Two private credit funds are offering investment-grade bonds Monday, following a lull of such deals to start the third quarter.
Blackstone Private Credit Fund is seeking to raise about $500 million from its sale of five-year notes, according people familiar with the deal who asked not to be identified as they’re not authorized to speak publicly. Initial price talk is a premium of about 2.3 percentage points to Treasuries.
Meanwhile, Blue Owl Technology Finance Corp. is marketing at least $200 million of bonds that would increase the size of the fund’s June sale, a separate person said.
The duo’s offerings follow a $350 million deal by Barings Private Credit Corp. on Aug. 13. That was just the second US high-grade note sale by a BDC since the start of July, after such borrowers issued a combined $16 billion of high-grade bonds in the first half of this year, according to data compiled by Bloomberg News.
Blue Owl Capital Inc., which manages private-credit funds including Blue Owl Technology, priced $750 million of notes last week. Orders for that deal peaked at $3.3 billion.
Private credit funds managed by firms like Blue Owl have been a source of investor concern this year, as valuations of software-related debt fell due to worries about AI-related disruptions. Some, including at Blue Owl, have had to limit redemption requests. But recent second-quarter results somewhat eased worries.
The Blackstone fund, known as BCRED, most recently raised $850 million during an April bond sale.
The two BDC offerings Monday are among 12 in the US high-grade market on Monday. The deals will push August’s issuance to a record for the month.
BCRED’s transaction is being managed by Citigroup Inc., Goldman Sachs Group Inc., Royal Bank of Canada, Sumitomo Mitsui Banking Corp. and Wells Fargo & Co. The banks on Blue Owl Technology’s tap are RBC, SMBC, ING Groep NV, Mizuho Financial Group Inc. and Societe Generale SA.
Blue Owl Capital, Blackstone Inc. and the banks either declined to comment or didn’t immediately respond.
This article was provided by Bloomberg News.