Blue Owl Fund Urges Rejection of Tender Offer, Citing 33% Discount to NAV
Summary
The board of Blue Owl Capital Corporation II (OBDC II), a fund managed by Blue Owl Capital (OWL), has unanimously recommended shareholders reject an unsolicited minority tender offer from Cox Capital and Saba Capital. The offer, which sought to acquire up to 8 million shares, was deemed to substantially undervalue OBDC II, representing a significant 33.2% discount to its net asset value. This development follows Blue Owl's confirmation on March 6th of receiving the unsolicited offer and comes amidst broader challenges, including Blue Owl limiting withdrawals from some private credit funds due to rising redemption pressure. The rejection aims to protect existing shareholder value by preventing a sale at a deeply discounted price. Investors will be watching for any further moves by Cox and Saba, as well as Blue Owl's ongoing efforts to manage liquidity and valuation concerns across its funds.
At the time of this announcement, OBDC was trading at $10.91 on NYSE in the Finance sector, with a market capitalization of approximately $5.5B. The 52-week trading range was $10.70 to $15.36. This news item was assessed with neutral market sentiment and an importance score of 8 out of 10. Source: Reuters.