
KBRA assigns a rating of BBB to Blue Owl Technology Finance Corp.&#39;s (NYSE:OTF, the company&#34;, )) $400 million 6.500% senior unsecured notes due October 15, 2029. The rating Outlook is Stable.


Key Credit

KBRA assigns a rating of BBB to Blue Owl Technology Finance Corp.&#39;s (NYSE:<a class="ticker" href="https://www.benzinga.com/quote/OTF">OTF</a>, the company&#34, )) $400 million 6.500% senior unsecured notes due October 15, 2029. The rating Outlook is Stable.


Key Credit Considerations


The rating is supported by the company&#39;s ties to the significant $158.1 billion Blue Owl Credit platform as well as the derived benefits from OTF&#39;s SEC exemptive relief to co-invest with other funds managed by the adviser and its affiliates, including the $26 billion deployed across the technology strategy. Furthermore, the experienced management team which has decades of experience working in the private markets has built a high credit quality direct lending platform to finance mainly sponsor-backed portfolio companies in the upper middle market. The company has a team of 40+ tech dedicated investment professionals in Menlo Park, CA, and New York, NY, which supports origination and risk management.


Following the completion of the 2025 merger with its affiliated technology business development company, OTF has $14.7 billion of total investments at fair value as of June 30, 2026. The investment portfolio is well diversified consisting of 205 technology focused portfolio companies with 78% of the investment portfolio at FV comprised of senior secured first lien loans. The top three sector exposures by end market are Systems Software (17.5%), Application Software (15.3%), and Health Care Technology (12.4%). The company has invested in 39 sectors that are diversified by subsectors and end-markets. Furthermore, the top 10 positions represent only 16% of the portfolio at FV. The portfolio companies are backed by high quality private equity sponsors with significant dry powder, which can support portfolio companies in adverse markets. The portfolio companies had a weighted average EBITDA of $291 million with a weighted average revenue of $1.0 billion and enterprise value of $5.7 billion as of 2Q26. Credit quality remains solid with two portfolio companies on non-accrual status, accounting for only 0.6% and 0.1% of total investments at cost and FV, respectively. Furthermore, 92.4% of the portfolio is internally rated at the highest ratings of 1 or 2, which indicate that the loan is performing at or above at underwriting expectations. Approximately 98% of PIK is at origination.


Further supporting the rating is the company&#39;s diversified funding sources, including bank revolving credit facilities, SPV asset facilities, CLOs, and unsecured notes. The company has solid access to the capital markets, raising unsecured debt multiple times over the past few years. Unsecured debt to total debt outstanding was 36.2% at June 30, 2026, providing adequate asset encumbrance for unsecured noteholders and financial flexibility. Gross and net leverage were relatively low at 0.96x and 0.93, respectively, and remain within OTF&#39;s target net leverage range of 0.90x to 1.25x, allowing for a solid cushion in the event of market volatility. KBRA expects leverage to remain moderate given its technology focus and high but declining exposure to preferred and common equity investments (11.6%). The proceeds of note issuance will be used to repay secured debt, allowing for net neutral leverage. As of June 30, 2026, the company had adequate liquidity, with ~$1.8 billion in available bank lines and $210 million of unrestricted cash set against $950 million of notes maturing within the next two years. The company also had ~$1.9 billion of unfunded commitments, of which, a substantial portion is tied to covenants and transactions and are not expected to be drawn.


Counterbalancing these strengths are the company&#39;s requirement to distribute 90% of earnings, negating the ability to retain earnings, illiquid assets, and increased Net Asset Value (NAV) volatility with a relatively sizeable portfolio of equity and preferred stock investments relative to peers. While these investments have declined meaningfully, the company has elevated exposure to software and other technology-related sectors that heighten sensitivity to shifts in market sentiment, particularly amid uncertainty around AI-driven disruption and evolving competitive dynamics. Furthermore, there is potential for increased non-accrual investments with a more uncertain economic environment with high base rates, inflation, and geopolitical risks.


Formed in July 2018 as a Maryland corporation, Blue Owl Technology Finance Corp. is a publicly traded externally managed, closed-end management investment company that has elected to be regulated as a BDC under the Investment Company Act of 1940 and has elected to be treated as a regulated investment company for tax purposes. OTF is externally managed by Blue Owl Technology Credit Advisors LLC (&#34;the Adviser&#34;). The Adviser is an indirect subsidiary of Blue Owl Capital (NYSE:<a class="ticker" href="https://www.benzinga.com/quote/OWL">OWL</a>), a global alternative asset manager with $319+ billion of AUM.


