Blue Owl Terminates $18.9B OBDC–OBDC II Merger, Citing Market Conditions 

Blue Owl Capital Corporation (OBDC) and Blue Owl Capital Corporation II (OBDC II) announced that they have terminated their proposed $18.9 billion merger, which would have combined the publicly listed OBDC with its non-traded BDC counterpart. The firms plan to revisit strategic alternatives in the future but said current market conditions do not support moving forward at this time. 

According to the announcement, the Boards of both vehicles—acting on management’s recommendation—determined that halting the merger was in the best interests of shareholders, underscoring Blue Owl’s stated commitment to disciplined capital decisions. 

“While we continue to believe that combining OBDC and OBDC II could create meaningful long-term value for shareholders, we are no longer pursuing the merger at this point given current market conditions,” said Craig W. Packer, CEO of both entities. “Both funds remain strong, with excellent fundamentals, and we are confident in our ability to deliver attractive returns independently as we continue to work with the Board to consider the best future opportunities for OBDC II.” 

Looking ahead, OBDC II plans, subject to Board approval, to reinstate its tender program in the first quarter of 2026, offering liquidity options to shareholders after the suspension tied to the proposed merger. Meanwhile, OBDC’s previously announced $200 million share repurchase program remains active.