Business Context and Reporting Period
This Form 8-K was filed by Owl Rock Capital Corporation (referred to in the metadata as Blue Owl Capital Corp) on August 4, 2016, reporting events occurring on August 1, 2016. The filing details the entry into a material definitive agreement regarding the creation of a new revolving credit facility.
Key Financial Metrics and Facility Terms
- Facility Size: Initial maximum principal amount of $250 million, subject to a borrowing base based on unused capital commitments.
- Expansion Capacity: The facility may be increased to $500 million upon request and further up to $750 million under certain circumstances with lender agreement.
- Interest Rates: LIBOR loans bear an adjusted LIBOR rate plus 1.60%. Reference rate loans bear the greatest of (A) Prime + 0.60%, (B) Federal Funds Rate + 1.10%, or (C) one-month LIBOR + 1.60%.
- Fees: An unused commitment fee of 0.25% per annum applies to unused commitments.
- Maturity: The facility matures on the earliest of three years from the closing date, 45 days prior to the termination of the commitment period under subscription agreements, or 45 days prior to any listing of common stock on a national securities exchange.
- Collateral: Secured by a first priority security interest in the Company's rights to capital commitments, capital call proceeds, and related collateral accounts.
Material Changes
The primary material change reported is the establishment of the $250 million revolving credit facility with Wells Fargo Bank, National Association (Administrative Agent) and State Street Bank and Trust Company (Lender). This creates a new direct financial obligation for the Company.
Outlook, Risks, and Contingencies
The filing notes that the Credit Facility contains customary covenants and events of default. A specific contingency exists regarding the maturity date, which is tied to the Company's subscription agreements and potential future listing of common stock. Additionally, lenders and their affiliates may receive customary fees for investment banking or financial advisory services provided to the Company.
Investor Verification Checklist
- Verify the current status of unused capital commitments to determine the actual borrowing base availability under the $250 million limit.
- Confirm the timeline for the Company's subscription agreements and any planned listing of common stock, as these events trigger early maturity of the facility.
- Review the specific customary covenants and events of default included in the agreement to assess compliance risks.
- Monitor for any future announcements regarding the exercise of the accordion feature to increase the facility to $500 million or $750 million.