Rating Sensitivities


A rating upgrade is not expected over the medium term. A rating downgrade and/or Outlook change to Negative could be considered if there is a significant downturn in the U.S. economy with negative impact on OTF&#39;s earnings performance, asset quality, and leverage. A significant change in senior management and/or risk management policies could also lead to negative rating action.


To access ratings and relevant documents, click <a xmlns="http://www.w3.org/1999/xhtml" rel="nofollow" href="https://cts.businesswire.com/ct/CT?id=smartlink&amp;url=https%3A%2F%2Fwww.kbra.com%2Fissuers%2F54265%2Fsecurity-ratings&amp;esheet=54590914&amp;newsitemid=20260817197990&amp;lan=en-US&amp;anchor=here&amp;index=1&amp;md5=91431a2cb5e53a23cb98ba80ed2886cf" shape="rect">here</a>.


Methodology

<ul xmlns="http://www.w3.org/1999/xhtml" class="bwlistsquare">
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</li>
</ul>
Disclosures


A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located <a xmlns="http://www.w3.org/1999/xhtml" rel="nofollow" href="https://cts.businesswire.com/ct/CT?id=smartlink&amp;url=https%3A%2F%2Fwww.kbra.com%2Fissuers%2F54265%2Fdisclosures&amp;esheet=54590914&amp;newsitemid=20260817197990&amp;lan=en-US&amp;anchor=here&amp;index=3&amp;md5=6548af0b97730eb0625cf5dada38dfe1" shape="rect">here</a>.


Information on the meaning of each rating category can be located <a xmlns="http://www.w3.org/1999/xhtml" rel="nofollow" href="https://cts.businesswire.com/ct/CT?id=smartlink&amp;url=https%3A%2F%2Fwww.kbra.com%2Funderstanding-ratings%2Frating-scales%2Flong-term-credit-rating&amp;esheet=54590914&amp;newsitemid=20260817197990&amp;lan=en-US&amp;anchor=here&amp;index=4&amp;md5=bd2c8af991ae4b92528d3b0d61628eb1" shape="rect">here</a>.


Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at <a xmlns="http://www.w3.org/1999/xhtml" rel="nofollow" href="https://cts.businesswire.com/ct/CT?id=smartlink&amp;url=https%3A%2F%2Fwww.kbra.com&amp;esheet=54590914&amp;newsitemid=20260817197990&amp;lan=en-US&amp;anchor=www.kbra.com&amp;index=5&amp;md5=281f2bbec2a5b8040eeb8418f3de4665" shape="rect">www.kbra.com</a>.


About KBRA


Kroll Bond Rating Agency, LLC (KBRA), one of the major credit rating agencies (CRA), is a full-service CRA registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a Designated Rating Organization (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan’s Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S.


Doc ID: 1016552

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Analytical Contacts


Teri Seelig, Managing Director (Lead Analyst)
 +1 646-731-2386
 <a xmlns="http://www.w3.org/1999/xhtml" rel="nofollow" href="mailto:teri.seelig@kbra.com" shape="rect">teri.seelig@kbra.com</a>


Josh Mandelbaum, Director
 +1 301-969-3186
 <a xmlns="http://www.w3.org/1999/xhtml" rel="nofollow" href="mailto:josh.mandelbaum@kbra.com" shape="rect">josh.mandelbaum@kbra.com</a>


Business Development Contact


Constantine Schidlovsky, Senior Director
 +1 646-731-1338
 <a xmlns="http://www.w3.org/1999/xhtml" rel="nofollow" href="mailto:constantine.schidlovsky@kbra.com" shape="rect">constantine.schidlovsky@kbra.com</a>

KBRA Assigns Rating to Blue Owl Technology Finance Corp.'s $400 Million Senior Unsecured Notes due 2029

KBRA BBB Rating on OTF Notes; Stable Outlook with Solid Tech Portfolio

<section class="insight" data-version="1">
 <section data-block="information">
 <h3>Information</h3>
 KBRA assigns a rating of BBB to Blue Owl Technology Finance Corp.&amp;#39;s (NYSE:OTF, the company&amp;#34;, )) $400 million 6.500% senior unsecured notes due October 15, 2029. The rating Outlook is Stable.


