Blue Owl slashes Loparex loan value to near zero

Analyst
โดย Seeking Alpha·US·Read original
Summary · why it matters

Blue Owl Capital has reportedly cut the value of its loans to specialty materials maker Loparex to near zero, raising fresh concerns about valuation practices in the $1.8 trillion private credit sector. The write-down, reported by Bloomberg News, involves Blue Owl's publicly traded business development company, OBDC, which moved its exposure to Loparex to non-accrual status after the second quarter. Moody's this week downgraded Loparex's Probability of Default Rating over missed term loan interest payments, with a negative outlook reflecting concerns that a Chapter 11 bankruptcy could follow. The rapid deterioration shows that a loan recently valued close to par can lose value quickly once a borrower enters financial distress.

Impact on stocks 3

Financials▼ · 2 stocks
Blue Owl Capital Corporation
OBDC
▼ NegativeCapitalrelevance

OBDC moved its Loparex loan exposure to non-accrual and slashed the loan value to near zero, a direct hit to its portfolio valuation.

Blue Owl Capital Inc
OWL
▼ NegativeCapitalrelevance

Blue Owl Capital's private credit valuation practices face fresh concerns after the Loparex write-down at its BDC.

Cloud & Digital Infrastructure▼ · 1 stocks
Moodys Corporation
MCO
▼ NegativeCapitalrelevance

Moody's downgraded Loparex's Probability of Default Rating over missed interest payments, a credit-rating action tied to the loan write-down.

Off-coverage companies 1

Loparex GroupPrivate▼ Negative
Capitalrelevance

Loparex's loan was written down to near zero and Moody's flagged possible Chapter 11 after missed term loan interest payments.

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