On March 6 2026, Blue Owl Capital Corporation II (OBDC II) confirmed that Cox Capital Partners and Saba Capital Management had launched an unsolicited minority tender offer for up to 8 million shares, representing less than 7% of the company’s outstanding shares. The offer price of $3.80 per share reflects a 34.9% discount to the dividend‑reinvestment‑plan issuance value disclosed on February 26 2026, after subtracting the expected $2.50 per share return of capital that OBDC II plans to distribute on March 31 2026. The tender offer will remain open until April 24 2026, giving shareholders a 49‑day window to respond.
OBDC II’s board has indicated that shareholders are not required to tender their shares, but the company will advise its investors of its recommendation in due course. The board’s review will weigh the discounted offer against the company’s own liquidity plan, which includes a special cash return of capital equal to 30% of NAV. Shareholders of record as of March 24 2026 will receive the $2.50 per share payout on March 31 2026, a move that is intended to provide a more attractive exit option than the discounted tender offer.
Financially, OBDC II reported approximately $447 million in cash and undrawn debt capacity, a net debt‑to‑equity ratio of 0.52x, and a portfolio of 183 companies with a combined fair value of $1.6 billion as of December 31 2025. The company has generated 9.1% annualized returns since inception, underscoring its ability to generate value for investors while maintaining a solid liquidity buffer.
The tender offer reflects broader liquidity pressures in the business‑development‑company (BDC) sector, where retail investors increasingly seek secondary exit options amid rising redemption requests and gate provisions. Saba Capital, known for its activist strategy in closed‑end funds trading at discounts to NAV, and Cox Capital, a specialist in secondary liquidity solutions for illiquid alternative investments, are positioning themselves as providers of a quick exit for OBDC II shareholders. Blue Owl Capital Inc. (OWL) itself has seen its stock price fall 39% over the past six months, trading near its 52‑week low, a trend that highlights market concerns about the company’s BDC portfolio and its ability to deliver consistent returns.
For shareholders, the board’s decision will determine whether the discounted tender offer or the company’s planned return of capital offers a better value. The 30% return of capital, delivered at $2.50 per share, is roughly 8% higher than the tender offer price, and it is scheduled to be paid before the tender offer expires. The board’s review will therefore consider the timing, the relative discount, and the potential impact on OBDC II’s share price and liquidity profile. The outcome will have implications for the company’s capital structure, its ability to fund future investments, and the overall confidence of investors in Blue Owl’s BDC strategy.
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