Blue Owl fund facing redemptions raises $500 million in bond sale, Bloomberg News reports

Blue Owl Capital

08/06/2026 20:57

June 8 (Reuters) - A private credit fund managed by Blue Owl Capital OWL.N, which earlier this year imposed limits on investor redemptions, has raised $500 million through an investment‑grade bond offering, Bloomberg News reported on Monday, citing a person familiar with the matter. 
Blue Owl did not immediately respond to a Reuters request for comment. 
Here are more details from the report: 
Blue Owl Credit Income Corp (OCIC) priced five-year notes at a spread of 255 basis points over U.S. Treasuries, at a reoffer price of 98.771, according to the report.
The spread tightened by about 25 basis points from initial price talk, the report added.
The proceeds will be used to repay debt, the report said.
OCIC is structured as a ​business development company, a vehicle ​that ⁠raises equity and pairs it with leverage to finance loans, mainly ⁠to ​mid-sized companies.
Wealthy investors have sought to withdraw funds from private credit vehicles in recent months, amid concerns about weakening lending standards and the potential for AI to disrupt the software sector, a key area of exposure for many such funds.
The firm had capped withdrawals at 5% of shares at two of its funds earlier in the year, after receiving a historic level of redemption requests in the first quarter.

(Reporting by Pritam Biswas in Bengaluru)
((Pritam.Biswas@thomsonreuters.com;))