By Connor Hart
Blue Owl Technology Finance Corp. and Blue Owl Technology Finance Corp. II have agreed to a merger.
The combination of these two complementary portfolios will allow for portfolio consolidation and mitigate potential integration risk, said Blue Owl Capital, which constructed and manages the funds.
OTF will be the surviving company. Under the terms of the merger, shareholders of OTF II will receive a number of shares of OTF common stock with a net asset value equal to the net asset value of shares of OTF II common stock that they hold at the time of closing, the New York asset management firm said Wednesday.
The transaction is expected to close in the second quarter of 2025, subject to certain conditions.
Both funds employ the same investment strategy, according to Blue Owl. At the end of the third quarter, approximately 84% of the investments in OTF II overlapped with those of OTF.
The merger is set to increase OFT's scale and diversity, enhance its positioning for a possible future liquidity event, improve the cost of debt and allow for more favorable financing terms, and be accretive to net investment income, the company said.
Write to Connor Hart at connor.hart@wsj.com
(END) Dow Jones Newswires
November 13, 2024 16:55 ET (21:55 GMT)
Copyright (c) 2024 Dow Jones & Company, Inc.
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