Owl Rock Capital Corp unit ORCC Financing III LLC entered into a $500 million loan financing and servicing agreement with various lenders.
Owl Rock expects to sell and contribute certain loan assets to ORCC Financing III in accordance with a sale and contribution agreement. Proceeds from the credit facility will be used to finance the origination and acquisition of eligible assets by the unit, including the purchase of such assets from the company.
The facility provides for the ability to borrow, reborrow, repay and prepay advances for up to three years after Dec. 14, unless extended. Amounts drawn under the facility bear interest at London inter-bank offered rate plus a spread of 2.20% per annum.
ORCC Financing is the borrower, Owl Rock is the equityholder and services provider, Deutsche Bank AG New York Branch is the facility agent, State Street Bank and Trust Co. is the collateral agent and Cortland Capital Market Services LLC is the collateral custodian under the facility.