Owl Rock Capital Corp unit ORCC Financing IV LLC on Aug. 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 Aug. 2, unless the revolving loans will either be terminated or converted to term loans.
The credit facility is scheduled to mature Aug. 1, 2029, and it is secured by a first priority security interest in ORCC Financing IV's assets.