Owl Rock Capital Corp. on May 28 completed a $596.1 million collateralized loan obligation transaction.

The CLO was executed by the issuance of $242 million of AAA(sf) class A notes bearing interest equal to the three-month London interbank offered rate plus 1.80%; $30 million of AAA(sf) class A-F notes bearing interest at 4.165%; and $68 million of AA(sf) class B notes bearing interest equal to three-month Libor plus 2.70%.

Owl Rock and its units also borrowed $50 million under floating-rate loans, which were also part of the CLO, at interest equal to three month-Libor plus 1.80%.

The notes and loans are secured by middle-market loans, participation interests in middle-market loans, and other assets of Owl Rock CLO I Ltd., the issuer of the CLO.

Owl Rock CLO I issued 206,106 preferred shares worth about $206.1 million as part of the issuance of secured notes and the borrowing of floating-rate loans. Owl Rock Capital purchased all of these shares, according to a Form 8-K dated May 31.

Owl Rock CLO I can use a portion of the proceeds it will receive until May 20, 2023, to purchase additional middle-market loans under the guidance of Owl Rock Capital Advisors LLC in its capacity as the collateral manager.

Natixis Securities Americas LLC and SG Americas Securities LLC handled the private placement of the notes.