Key Credit
 </section>

 <section data-block="ai-summary-paragraph">
 <h3>AI Summary</h3>
 KBRA assigns BBB to Blue Owl Technology Finance&#039;s $400M 6.5% notes due 2029, with a Stable Outlook. Post-merger, OTF holds $14.7B of FV investments across 205 tech-focused companies, backed by strong sponsor relationships. NAV volatility and a 90% earnings-distribution rule remain key risks amid AI and tech-cycle uncertainty.
 </section>

 <section data-block="ai-summary-bullets">
 <h3>Key Points</h3>
 <ul><li>KBRA assigns BBB rating to Blue Owl Technology Finance Corp.&#039;s $400M notes due 10/15/2029; Outlook Stable.</li><li>OTF reports FV investments of $14.7B as of 6/30/2026 across 205 tech issuers.</li><li>78% of FV is senior secured first lien loans; portfolio diversified across software/health tech.</li><li>Leverage remains modest (gross 0.96x, net 0.93x); liquidity robust ( ~$1.8B lines, $210M cash).</li></ul>
 </section>

 <section data-block="companies-mentioned">
 <h3>Companies Mentioned</h3>
 <ul><li>Blue Owl Technology Finance Corp. (OTF): Issuer of the notes; rating action directly relevant to OTF&#039;s debt cost and funding flexibility.</li><li>Blue Owl Capital (OWL): Parent firm; platform scale and capital strategy influence OTF&#039;s access to funding and cooperation with affiliates.</li><li>Blue Owl Technology Credit Advisors LLC: Adviser; provides external management and SEC exemptive relief enabling co-investments.</li></ul>
 </section>

 <section data-block="category">
 <h3>Corporate Developments</h3>
 Category: Corporate Developments. The piece centers on a credit rating action and debt-financing structure for a BDC, influencing cost of capital, leverage, and investor perception of OTF&#039;s risk profile.
 </section>

 <section data-block="market-moving">
 <h3>Market-Moving</h3>
 <ul><li>KBRA BBB rating for OTF notes may support debt cost stability in near term.</li><li>Proceeds from note issuance to repay secured debt could improve net leverage.</li><li>Leverage at 0.96x gross / 0.93x net remains within target 0.90x–1.25x.</li><li>NAV volatility risk persists due to high software/tech exposure and 90% payout.</li></ul>
 </section>

 <section data-block="key-facts">
 <h3>Key Facts</h3>
 <ul><li>Notes: $400M 6.50% senior unsecured due Oct 15, 2029.</li><li>Issuer: Blue Owl Technology Finance Corp. (OTF); Rating: BBB; Outlook: Stable.</li><li>FV investments: $14.7B as of 6/30/2026; 205 tech portfolio companies; 78% FV senior secured.</li><li>Leverage: gross 0.96x; net 0.93x; unsecured debt to total debt 36.2%.</li><li>Liquidity: ~$1.8B bank lines; $210M cash; $950M notes maturing in 2 years; ~$1.9B unfunded commitments.</li></ul>
 </section>

 <section data-block="trading-thesis">
 <h3>Trading Thesis</h3>
 Hold OTF with a 3–6 month horizon, monitoring leverage, NAV volatility, and tech exposure.
 </section>
</section>



KBRA assigns a rating of BBB to Blue Owl Technology Finance Corp.&#39;s (NYSE:<a class="ticker" href="https://www.benzinga.com/quote/OTF">OTF</a>, the company&#34, )) $400 million 6.500% senior unsecured notes due October 15, 2029. The rating Outlook is Stable.


Key Credit Considerations


The rating is supported by the company&#39;s ties to the significant $158.1 billion Blue Owl Credit platform as well as the derived benefits from OTF&#39;s SEC exemptive relief to co-invest with other funds managed by the adviser and its affiliates, including the $26 billion deployed across the technology strategy. Furthermore, the experienced management team which has decades of experience working in the private markets has built a high credit quality direct lending platform to finance mainly sponsor-backed portfolio companies in the upper middle market. The company has a team of 40+ tech dedicated investment professionals in Menlo Park, CA, and New York, NY, which supports origination and risk management.


