v3.26.3
Debt
 9 Months Ended
Sep. 30, 2026
Debt Disclosure [Abstract]  
Debt Debt
In accordance with the 1940 Act, with certain limitations, the Company is allowed to borrow amounts such that its asset coverage, as defined in the 1940 Act, is at least 200% after such borrowing. The Company’s asset coverage was 481% and 240% as of September 30, 2026 and December 31, 2025, respectively.
Debt obligations consisted of the below as of the following periods:
As of September 30, 2026
Aggregate Principal CommittedOutstanding Principal
Unused Portion(3)
Amount Available(1)
Unamortized Debt Issuance Costs
Net Carrying Value
Revolving Credit Facility(2)
$75,000 $— $75,000 $75,000 $(1,203)$(1,203)
SPV Asset Facility I200,000 128,500 71,500 27,161 (1,592)126,908 
Total Debt$275,000 $128,500 $146,500 $102,161 $(2,795)$125,705 
_______________
(1)The amount available reflects any limitations related to each credit facility’s borrowing base.
(2)There were no outstanding borrowings on the Revolving Credit Facility as of September 30, 2026.
(3)The unused portion is the amount upon which commitment fees, if any, are based.
As of December 31, 2025
Aggregate Principal CommittedOutstanding Principal
Unused Portion(3)
Amount Available (1)
Unamortized Debt Issuance Costs
Net Carrying Value
Revolving Credit Facility(2)
$225,000 $11,598 $213,402 $213,402 $(2,314)$9,284 
SPV Asset Facility I375,000 315,000 60,000 59,265 (3,327)311,673 
2026 Notes350,000 350,000 — — (2,150)347,850 
Total Debt$950,000 $676,598 $273,402 $272,667 $(7,791)$668,807 
_______________
(1)The amount available and unused portion reflect any limitations related to each credit facility’s borrowing base.
(2)Net carrying value includes the unrealized translation gain (loss) on borrowings denominated in foreign currencies.
(3)The unused portion is the amount upon which commitment fees, if any, are based.
For the following periods, the components of interest expense were as follows:
For the Three Months Ended September 30,
For the Nine Months Ended September 30,
2026202520262025
Interest expense$2,723 $15,030 $26,832 $47,658 
Amortization of debt issuance costs247 945 6,398 3,125 
Total Interest Expense$2,970 $15,975 $33,230 $50,783 
Average interest rate(1)
6.2 %8.4 %9.3 %8.1 %
Average daily borrowings$174,478 $719,845 $386,368 $788,998 
_______________
(1)Includes the impact of fees on undrawn portions of the Company’s credit facilities for the three and nine months ended September 30, 2026, and 2025.
Revolving Credit Facility
On January 12, 2024 (the “Revolving Credit Facility Closing Date”), the Company entered into a Senior Secured Credit Agreement (as amended from time to time, the “Revolving Credit Facility”). The parties to the Revolving Credit Facility include the Company, as Borrower, the lenders and issuing banks from time to time parties thereto, Sumitomo Mitsui Banking Corporation, as Administrative Agent. On February 17, 2026, the Revolving Credit Facility was amended to reduce the maximum commitment, shorten the availability period, adjust pricing and make certain other changes. The following describes the terms of the Revolving Credit Facility as modified through February 17, 2026.
The Revolving Credit Facility is guaranteed by certain subsidiaries of the Company in existence as of February 17, 2026, and will be guaranteed by certain subsidiaries of the Company that are formed or acquired by the Company thereafter (each a “Guarantor” and collectively, the “Guarantors”). Proceeds of the Revolving Credit Facility may be used for general corporate purposes, including the funding of portfolio investments.
The Revolving Credit Facility provides for (a) a term loan in a principal amount of $25.0 million (which was paid off on December 31, 2025) and (b) subject to availability under the borrowing base, which is based on the Company’s portfolio investments and other outstanding indebtedness, a revolving credit facility in a principal amount of up to $75.0 million. The amount available for borrowing under the Revolving Credit Facility is reduced by any standby letters of credit issued through the Revolving Credit Facility. Maximum capacity under the Revolving Credit Facility may be increased through the exercise by the Company of an uncommitted accordion feature through which existing and new lenders may, at their option, agree to provide additional financing. The Revolving Credit Facility is secured by a perfected first-priority interest in substantially all of the portfolio investments held by the Company and each Guarantor, subject to certain exceptions, and includes a $10.0 million limit for swingline loans.
