NEW YORK - Blue Owl Capital Inc. (NYSE: OWL), an asset management firm, has set the pricing for a $750 million offering of 6.250% Senior Notes due in 2034. The notes are being issued by Blue Owl Finance LLC, an indirect subsidiary, and are guaranteed by Blue Owl and several of its affiliates.
The company has stated that the proceeds from the sale will be utilized to repay existing debt under its revolving credit facility, with any remaining funds directed towards general corporate purposes. These may include financing future strategic acquisitions and growth initiatives.
The sale of the notes is being conducted under Rule 144A to qualified institutional buyers and to non-U.S. persons in compliance with Regulation S under the Securities Act of 1933. Blue Owl also plans to enter into a registration rights agreement, which will involve an offer to exchange the notes for registered ones within a year of their issue date, pending a registration statement with the Securities and Exchange Commission.
These notes have not been registered under the Securities Act or any state securities laws and are available only through exemptions or transactions not subject to these registration requirements.
Blue Owl, with over $165 billion in assets under management as of December 31, 2023, operates across Credit, GP Strategic Capital, and Real Estate platforms. The company emphasizes its commitment to providing private capital solutions and alternative investment opportunities with the goal of delivering performance and capital preservation.
This announcement comes with the usual disclaimer that it contains forward-looking statements, which are subject to risks and uncertainties that could cause actual results to differ from those projected. Among the potential risks are the challenges of realizing the anticipated benefits of strategic acquisitions and maintaining NYSE listing, as well as broader economic and competitive factors.
The information for this report is based on a press release statement from Blue Owl Capital.
InvestingPro Insights
As Blue Owl Capital Inc. (NYSE: OWL) embarks on its strategic financial maneuver with the issuance of Senior Notes, there are several key metrics and insights from InvestingPro that highlight the company's current market position. With a market capitalization of $21.0 billion, Blue Owl showcases a significant presence in the asset management sector.
Despite a high P/E ratio of 161.79, which indicates a premium on the company's earnings, the adjusted P/E ratio based on the last twelve months as of Q4 2023 is more favorable at 91.61. This suggests a more optimistic valuation when considering near-term earnings growth.
An important InvestingPro Tip to consider is that Blue Owl has raised its dividend for three consecutive years, signaling confidence in its financial stability and commitment to shareholder returns. This is supported by a robust dividend yield of 2.86% and a dividend growth of 16.67% in the last twelve months.
Moreover, the company is expected to grow its net income this year, which could further bolster investor confidence and potentially enhance its ability to meet obligations and fund growth initiatives.
InvestingPro also notes that Blue Owl has experienced a significant price uptick, with a 33.75% three-month total return and an impressive 86.91% return over the last year. This performance is a testament to the company's strong market position and operational success.
For readers looking to delve deeper into Blue Owl's financials and future prospects, InvestingPro provides a comprehensive list of additional tips. Utilize the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, and unlock the full suite of insights and analytics that InvestingPro offers.
Investors may visit the dedicated InvestingPro page for Blue Owl Capital at https://www.investing.com/pro/OWL to explore these metrics in detail and access the 13 additional InvestingPro Tips that provide further context on the company's financial health and market performance.
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