Blue Owl Technology Finance Raises $800M in Debt

Blue Owl Technology Finance Corp. (OTF) has raised $800 million in debt financing since June 30, closing a $150 million private placement of senior unsecured notes as the business development company continues to fund a growing portfolio of technology-related investments.

The latest financing consists of $150 million of 7.60% senior unsecured notes due Sept. 3, 2032. The notes were sold in a private placement to qualified institutional investors and pay interest semiannually. The transaction was OTF’s third financing since the second quarter ended.

In August, the company issued an additional $400 million of 6.50% notes due 2029 and raised $250 million through a special-purpose vehicle facility secured by a pool of portfolio investments. The mix of unsecured notes and asset-backed financing is intended to broaden the company’s capital sources and preserve balance sheet flexibility.

“OTF’s portfolio continues to perform well, with one of the lowest non-accrual rates in the BDC sector, and we continue to see strong support from both debt investors and our bank partners,” Craig W. Packer, the company’s CEO, said.

The latest debt activity follows a busy second quarter. OTF issued $500 million of 6.50% notes due 2029, added $150 million of secured financing and extended its $2.7 billion revolving credit facility. Every existing bank lender renewed its commitment, and the company added a new lending relationship that provided additional capacity.

OTF ended the second quarter with more than $2 billion of cash and available borrowing capacity across its credit facilities. It also repaid notes that matured in June.

The BDC invests in debt and equity securities of U.S. technology companies, with an emphasis on software. As of June 30, its portfolio included investments in 205 companies across 39 industries with an aggregate fair value of $14.7 billion.