Blue Owl Capital (NYSE:OWL) has once again returned to the bond market with a second $400 million offering, nearly one month after completing its first debt sale.

The firm is selling five-year notes with "an initial price guidance of approximately 260 basis points over Treasuries," Bloomberg reported.

The fund, called OBDC, is a specialty finance and business development company that provides direct lending solutions to U.S. middle-market companies, according to the company’s website.

Bookrunners for the offering include Goldman Sachs Group, RBC Capital Markets, Sumitomo Mitsui Banking Corporation, Deutsche Bank AG, TD Securities and Morgan Stanley. 

OBDC will use proceeds from the latest bond sale to repay existing debt, which could include a revolving credit facility or bonds due in July.

Last month, Blue Owl Capital raised $400 million from bond investors, following several months of ripples in the private credit market.

Pacific Investment Management Co. (PIMCO) fully subscribed to the $400 million bond offering. The investment-grade bonds carry a 6.4% yield and are set to mature in September 2028, according to an SEC filing.

The deal came amid a market downturn that has driven spreads on comparable fund debt to their highest levels in years. 

The widening has been fueled in part by worries about underwriting quality and the sector’s exposure to software firms that could be disrupted by advances in artificial intelligence.

Photo: T. Schneider via Shutterstock