The availability period with respect to the revolving credit facility under the Revolving Credit Facility will terminate on October 12, 2027 (the “Revolving Credit Facility Commitment Termination Date”) and the Revolving Credit Facility will mature on January 12, 2029 (the “Revolving Credit Facility Maturity Date”). During the period from the Revolving Credit Facility Commitment Termination Date to the Revolving Credit Facility Maturity Date, the Company will be obligated to make mandatory prepayments under the Revolving Credit Facility out of the proceeds of certain asset sales and other recovery events and equity and debt issuances.
The Company may borrow amounts in U.S. dollars or certain other permitted currencies. Amounts drawn under the Revolving Credit Facility with respect to the commitments in U.S. dollars will bear interest at either (i) term SOFR plus any applicable credit adjustment spread plus margin of 2.50% per annum or (ii) the alternative base rate plus margin of 1.50% per annum. With respect to loans denominated in U.S. dollars, the Company may elect either the term SOFR or the alternative base rate at the time of drawdown,
and such loans may be converted from one rate to another at any time at the Company’s option, subject to certain conditions. Amounts drawn under the Revolving Credit Facility with respect to the commitments in other permitted currencies will bear interest at the relevant rate specified therein (including any applicable credit adjustment spread) plus margin of 2.50% per annum. The Company will also pay a fee in the range of 0.50% to 0.65% depending on daily undrawn amounts under the Revolving Credit Facility.
The Revolving Credit Facility includes customary covenants, including certain limitations on the incurrence by the Company of additional indebtedness and on the Company’s ability to make distributions to its shareholders, or redeem, repurchase or retire shares of stock, upon the occurrence of certain events and certain financial covenants related to asset coverage and liquidity and other maintenance covenants, as well as customary events of default. The Revolving Credit Facility requires a minimum asset coverage ratio with respect to the consolidated assets of the Company and its subsidiaries to senior securities that constitute indebtedness of no less than 1.50 to 1.00 at any time.
SPV Asset Facility I
On December 1, 2017, ORCC II Financing LLC and OR Lending II LLC (collectively, the “Subsidiaries”), each a Delaware limited liability company and a wholly-owned subsidiary of the Company, entered into a Credit Agreement (the “SPV Asset Facility I”). Parties to the SPV Asset Facility I include ORCC II Financing LLC, as Borrower, and the lenders from time to time parties thereto (the “SPV I Lenders”), Goldman Sachs Bank USA as Sole Lead Arranger, Syndication Agent and Administrative Agent, State Street Bank and Trust Company as Collateral Administrator and Collateral Agent and Cortland Capital Market Services LLC as Collateral Custodian. From time to time, the parties to the SPV Asset Facility I have amended the SPV Asset Facility I and the related transaction documents to remove OR Lending II LLC as a borrower and make various other changes. The following describes the terms of the SPV Asset Facility I as amended through June 25, 2026.
Pursuant to the SPV Asset Facility I, from time to time, the Company sells and contributes certain investments to the Subsidiaries pursuant to sale and contribution agreements by and between the Company and the Subsidiaries. No gain or loss is recognized as a result of these contributions. Proceeds from the SPV Asset Facility I are used to finance the origination and acquisition of eligible assets by the Subsidiaries, including the purchase of such assets from the Company. The Company retains a residual interest in assets contributed to or acquired by the Subsidiaries through the Company’s ownership of the Subsidiaries.
The SPV Asset Facility I is secured by a perfected first priority security interest in the assets of the Subsidiaries and on any payments received by the Subsidiaries in respect of those assets. Assets pledged to lenders under the SPV Asset Facility I will not be available to pay the Company’s debts.
The SPV Asset Facility I contains customary covenants, including certain limitations on the incurrence by the Company of additional indebtedness and on the Company’s ability to make distributions to the Company’s shareholders, or redeem, repurchase or retire shares of stock, upon the occurrence of certain events, and customary events of default (with customary cure and notice provisions).
The maximum principal amount of the SPV Asset Facility I is $200.0 million (reduced from $375.0 million on June 25, 2026); the availability of this amount is subject to a borrowing base test, which is based on the amount of the Subsidiaries’ assets from time to time, and satisfaction of certain conditions, including certain concentration limits.
