Blue Owl Technology Finance closes $150M note placement, lifting recent debt to $800M
What's the deal? Blue Owl Technology Finance Corp.Dealroom has a profile for this one. Try Dealroom → (NYSE: OTF) has closed a private placement of $150 million in 7.60% senior unsecured notes due September 3, 2032. The specialty finance company announced the deal on September 4, 2026.
Why now? This is OTF's third financing since June 30, 2026, bringing total debt capital raised in that window to $800 million. In August, it issued an additional $400 million of its 6.500% notes due 2029 and raised $250 million through a special purpose vehicle facility secured by portfolio investments.
What's the endgame? OTF is a business development company that makes debt and equity investments in US technology firms, with a strategic focus on software. As of June 30, 2026, it held investments in 205 portfolio companies with an aggregate fair value of $14.7 billion.
Chief executive officer Craig W. Packer said the fresh capital "further strengthens and diversifies our funding base," positioning OTF "to grow the portfolio and capitalize on an increasingly attractive environment for technology investing."
By the numbers: In the second quarter, OTF issued $500 million of 6.500% notes due 2029, added $150 million of secured financing, and extended its $2.7 billion revolving credit facility. Every existing bank partner renewed, and one new lender was added. OTF ended the quarter with more than $2 billion in cash and available capacity, and repaid its notes due June 2026 at maturity.
What could go wrong? The new notes add long-term interest obligations at a 7.60% rate, and the $800 million in recent financing raises OTF's overall leverage. The company cites one of the lowest non-accrual rates in the BDC sector as support for its access to debt investors and banks.
The signal: The steady stack of unsecured notes, secured facilities, and renewed bank commitments points to continued investor appetite for lending to technology-focused BDCs — and to OTF's bet that the environment for software and tech credit is turning more favourable.
Read more: stocktitan.net
Image credit: Blue Owl Capital
