A private credit fund operated by Blue Owl Capital has successfully secured $500 million through an investment-grade bond sale, Bloomberg News reported Monday, according to a source with knowledge of the transaction.
The fund had previously implemented restrictions on investor withdrawals earlier this year following unprecedented redemption requests.
Blue Owl has not yet responded to requests for comment regarding the bond sale.
According to the Bloomberg report, Blue Owl Credit Income Corp (OCIC) set the pricing for five-year notes at 255 basis points above U.S. Treasuries, with a reoffer price of 98.771.
The pricing spread narrowed by approximately 25 basis points from the initial discussions, the report indicated.
The funds raised through the bond sale will go toward debt repayment, according to the report.
OCIC operates as a business development company, which combines equity funding with borrowed capital to provide financing primarily to medium-sized businesses.
In recent months, affluent investors have attempted to pull money from private credit investments due to worries about declining lending quality and artificial intelligence’s potential impact on the software industry, which represents significant exposure for many of these funds.
Earlier this year, the company had restricted withdrawals to 5% of shares across two of its funds following an unprecedented volume of redemption requests during the first quarter.