Following the completion of the 2025 merger with its affiliated technology business development company, OTF has $14.7 billion of total investments at fair value as of June 30, 2026. The investment portfolio is well diversified consisting of 205 technology focused portfolio companies with 78% of the investment portfolio at FV comprised of senior secured first lien loans. The top three sector exposures by end market are Systems Software (17.5%), Application Software (15.3%), and Health Care Technology (12.4%). The company has invested in 39 sectors that are diversified by subsectors and end-markets. Furthermore, the top 10 positions represent only 16% of the portfolio at FV. The portfolio companies are backed by high quality private equity sponsors with significant dry powder, which can support portfolio companies in adverse markets. The portfolio companies had a weighted average EBITDA of $291 million with a weighted average revenue of $1.0 billion and enterprise value of $5.7 billion as of 2Q26. Credit quality remains solid with two portfolio companies on non-accrual status, accounting for only 0.6% and 0.1% of total investments at cost and FV, respectively. Furthermore, 92.4% of the portfolio is internally rated at the highest ratings of 1 or 2, which indicate that the loan is performing at or above at underwriting expectations. Approximately 98% of PIK is at origination.


Further supporting the rating is the company&#39;s diversified funding sources, including bank revolving credit facilities, SPV asset facilities, CLOs, and unsecured notes. The company has solid access to the capital markets, raising unsecured debt multiple times over the past few years. Unsecured debt to total debt outstanding was 36.2% at June 30, 2026, providing adequate asset encumbrance for unsecured noteholders and financial flexibility. Gross and net leverage were relatively low at 0.96x and 0.93, respectively, and remain within OTF&#39;s target net leverage range of 0.90x to 1.25x, allowing for a solid cushion in the event of market volatility. KBRA expects leverage to remain moderate given its technology focus and high but declining exposure to preferred and common equity investments (11.6%). The proceeds of note issuance will be used to repay secured debt, allowing for net neutral leverage. As of June 30, 2026, the company had adequate liquidity, with ~$1.8 billion in available bank lines and $210 million of unrestricted cash set against $950 million of notes maturing within the next two years. The company also had ~$1.9 billion of unfunded commitments, of which, a substantial portion is tied to covenants and transactions and are not expected to be drawn.


Counterbalancing these strengths are the company&#39;s requirement to distribute 90% of earnings, negating the ability to retain earnings, illiquid assets, and increased Net Asset Value (NAV) volatility with a relatively sizeable portfolio of equity and preferred stock investments relative to peers. While these investments have declined meaningfully, the company has elevated exposure to software and other technology-related sectors that heighten sensitivity to shifts in market sentiment, particularly amid uncertainty around AI-driven disruption and evolving competitive dynamics. Furthermore, there is potential for increased non-accrual investments with a more uncertain economic environment with high base rates, inflation, and geopolitical risks.


Formed in July 2018 as a Maryland corporation, Blue Owl Technology Finance Corp. is a publicly traded externally managed, closed-end management investment company that has elected to be regulated as a BDC under the Investment Company Act of 1940 and has elected to be treated as a regulated investment company for tax purposes. OTF is externally managed by Blue Owl Technology Credit Advisors LLC (&#34;the Adviser&#34;). The Adviser is an indirect subsidiary of Blue Owl Capital (NYSE:<a class="ticker" href="https://www.benzinga.com/quote/OWL">OWL</a>), a global alternative asset manager with $319+ billion of AUM.


Rating Sensitivities


A rating upgrade is not expected over the medium term. A rating downgrade and/or Outlook change to Negative could be considered if there is a significant downturn in the U.S. economy with negative impact on OTF&#39;s earnings performance, asset quality, and leverage. A significant change in senior management and/or risk management policies could also lead to negative rating action.


To access ratings and relevant documents, click <a xmlns="http://www.w3.org/1999/xhtml" rel="nofollow" href="https://cts.businesswire.com/ct/CT?id=smartlink&amp;url=https%3A%2F%2Fwww.kbra.com%2Fissuers%2F54265%2Fsecurity-ratings&amp;esheet=54590914&amp;newsitemid=20260817197990&amp;lan=en-US&amp;anchor=here&amp;index=1&amp;md5=91431a2cb5e53a23cb98ba80ed2886cf" shape="rect">here</a>.


