On Dec. 21, Owl Rock Capital Corp. issued $150 million in the aggregate principal amount of senior unsecured notes to institutional investors in a private placement.
The issuance of $138.5 million of the notes occurred on Dec. 21 and $11.5 million of the notes are expected to be issued in January 2018. The notes have a fixed interest rate of 4.75% and are due on June 21, 2023. Interest on the senior notes will be due semiannually.
Additionally, on the same day, Owl Rock Capital unit ORCC Financing LLC entered into a $400 million loan and servicing agreement with certain lenders and other parties.
Under the agreement's terms, Owl Rock Capital Corp. serves as transferor and servicer, while ORCC Financing serves as borrower under an arrangement with Morgan Stanley Asset Funding Inc., as administrative agent, State Street Bank and Trust Co., as collateral agent and Cortland Capital Market Services LLC as collateral custodian, according to a Form 8-K filed Dec. 22.
The company used the proceeds from the notes and loan and servicing agreement to pay down debt under its senior secured revolving credit agreement dated as of Feb. 1 and its revolving credit agreement dated as of Aug. 1, 2016.