Saba, Cox Launch $30.4M Tender Offer for Blue Owl BDC II at 35% NAV Discount
Saba Capital Management and Cox Capital launched a $30.4M tender offer for 8 million shares (6.9% of equity) of Blue Owl BDC II at a 34.9% NAV discount as the fund winds down. Board reviewing bid; investors to receive over 50% of net assets in 2026 distributions.
1. Tender Offer Details
Saba Capital Management and Cox Capital Partners initiated a tender offer to acquire up to $30.4 million of Blue Owl BDC II shares, representing 8 million shares or 6.9% of outstanding equity, at a 34.9% discount to NAV after accounting for the upcoming dividend.
2. Winding Down and Distribution Plan
Blue Owl BDC II replaced its ordinary redemption mechanism in February with an accelerated capital distribution schedule as it winds down, targeting payouts that exceed 50% of net assets through distributions during 2026.
3. Board Review and Investor Implications
The fund’s board is evaluating the tender, which aims to provide liquidity to investors facing elevated redemption requests and follows the November cancellation of a planned stock-for-stock merger due to NAV concerns.
4. Financing Structure and Market Context
Saba funds are providing 90–99% of the financing and expect proportional beneficial ownership of acquired shares, joining similar offers for other Blue Owl BDCs amid a sector-wide surge in redemption gates and outflows.