SEC Filing Summary
Registrant: Owl Rock Technology Finance Corp. (the filing predates the Blue Owl name). Form 8-K: filed November 21, 2018, reporting an event on November 19, 2018.
Business Context and Reporting Period
The company entered into a revolving credit facility on November 19, 2018, with Wells Fargo Bank, National Association as administrative agent and lender, together with PNC Bank and State Street Bank and Trust Company as lenders. This filing is transaction-focused and does not report quarterly or annual operating results.
Key Financial Terms and Metrics
- Maximum initial principal amount: $350 million, subject to borrowing-base availability based on unused capital commitments.
- Potential increases: up to $700 million upon request, subject to customary conditions, with a further increase potentially permitted up to $1 billion if lenders agree.
- Interest rate: at the company’s election, adjusted LIBOR plus 1.50% or a reference rate equal to the greatest of prime plus 0.50%, federal funds rate plus 1.00%, or one-month LIBOR plus 1.50%.
- Unused commitment fee: 0.25% per annum on unused commitments.
- Maturity: generally three years from the November 19, 2018 closing date, subject to earlier termination events and an optional extension of up to 364 days if customary conditions are satisfied.
- Security: a perfected first-priority security interest in investors’ capital commitments, related capital-call rights and proceeds, and the collateral account holding those proceeds.
- The filing does not provide a clear amount drawn or outstanding under the facility as of the filing date.
- The filing does not provide revenue, profit, cash flow, margins, or liquidity balances.
Material Changes Versus Prior Comparable Period
No prior-period financial comparison is presented. The material development is the creation of the new secured revolving credit facility and the related direct financial obligation.
Guidance, Outlook, Risks, and Unusual Items
- The facility includes customary covenants and events of default, with customary cure and notice provisions.
- Maturity may be accelerated or occur earlier upon specified events, including an event of default, termination or earlier expiration of the company’s subscription commitments, or a listing of common stock on a national securities exchange.
- Borrowing capacity depends on the availability of investor capital commitments and related borrowing-base requirements.
- Lenders and their affiliates may provide investment banking, financial advisory, or other services to the company and receive customary fees and expenses.
- No management guidance or operating outlook was provided.
Important Facts for Investors to Verify
- Actual borrowings, undrawn capacity, and borrowing-base availability under the facility.
- The detailed covenants, borrowing conditions, collateral provisions, and events of default in the November 19, 2018 credit agreement.
- The scheduled termination date of the company’s subscription agreements, which may affect facility maturity.
- Applicable LIBOR or reference-rate spreads and the financial impact of unused commitment fees.
- Any subsequent amendments, increases, draws, repayments, defaults, or replacement financing.