Owl Rock Capital Corp. on Dec. 12 completed a $396.6 million collateralized loan obligation transaction.

Owl Rock CLO II Ltd. and Owl Rock CLO II LLC issued $157 million of AAA(sf) class A-1L notes that bear interest at the three-month London interbank offered rate plus 1.75%; $40 million of AAA(sf) class A-1F notes that bear fixed interest at 3.44%; $20 million of AAA(sf) class A-2 notes that bear interest at three-month Libor plus 2.20%; $40 million of AA(sf) class B-L notes that bear interest at three-month Libor plus 2.75%; and $3 million of AA(sf) class B-F notes that bear fixed interest at 4.46%. A different benchmark rate will replace Libor as the reference interest rate for the secured notes when certain triggering events related to the end of Libor occur.

All the notes are secured by the middle-market loans, participation interests in middle-market loans and other assets of Owl Rock CLO II Ltd. All notes are scheduled to mature Jan. 20, 2031, and were privately placed by Deutsche Bank Securities Inc.

The two Owl Rock Capital units also issued about $136.6 million of subordinated securities in the form of 136,600 preferred shares at an issue price of $1,000 each. Owl Rock Capital bought all the preferred shares.

Through Jan. 20, 2022, Owl Rock CLO II Ltd. may use a portion of the proceeds from the loans backing the secured notes to purchase additional middle-market loans. Proceeds from the issuance of the notes will be used to repay revolving loans borrowed by ORCC Financing III LLC.