Blue Owl Capital Enhances Market Position with Completed Merger
Deal News | Jan 13, 2025 | Blue Owl Credit Advisors LLC
Blue Owl Capital Corporation has successfully merged with Blue Owl Capital Corporation III, establishing itself as the second largest externally-managed, publicly traded Business Development Company (BDC) by total assets, with an impressive $18.6 billion at fair value and investments in 232 portfolio companies. The merger positions Blue Owl Capital Corporation favorably in the market by increasing its portfolio diversity and maintaining strong credit quality. The transaction allowed for legacy OBDC shareholders to own approximately 76% of the new company. Key financial and legal advisors were BofA Securities, Truist Securities, and Kirkland & Ellis LLP among others. The merger is considered central to OBDC’s strategy of leveraging enhanced scale for delivering attractive risk-adjusted returns.
Sectors
- Financial Services
- Investment Advisory
- Legal Services
Geography
- United States – The merger involves primarily U.S.-based companies, with Blue Owl Capital Corporation focusing on the U.S. middle-market.
Industry
- Financial Services – The merger involves Blue Owl Capital Corporation, which is a specialty finance company part of the larger Financial Services sector, focusing on middle-market lending.
- Investment Advisory – Blue Owl Credit Advisors LLC acts as an investment adviser, overseeing the management of Blue Owl Capital Corporation’s activities and investments.
- Legal Services – Multiple legal firms were involved in advising both OBDC and OBDE, crucial for executing the merger transaction.
Financials
- $18.6 billion – Total assets at fair value of the combined company post-merger.
- $4.25 million – Reimbursement amount for merger-associated fees and expenses by Blue Owl Credit Advisors LLC.
- 0.9779 – Shares exchange ratio of OBDC common stock for each share of OBDE common stock.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Blue Owl Capital Corporation | Target company/Acquirer | Company | A specialty finance company focused on lending to U.S. middle-market companies. |
| Blue Owl Capital Corporation III | Selling Company | Company | Previously operated separately, merged with Blue Owl Capital Corporation. |
| Blue Owl Credit Advisors LLC | Investment Adviser | Company | An SEC-registered investment adviser managing Blue Owl Capital Corporation and its mergers. |
| Craig W. Packer | CEO | Person | Chief Executive Officer of Blue Owl Capital Corporation. |
| BofA Securities | Financial Advisor | Company | Served as a lead financial advisor for OBDC in the merger. |
| Truist Securities, Inc. | Financial Advisor | Company | Co-financial advisor for OBDC in the merger. |
| ING Financial Markets LLC | Co-Financial Advisor | Company | Advised OBDC on financial aspects of the merger. |
| MUFG Bank, Ltd | Co-Financial Advisor | Company | Provided financial advisory services to OBDC. |
| Eversheds Sutherland (US) LLP | Legal Counsel | Company | Legal counsel to the special committee of OBDC. |
| Keefe, Bruyette & Woods | Financial Advisor | Company | Lead financial advisor to OBDE in the merger. |
| SMBC | Co-Financial Advisor | Company | Advised OBDE financially during the merger process. |
| Stradley Ronon Stevens & Young, LLP | Legal Counsel | Company | Served as legal counsel to the special committee of OBDE. |
| Kirkland & Ellis LLP | Legal Counsel | Company | Served as legal counsel to the investment advisers of both OBDC and OBDE. |