S&P assigns Blue Owl Finance, notes BBB

S&P said it assigned its BBB issuer credit rating to Blue Owl Finance LLC, which is viewed as a core subsidiary of Blue Owl Capital Inc., under the agency’s group rating methodology. S&P Global Ratings also gave its BBB issue rating to Blue Owl Capital Inc.'s planned 10-year senior unsecured notes, issued by its indirect wholly owned subsidiary Blue Owl Finance LLC. The notes are guaranteed by Blue Owl Capital Inc.'s operating subsidiaries.

Market conditions will determine the size of the offering, but S&P said it assumes Blue Owl will sell between $400 million and $500 million.

“We anticipate Blue Owl will use the proceeds to repay existing debt and for other general corporate purposes such as funding future strategic acquisitions or related transactions and growth initiatives,” the agency said in a press release.

The outlook is stable. The outlook reflects an expectation the company will operate with leverage comfortably below 1.5x during the next 18 to 24 months, S&P said.

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