend

Blue Owl Credit Income Corp. has executed a $500.7 million CLO refinancing that resets the terms of a 2022 securitization and frees up capital to support its middle market lending strategy. The transaction closed on April 24, 2025, through its subsidiary, Owl Rock CLO VIII, LLC, and gives the firm greater flexibility to manage its portfolio and pursue new loan opportunities.

The structure includes four new tranches of secured notes, totaling $375 million. Each tranche carries a floating rate tied to market benchmarks, with spreads ranging from 1.49% to 2.40%. These notes are backed by a pool of middle market loans and participation interests. Maturity is set for April 2037. The notes were placed privately, and proceeds were used to:

• Redeem legacy notes issued in the original 2022 CLO


• Repay associated debt obligations


• Purchase new loan assets from Blue Owl

To meet regulatory retention requirements, Blue Owl also invested $24 million in additional preferred shares—bringing its total preferred share exposure in the deal to $125.7 million. These shares are not backed by the collateral securing the notes but represent subordinated risk in the transaction. Blue Owl retains this equity as part of its ongoing role in managing the structure and remaining aligned with investors.

Updated loan sale agreement and asset contributions

Alongside the refinancing, Blue Owl updated its loan sale agreement with the CLO entity, contributing approximately $192 million in new loans into the structure. These assets become part of the collateral pool supporting the refinanced notes.

Management and reinvestment flexibility

The investment adviser, Blue Owl Credit Advisors LLC, continues to manage the underlying loan portfolio. It waived its management fee on the CLO for now but can reverse that decision later. If that happens, any new fees would be offset against existing advisory fees to prevent overlap.

The structure allows Blue Owl to reinvest principal proceeds into new loans through April 2029—extending its ability to deploy capital within its core lending strategy. With the refinancing complete, the firm is in position to operate with more capacity and longer visibility into its financing profile.