Owl Rock Capital Corporation Obtains $250 Million Financing
August 8, 2019 | James Sprow | Blue Vault
Owl Rock Capital Corporation (“ORCC”) unit ORCC Financing IV LLC on August 2 entered into a secured credit facility agreement.
The agreement was entered into with lenders, Société Générale as administrative agent, State Street Bank and Trust Co. as collateral agent, collateral administrator and custodian, and Cortland Capital Market Services LLC as document custodian.
Owl Rock expects to sell and contribute certain investments to ORCC Financing pursuant to a sale and contribution agreement between them. The credit facility’s proceeds will be used to finance the origination and acquisition of eligible assets by ORCC Financing, including the purchase of such assets from Owl Rock.
The maximum principal amount under the credit facility is $250 million and borrowings will bear interest at the London interbank offered rate plus a spread from 2.15% to 2.50%. The credit facility will allow ORCC Financing to draw term loans and also draw revolving loans for up to two years after August 2, unless the revolving loans will either be terminated or converted to term loans.
The credit facility is scheduled to mature August 1, 2029, and it is secured by a first priority security interest in ORCC Financing IV’s assets.
ORCC listed on the NYSE and began trading on July 18, 2019. On July 22, 2019, the Company closed its initial public offering (“IPO”), issuing 10 million shares of its common stock at a public offering price of $15.30 per share. Net of underwriting fees and offering costs, the Company received total cash proceeds of $141.3 million. The Company had granted the underwriters an option to purchase up to an additional 1,500,000 shares of common stock, at the public offering price, less the sales load payable by the Company, on or before August 16, 2019. That option has been exercised.
As of June 30, 2019, ORCC had a portfolio of loans to 90 companies, with a fair value of approximately $7.2 billion. As of June 30, 2019, approximately 98.2% of the portfolio was invested in secured debt.
Sources: S&P Global, SEC
