Blue Owl Raises $500M Through New Note Offering

The company plans to allocate most proceeds toward reducing outstanding borrowings under its credit facility.

May 27, 2025

Blue Owl Credit Income Corp. Issues $500 Million in Senior Notes Due 2028

Blue Owl Credit Income Corp. has just closed a $500 million private note offering—an important move aimed at strengthening its balance sheet and managing debt more efficiently. The 5.900% notes, due in May 2028, were sold to institutional investors in a deal completed on May 23, 2025.

The offering was executed under Rule 144A and Regulation S, which means the notes were sold to qualified institutional buyers and select non-U.S. investors. None of the securities were registered with the SEC, and resale is limited unless a registration exemption applies. Blue Owl worked with SMBC Nikko Securities America, Inc. as representative of the initial purchasers.

Once the dust settled, Blue Owl came away with approximately $491.5 million in net proceeds. Most of that will go toward paying down a portion of the company’s senior secured revolving credit facility, which had $1.4 billion outstanding as of March 31, 2025. This revolver doesn’t mature until October 2029, but the company is using this window to lock in longer-term, fixed-rate capital and free up room on the facility. Some of the lenders in that facility are affiliated with the underwriters of the new notes—so a portion of the offering may flow right back to them.

The notes will pay interest semi-annually beginning in November 2025 and can be redeemed early at the company’s option, based on a defined pricing schedule. They were issued under a previously established indenture and a new supplemental agreement specific to this offering.

Key Capital Structure Considerations

From a structure standpoint, the notes:

• Rank above subordinated debt


• Share equal standing with existing unsecured obligations


• Are junior to any secured debt or liabilities at subsidiaries or special-purpose vehicles

As of March 31, 2025, Blue Owl reported the following outstanding liabilities:

• $5.6 billion in other unsecured notes


• $1.4 billion under the revolving credit facility


• $3.4 billion in asset-based credit facilities


• $2.4 billion in collateralized loan obligation (CLO) transactions

Forward Planning and Registration Rights

To support potential secondary market liquidity, Blue Owl entered into a registration rights agreement as part of the transaction. Under this agreement, the company must file a registration statement and complete an exchange offer for registered notes by May 2026. If that deadline isn’t met, holders of the notes will receive additional interest payments.

With this issuance, Blue Owl is taking steps to optimize its capital structure, reduce near-term liabilities, and maintain flexibility for the future—all while giving institutional investors access to a new, income-generating instrument backed by a major credit market participant.