NEW YORK - Blue Owl Capital Inc. (NYSE: OWL), an alternative asset management firm, has announced its subsidiary Blue Owl Finance LLC's plan to offer 10-year senior unsecured notes, backed by a comprehensive guarantee structure involving multiple entities within the company. The offering is subject to market conditions and other factors.
The proceeds from the sale of these notes are earmarked for the repayment of a portion of Blue Owl's existing debt under its revolving credit facility. Remaining funds will be allocated for general corporate purposes, which may include strategic acquisitions and growth initiatives.
Qualified institutional buyers will have access to the notes through Rule 144A, while non-U.S. purchasers can participate via Regulation S under the amended Securities Act of 1933. The notes have not been registered under the Securities Act or any state securities laws, implying that they may not be offered or sold within the United States without registration or an exemption.
Furthermore, Blue Owl plans to enter into a registration rights agreement, committing to an offer to exchange the notes under a registration statement with the Securities and Exchange Commission within one year of issuance.
Blue Owl, with over $165 billion in assets under management as of December 31, 2023, operates through three multi-strategy platforms: Credit, GP Strategic Capital, and Real Estate. The company emphasizes its strong permanent capital base and its team of 685 professionals in delivering private capital solutions and alternative investment opportunities.
This news article is based on a press release statement from Blue Owl Capital.
InvestingPro Insights
As Blue Owl Capital Inc. (NYSE: OWL) ventures into the financial markets with its plan to offer 10-year senior unsecured notes, the company's financial health and growth prospects are of paramount interest to potential investors. According to InvestingPro data, Blue Owl boasts a market capitalization of $21.04 billion and has experienced a robust revenue growth of 26.42% over the last twelve months as of Q4 2023. The company's gross profit margin stands impressively at 60.1%, reflecting a strong ability to control costs and maximize profitability from its revenues.
Investors evaluating the company's valuation metrics will note that Blue Owl is trading at a high Price / Book multiple of 13.77, which suggests that the market currently values the company's assets at a premium. This is supported by the company's P/E Ratio (Adjusted), which, as of the last twelve months of Q4 2023, is 91.8. Despite this high earnings multiple, the PEG Ratio—a metric that relates the P/E ratio to the expected earnings growth rate—stands at a low 0.28, indicating that the company's earnings growth may justify the higher P/E ratio.
In terms of shareholder returns, Blue Owl has demonstrated commendable performance with a one-year price total return of 86.91% as of the date provided. This aligns with one of the InvestingPro Tips highlighting Blue Owl's strong return over the last year. Additionally, the company has raised its dividend for three consecutive years, with a recent dividend growth of 16.67%, showcasing its commitment to returning value to shareholders.
For those considering an investment in Blue Owl Capital, InvestingPro offers more insights and tips that could further inform your decision-making. With the promocode PRONEWS24, investors can get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro, where there are 9 additional InvestingPro Tips available for Blue Owl. These tips offer a deeper analysis of the company's financials, market performance, and growth prospects, which could be crucial in assessing the potential success of the company's new debt offering and overall investment appeal.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.