HedgeCo.Net — Blue Owl Technology Finance Corp. (NYSE: OTF) priced $400 million of additional 6.500% notes due October 15, 2029 on August 17, a tap of the $500 million series issued June 5, 2026. The new notes are fungible with the existing series. At settlement the series will be $900 million. Trade date was August 17. Settlement is August 20, a T+3 close. Kroll Bond Rating Agency assigned BBB, outlook stable.
The issue price is 99.307% of principal plus accrued interest from June 5. Yield to maturity is 6.747%. The spread is 250 basis points over the 4.250% Treasury due August 15, 2029. Joint bookrunners on the cover include Mizuho, ING, RBC, Societe Generale, and SMBC Nikko. Proceeds will pay down existing indebtedness, including the revolving credit facility. That is a liability swap, not a growth raise.
A fungible tap that takes a June series from $500 million to $900 million is the allocator fact. Same coupon, same 2029 maturity, same series once settled. Buyers of the new notes step into an already seasoned 6.500% line at a discount, and they collect the accrued. The company is using unsecured term paper to reduce revolving or other existing balances. KBRA’s BBB and stable outlook sit on the new notes as well as the issuer’s unsecured stack.
For private-credit allocators the diligence is the refinancing, not the coupon headline. 6.500% due 2029 at a 6.747% yield is the print. Paying down the revolver with unsecured notes can free secured capacity and extend duration. It also adds $400 million of unsecured claims that rank with the June notes. Limited partners in OTF equity and holders of the existing 2029s should treat this as more of the same series, not as a new credit.
The second-order read is business-development-company unsecured supply after a quiet stretch of the third quarter. OTF came with a tap, not a new tenor, and it used the cash to cut existing debt rather than to grow the book. Watch whether more technology BDCs reopen 2029 paper at similar spreads. The dual record is $400 million, 6.500%, October 15, 2029, and a $900 million series at settlement.