The SPV Asset Facility I provides for a reinvestment period up to and including November 30, 2028 (the “SPV Asset Facility I Commitment Termination Date”). Prior to the SPV Asset Facility I Commitment Termination Date, proceeds received by the Subsidiaries from interest, dividends, or fees on assets must be used to pay expenses and interest on outstanding borrowings, and the excess may be returned to the Company, subject to certain conditions. Proceeds received from principal on assets prior to the SPV Asset Facility I Commitment Termination Date must be used to make quarterly payments of principal on outstanding borrowings. Following the SPV Asset Facility I Commitment Termination Date, proceeds received by the Subsidiaries from interest and principal on collateral assets must be used to make quarterly payments of principal on outstanding borrowings. Subject to certain conditions, between quarterly payment dates prior to and after the SPV Asset Facility I Commitment Termination Date, excess interest proceeds and principal proceeds may be released to the Subsidiaries to make distributions to the Company.
The SPV Asset Facility I will mature on November 30, 2030. Amounts drawn in USD bear interest at Term SOFR plus a 2.05% spread and the spread is also payable on a portion of any undrawn amounts. The Company borrows utilizing three-month SOFR rate loans.
Borrowings of the Subsidiaries are considered the Company’s borrowings for purposes of complying with the asset coverage requirements under the 1940 Act.
In connection with the SPV Asset Facility I, the Company entered into a Non-Recourse Carveout Guaranty Agreement on December 1, 2017, which was amended and restated twice on March 11, 2019 and April 29, 2019, and was further amended by Amendment No. 1 to Second Amended and Restated Non-Recourse Carveout Guaranty Agreement, dated as of July 24, 2025 with
State Street Bank and Trust Company, on behalf of certain secured parties, and Goldman Sachs Bank USA. Pursuant to the Non-Recourse Carveout Guaranty Agreement, the Company guarantees certain losses, damages, costs, expenses, liabilities, claims and other obligations incurred in connection with certain instances of fraud or bad faith misrepresentation, material encumbrances of certain collateral, misappropriation of certain funds, certain transfers of assets, and the bad faith or willful breach of certain provisions of the SPV Asset Facility I.
CLO XIII
On September 12, 2023 (the “CLO XIII Closing Date”), the Company completed a $399.3 million term debt securitization transaction (the “CLO XIII Transaction”). The secured notes and preferred shares issued in the CLO XIII Transaction were issued by the Company’s consolidated subsidiary Owl Rock CLO XIII, LLC, a limited liability company organized under the laws of the State of Delaware (the “CLO XIII Issuer”) and were backed by a portfolio of collateral obligations consisting of middle-market loans and participation interests in middle-market loans as well as by other assets of the CLO Issuer.
The CLO XIII Transaction was executed by (A) the issuance of the following classes of notes and preferred shares pursuant to an indenture and security agreement dated as of the CLO XIII Closing Date (the “CLO XIII Indenture”), by and among the CLO XIII Issuer and State Street Bank and Trust Company: (i) $228.0 million of AAA(sf) Class A Notes, which bore interest at three-month term SOFR plus 2.55% and (ii) $32.0 million of AA(sf) Class B Notes, which bore interest at three-month term SOFR plus 3.35% (together, the “CLO XIII Secured Notes”). The CLO XIII Secured Notes were scheduled to mature on the Payment Date (as defined in the CLO XIII Indenture) in September, 2035.
On October 16, 2025, the CLO XIII Issuer redeemed and paid in full all classes of the CLO XIII Secured Notes, plus accrued interest thereon through October 16, 2025.
The CLO XIII Secured Notes were the secured obligations of the CLO XIII Issuer, and the CLO XIII Indenture included customary covenants and events of default.
2026 Notes
On November 15, 2023, the Company issued $350.0 million aggregate principal amount of its 8.450% notes due November 15, 2026 (the “2026 Notes”) in a private placement in reliance on Section 4(a)(2) of the Securities Act, and for initial resale to qualified institutional buyers pursuant to the exemption from registration provided by Rule 144A promulgated under the Securities Act.
On May 21, 2026, the Company redeemed in full all $350 million in aggregate principal amount of the 2026 Notes. The 2026 Notes would have otherwise matured on November 15, 2026. The 2026 Notes bore interest at a rate of 8.450% per year payable semi-annually on May 15 and November 15 of each year, commencing on May 15, 2024.
Maturity of Debt Obligations
The table below presents a summary of the Company’s contractual payment obligations under credit facilities and notes as of September 30, 2026:
Payments Due by Period
TotalLess than 1 year1-3 years3-5 yearsAfter 5 years
Revolving Credit Facility$— $— $— $— $— 
SPV Asset Facility I128,500 — — 128,500 — 
Total Contractual Obligations$128,500 $— $— $128,500 $—