Pimco Buys All $400 Million of Bonds Sold by Blue Owl BDC
Pacific Investment Management Co. bought all $400 million of bonds issued Monday by a Blue Owl Capital Inc. private credit fund, according to people with knowledge of the matter.
The purchase comes amid a selloff that’s pushed spreads on notes from similar funds to multiyear highs in recent weeks, fueled in part by concerns over lending standards and exposure to software companies vulnerable to disruption from AI. Whether Pimco intends to hold onto the bonds is an open question, with at least one secondary-market trade of more than $5 million occurring since the sale, Trace data show.
Regardless, the deal is a vote of confidence for a private credit industry that’s been battered by record redemption requests and deepening concerns over valuations, liquidity and transparency. On Tuesday a Goldman Sachs Group Inc. private credit vehicle sold $750 million of bonds, and bankers say more funds could look to raise financing in the coming days.
Representatives for Pimco, Blue Owl and Morgan Stanley, the sole bookrunner on the offering, declined to comment.
The bonds were sold by Blue Owl Capital Corp. — known as OBDC — that provides direct loans to mostly small and mid-size companies. As well as publicly-traded business development companies such as OBDC, private credit funds like Blue Owl operate non-traded BDCs, which are the ones currently dealing with heightened redemption requests.
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