Blue Owl to Create $18.9B BDC Through Merger of OBDC and OBDC II 

Blue Owl Capital Corporation (OBDC) and Blue Owl Capital Corporation II have agreed to merge in a deal that will create a $18.9 billion business development company, reinforcing OBDC’s position as the second largest publicly traded BDC. The all-stock transaction aims to streamline Blue Owl’s BDC platform and enhance scale, liquidity, and operational efficiency. The merger is subject to OBDC II shareholder approval and customary closing conditions. 

The combined BDC will hold investments across 239 portfolio companies, with 80% in senior secured loans and just 1.3% of assets on non-accrual. With 98% portfolio overlap, integration risk is minimal. Management expects roughly $5 million in first-year cost synergies, with potential net investment income accretion over time as financing costs decline and scale improves. The merger is also intended to broaden investor participation and boost share liquidity. 

OBDC has also authorized a new $200 million share repurchase program. The merged entity will remain externally managed by Blue Owl Credit Advisors and trade under the ticker “OBDC”. Closing is expected in Q1 2026.