Blue Owl Capital Corporation III Extends Credit Facility with Second Amended and Restated Agreement

Blue Owl Capital Corporation III (NYSE:OBDE) recently announced an update regarding its financial agreements. On November 21, 2024, the company entered into the Second Amended and Restated Senior Secured Revolving Credit Agreement (A&R Facility). This agreement supersedes the previous Amended and Restated Senior Secured Revolving Credit Agreement, which was dated December 14, 2022, and amended on December 21, 2023.

The A&R Facility involves Blue Owl Capital Corporation III as the Borrower, various lenders, and JPMorgan Chase Bank, N.A. acting as the Administrative Agent. Key aspects of the amended agreement include the extension of the revolver availability period from December 2027 to November 2028, an extension of the scheduled maturity date from December 2028 to November 2029, and an increase in the total facility amount from $600,000,000 to $700,000,000.

Other notable modifications include a reduction in the unused fee rate, adjustments in the applicable margin based on specific debt conditions, and the resetting of the minimum shareholders’ equity test. The A&R Facility allows Blue Owl Capital Corporation III to utilize the proceeds for general corporate purposes, including funding portfolio investments.

The agreement further outlines that the initial maximum principal amount of the A&R Facility stands at $700,000,000, subject to the company’s portfolio investments and outstanding indebtedness. The maximum capacity could potentially expand to $1,100,000,000 through an additional financing option provided by existing and new lenders.

The A&R Facility is secured by a first-priority interest in a considerable portion of the company’s portfolio investments held by Blue Owl Capital Corporation III and specific domestic subsidiaries formed or acquired in the future.

The filing also details the terms for borrowing in U.S. dollars or other permissible currencies, each carrying distinct interest rates. The A&R Facility imposes customary covenants, including limitations on incurring additional indebtedness, making distributions to shareholders, and certain financial covenants related to asset coverage and liquidity, among others.

Incorporated into the filing, the company also disclosed the creation of a direct financial obligation, referencing the details specified in Item 1.01. Additionally, the filing lists the agreement as an exhibit under Item 9.01, providing the specifics of the Second Amended and Restated Senior Secured Revolving Credit Agreement.

Blue Owl Capital Corporation III’s endeavor to extend its credit facility reflects a strategic move to bolster its financial capabilities and support future business activities.

The news came as Blue Owl Capital Corporation III seeks to solidify its financial structure and enhance its operational agility in the market.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Blue Owl Capital Co. III’s 8K filing here.

Blue Owl Capital Co. III Company Profile

Blue Owl Capital Corporation is a specialty finance company focused on lending to U.S. middle-market companies. Blue Owl Capital Corporation is based in NEW YORK.