Blue Owl Credit Income Corp. Announces $660 Million Stock Repurchase Program

The initiative targets 5% of outstanding shares, providing liquidity to investors amidst its ongoing business development.

November 27, 2024

Blue Owl’s $660 Million Repurchase Offer Highlights Investor Confidence

Blue Owl Credit Income Corp., a Maryland-incorporated and externally managed investment company, has unveiled its plan to repurchase approximately $660.87 million in shares of its outstanding common stock. This repurchase represents 5% of the company’s aggregate shares as of the end of September 2024.

The initiative, detailed in its tender offer statement filed on November 26, 2024, targets three classes of its stock: Class S, Class D, and Class I, each valued at a par of $0.01. The tender offer is intended to provide liquidity for existing shareholders, reflecting the company’s strategic alignment with shareholder interests while strengthening confidence in its financial position.

The Tender Offer Structure

The repurchase applies to shares across all classes of common stock. With no established trading market for the company’s shares, the program offers a pivotal opportunity for investors to liquidate holdings. The filing emphasizes that directors and executives will not participate in the offer, indirectly boosting their proportional ownership following the transaction.

Financial Resilience and Sources of Funding

The repurchase program will draw from Blue Owl’s liquid resources and income streams without requiring additional external financing. This decision demonstrates the company’s financial stability and disciplined capital management strategy.

Governance and Strategic Implications

The decision aligns with the company’s broader goals of providing value to investors while maintaining the structure of an externally managed closed-end investment vehicle under the Investment Company Act of 1940. By limiting the impact on the remaining shareholders, Blue Owl preserves its operational priorities while enhancing stakeholder confidence.

Further regulatory and procedural details, including conditions and withdrawal rights, are outlined in accompanying documents to the SEC filing.