Record US BDC Debt Issuance Supports Refinancing (Part 2)

Record U.S. BDC Unsecured Debt Issuance Helps Address Refinance Needs (Part 2)

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Since the beginning of September, rated BDCs have collectively issued $4 billion in unsecured debt. Blue Owl Credit Income Corp. accounts for $1.3 billion of this, including a recent AUD450 million Australia dollar-denominated offering. This was a new market for BDCs signaling an expanding investor base, which may be particularly beneficial for BDCs affiliated with large investment manager platforms that have a global brand.

BDCs are expected to remain opportunistic about addressing unsecured debt maturities in the coming months. Unsecured debt represented 52.6% of outstanding debt for rated BDCs at 2Q24 and secured debt averaged 22.5% of assets, providing solid funding flexibility for BDCs. Unsecured debt issuance YTD of $15.2 billion has already surpassed the record highs of 2021 for the rated peer group, but is modestly below the 2021 level when including BDCs that Fitch does not rate.