Methodology

<ul xmlns="http://www.w3.org/1999/xhtml" class="bwlistsquare">
<li xmlns="http://www.w3.org/1999/xhtml">
<a xmlns="http://www.w3.org/1999/xhtml" rel="nofollow" href="https://cts.businesswire.com/ct/CT?id=smartlink&amp;url=https%3A%2F%2Fwww.kbra.com%2Fpublications%2FJgmgGVBR&amp;esheet=54590914&amp;newsitemid=20260817197990&amp;lan=en-US&amp;anchor=Financial+Institutions%3A+Finance+Company+Global+Rating+Methodology&amp;index=2&amp;md5=fe40ff7c51c6165fa1b702579e59961c" shape="rect">Financial Institutions: Finance Company Global Rating Methodology</a>

</li>
</ul>
Disclosures


A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located <a xmlns="http://www.w3.org/1999/xhtml" rel="nofollow" href="https://cts.businesswire.com/ct/CT?id=smartlink&amp;url=https%3A%2F%2Fwww.kbra.com%2Fissuers%2F54265%2Fdisclosures&amp;esheet=54590914&amp;newsitemid=20260817197990&amp;lan=en-US&amp;anchor=here&amp;index=3&amp;md5=6548af0b97730eb0625cf5dada38dfe1" shape="rect">here</a>.


Information on the meaning of each rating category can be located <a xmlns="http://www.w3.org/1999/xhtml" rel="nofollow" href="https://cts.businesswire.com/ct/CT?id=smartlink&amp;url=https%3A%2F%2Fwww.kbra.com%2Funderstanding-ratings%2Frating-scales%2Flong-term-credit-rating&amp;esheet=54590914&amp;newsitemid=20260817197990&amp;lan=en-US&amp;anchor=here&amp;index=4&amp;md5=bd2c8af991ae4b92528d3b0d61628eb1" shape="rect">here</a>.


Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at <a xmlns="http://www.w3.org/1999/xhtml" rel="nofollow" href="https://cts.businesswire.com/ct/CT?id=smartlink&amp;url=https%3A%2F%2Fwww.kbra.com&amp;esheet=54590914&amp;newsitemid=20260817197990&amp;lan=en-US&amp;anchor=www.kbra.com&amp;index=5&amp;md5=281f2bbec2a5b8040eeb8418f3de4665" shape="rect">www.kbra.com</a>.


About KBRA


Kroll Bond Rating Agency, LLC (KBRA), one of the major credit rating agencies (CRA), is a full-service CRA registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a Designated Rating Organization (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan’s Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S.


Doc ID: 1016552

<img xmlns="http://www.w3.org/1999/xhtml" alt="" src="https://cts.businesswire.com/ct/CT?id=bwnews&amp;sty=20260817197990r1&amp;sid=benz2&amp;distro=nx&amp;lang=en" style="width:0;height:0"></img>View source version on businesswire.com: <a xmlns="http://www.w3.org/1999/xhtml" href="https://www.businesswire.com/news/home/20260817197990/en/" rel="nofollow">https://www.businesswire.com/news/home/20260817197990/en/</a>
Analytical Contacts


Teri Seelig, Managing Director (Lead Analyst)
 +1 646-731-2386
 <a xmlns="http://www.w3.org/1999/xhtml" rel="nofollow" href="mailto:teri.seelig@kbra.com" shape="rect">teri.seelig@kbra.com</a>


Josh Mandelbaum, Director
 +1 301-969-3186
 <a xmlns="http://www.w3.org/1999/xhtml" rel="nofollow" href="mailto:josh.mandelbaum@kbra.com" shape="rect">josh.mandelbaum@kbra.com</a>


Business Development Contact


Constantine Schidlovsky, Senior Director
 +1 646-731-1338
 <a xmlns="http://www.w3.org/1999/xhtml" rel="nofollow" href="mailto:constantine.schidlovsky@kbra.com" shape="rect">constantine.schidlovsky@kbra.com</a>

KBRA assigns BBB to Blue Owl Technology Finance's $400M 6.5% notes due 2029, with a Stable Outlook. Post-merger, OTF holds $14.7B of FV investments across 205 tech-focused companies, backed by strong sponsor relationships. NAV volatility and a 90% earnings-distribution rule remain key risks amid AI and tech-cycle uncertainty.

News insight

KBRA Assigns Rating to Blue Owl Technology Finance Corp.'s $400 Million Senior Unsecured Notes due 2029

AI summary

Sentiment rationale

Key facts

Corporate Developments