Blue Owl Credit Income Sells $1 Billion of Notes to Refinance a 3.125% Maturity

The $300 million portion is a tack-on that lifts the BDC’s 2031 notes to $800 million outstanding, with proceeds also earmarked for a revolver drawn at $591.5 million.

September 16, 2026

Blue Owl Credit Income Corp. has raised $1 billion in the institutional unsecured market, closing a two-part note sale on September 14 that gives the non-traded business development company cash in hand ahead of a maturity falling on September 23.

The company sold $700 million of new 6.250 percent notes due June 2029 and a $300 million add-on to its existing 6.550 percent notes due October 2031. Net proceeds came to roughly $988.1 million after initial purchaser fees and about $3.0 million in estimated offering expenses.

Blue Owl Credit Income plans to apply the money to borrowings under its senior secured revolving credit facility, which runs to October 2029, to its 3.125 percent notes maturing later this month, and to other secured financings. The refinancing marks a steep repricing of that near-term maturity, exchanging a 3.125 percent coupon for one at 6.250 percent on the new 2029 paper.

A Tack-On to the June Series

The 2031 tranche was issued as additional notes under the same indenture as the $500 million series the company placed in June, and will trade as a single series with it on identical terms apart from issue date and offering price. That brings total 2031 notes outstanding to $800 million.

Where the Notes Sit

Both tranches are direct, general unsecured obligations ranking equally with the company’s other unsecured debt, of which $7.2 billion was outstanding at the end of June. Ahead of them sit two layers, measured as of June 30:

• secured borrowings, to the extent of their collateral, including approximately $591.5 million drawn on the revolver;
• obligations at the subsidiary and financing-vehicle level, including roughly $5.8 billion under special purpose vehicle asset credit facilities and roughly $3.6 billion in collateralized loan obligation transactions.

For an unsecured buyer, that layering is the practical context, and the stated intention to pay down the revolver shifts a slice of the balance sheet from secured to unsecured.

Terms and Protections

The indenture requires the company to observe the asset coverage provisions of Section 18(a)(1)(A) of the Investment Company Act, as modified by Section 61(a), for as long as the notes are outstanding, whether or not it remains subject to those requirements. It must also furnish financial information to holders and the trustee should it fall outside Exchange Act reporting. Holders can require repurchase at par plus accrued interest upon a change of control repurchase event.

The 2029 notes pay interest each June 15 and December 15, beginning in December, and are callable in whole or part at the redemption prices set in the indenture. The 2031 notes pay each April 15 and October 15, with the first payment due next month. Truist Bank serves as trustee under a base indenture dating to September 2021, supplemented for the 2029 notes on the closing date.

Both tranches were sold under a purchase agreement dated September 9 to initial purchasers represented by Goldman Sachs, BofA Securities, MUFG Securities Americas, Scotia Capital (USA) and SMBC Nikko Securities America, in a private placement resold to qualified institutional buyers under Rule 144A and to non-U.S. persons under Regulation S.

An Exchange Offer to Come

Registration rights agreements accompany each tranche, obligating the company to register an exchange offer for notes with substantially identical terms. The outside dates are September 14, 2027 for the 2029 notes and June 11, 2027 for the 2031 add-on, the latter tracking the original June issuance rather than this month’s closing. Missing those deadlines triggers additional interest to holders.

Blue Owl Credit Income has no securities listed on an exchange. Its unsecured note program nonetheless now spans multiple series and more than $7 billion outstanding, placed with institutional buyers rather than through the retail channel that supplies the company’s equity.