OBDC II: Blue Owl Has Returned $3.54 a Share Since It Ended Redemptions. NAV Is $4.87

What OBDC II is, in one paragraph

OBDC II is one of Blue Owl's older private credit funds for individual investors: a business development company that lends to US middle-market companies (71.0% first-lien loans at June 30, 2026, by fair value) and that has raised money from individual investors since 2017. It is the smaller sibling of Blue Owl Capital Corporation, which trades on the NYSE as OBDC. OBDC II's shares do not trade anywhere. Until 2025 the way out was a quarterly tender offer; since February 2026 it is whatever the board decides to hand back each quarter. At June 30, 2026 the fund reported $691.0 million of investments in 154 companies, $150.5 million of debt and $563.1 million of net assets (10-Q).

How the exit worked until 2025

OBDC II offered to buy back a fixed dollar amount each quarter at its current reinvestment price. Its two 2025 offers whose results are on EDGAR:

Requests ran ahead of the offer both times, by about 446,000 and 1.15 million shares, and the fund used the tender rules' extra 2% to buy everything. There was no fourth-quarter offer. On November 5, 2025 OBDC II signed a merger into the listed OBDC, with the exchange ratio based on NAV per share or, if OBDC traded above its NAV, on its price. Thirteen days later both boards terminated it. The joint press release said "every quarterly tender has been fully satisfied" and: "Subject to Board approval, OBDC II plans to reinstate the tender program in Q1 of 2026."

February 2026: loan sale, smaller credit line, no more tenders

The first-quarter tender did not come back. On February 18, 2026 OBDC II filed an 8-K with three things in it:

• A loan sale. Six buyers, each "a financing vehicle or fund owned by a leading public pension or insurance investor", bought portfolios totaling $600.0 million of commitments, 33.8% of the fund's total commitments, in 96 companies. Fair value at February 12 was $538.3 million, 99.8% of par. Blue Owl Capital Corporation and Blue Owl Technology Income Corp. sold to the same buyers; the three funds' sales were $1.4 billion together. Affiliates of the adviser will provide the buyers "non-discretionary advisory services".
• A smaller credit line. The revolving facility went from $225.0 million to $75.0 million, its availability was cut from January 2028 to October 2027 and the interest margins went up by 0.50 points.
• A different exit. The fund ended its dividend reinvestment plan, said all future distributions would be cash, and said it would "prioritize additional return of capital distributions to its shareholders on a quarterly basis, which are intended to replace quarterly tender offers and may be funded by repayments, proceeds from the sale of assets or strategic transactions."

The difference for a holder: a tender let each holder choose whether and how much to sell. A return of capital pays every holder the same amount per share, whether they wanted cash or not, and the amount and timing are up to the board.

What has been paid back

The fund's July 20 letter says it "remains on track to achieve its previously communicated goal of paying return of capital distributions equal to 50% of NAV or more by year-end 2026." Fifty percent of $8.27 is about $4.14 a share, so about $0.60 more would meet the goal (our arithmetic). The two payments after March were declared on April 14 and July 16, so a fourth-quarter declaration around mid-October would follow the same pattern; nothing had been filed when we checked on October 4.

The regular monthly dividend kept going, smaller each time: $0.06 a share in the first half of 2025, $0.0533 from January to March 2026, $0.035 in April and $0.03 from May (10-Q and the July letter).

NAV: $8.27 to $4.87, and what it means

NAV per share fell because cash went out, not mainly because loans lost value. The steps (10-K, monthly reinvestment-price 8-Ks, the July letter and the June 10-Q):

A holder who owned one share at the end of 2025 has received $3.54 of return of capital and about $0.28 of monthly dividends through July (our arithmetic from the distribution table), $3.82 in cash, and still owns a share worth about $4.25 at NAV. Together that is about $8.07 against $8.27, down about 2.4%, before third-quarter results. The 10-Q reports a total return of minus 2.8% for the first six months of 2026.

The income problem

The fund that is left is smaller and earns much less:

Interest expense barely moved while income halved. The fund repaid most of its debt during the quarter, including the full $350 million of 8.450% notes due November 2026, redeemed early on May 21, and the 10-Q puts the quarter's average interest rate at 13.4%, including fees on undrawn lines and $3.4 million of accelerated amortization of debt issuance costs. That is partly a one-time cost of paying debt off early. With $150.5 million of debt left at June 30 and net leverage of 0.21x, interest should be far lower from the third quarter.

Even so, the regular dividend was not covered: $1.7 million of net investment income against $11.0 million of monthly dividends for April, May and June ($0.035, $0.03 and $0.03 a share), about 16% (our arithmetic). The 10-Q also reports $8.1 million of realized losses and $15.2 million of unrealized losses in the quarter. Total net expenses were 12.4% of average net assets for the six months.

Cox Capital and Saba's $3.80 offer

On March 6, 2026 Cox Capital Partners and Saba Capital filed a tender offer for up to 8,000,000 shares at $3.80, less than 7% of the fund. They described the price as 34.93% below $5.84, which is the $8.19 reinvestment price less the $2.35 a share that the fund's February 18 press release had given as the most it expected to return ("up to $2.35 per share"). The fund then paid $2.50; on that basis the board's 14D-9 put the discount at 33.2% to an implied NAV of $5.69 and unanimously recommended that shareholders reject the offer. It closed on April 24. The final amendment says Cox accepted all shares tendered and that "The Offer was not oversubscribed." It does not say how many shares that was. Our census of Cox Capital's tender offers has the rest of its bids, including the ones for BCRED and ASIF.

With hindsight the arithmetic is plain. A holder who sold at $3.80 in April still received the $2.50 and the $0.42, whose record dates had passed. One who kept the share then received $0.62 in July and about $0.09 of monthly dividends, and still holds about $4.25 of NAV: about $4.96 against $3.80 (our arithmetic). The $4.25 is NAV, not cash; its value depends on what the remaining loans repay.

What a holder can do with this

• If you hold OBDC II: you cannot ask the fund to buy your shares. Cash comes from the return-of-capital distributions, paid on every share when declared, and the monthly dividend. The next filed number to watch is the third-quarter 10-Q, due around early November, with the September 30 NAV and a quarter of income on the smaller balance sheet.
• If you get a secondary bid: compare the price with NAV after the most recent return of capital, and with what the fund still says it will pay back this year (about $0.60 more to reach 50% of the 2025 NAV, our arithmetic). Check whether the next record date falls before or after the sale.
• If you are weighing other Blue Owl or private credit funds: a fund can change its exit. OBDC II went from filling every tender in full to no tenders in five months, through a merger that was signed and called off in between. BCRED and ASIF still run quarterly tenders but have pro-rated them.
• What would change the picture: a new merger or strategic transaction (the November release said the boards would "reevaluate alternatives in the future"), another asset sale, or a return of capital larger than the stated pace.

FAQ

All figures are from OBDC II's SEC filings read on EDGAR on October 4, 2026: the Schedule TO-I/A results of June 27 and September 25, 2025; the Form 8-Ks of November 5 and 19, 2025, February 18 and 26, March 6, April 16, June 26 and July 20, 2026 (with exhibits); ten monthly reinvestment-price 8-Ks from May 2025 to February 2026; the Form N-23C-2 of May 11, 2026; Cox Capital and Saba's Schedule TO-T and Amendment No. 5; the board's Schedule 14D-9 of March 13, 2026; the 2025 Form 10-K and the June 30, 2026 Form 10-Q. Totals per holder and coverage ratios are our arithmetic. This is analysis of public documents, not investment, legal or tax advice.