T. Rowe Price credit fund closes $300m placement

T. Rowe Price’s OHA Select Private Credit Fund (OCREDIT) has announced the closing of a $300m (£234.85m) private placement of five-year senior unsecured notes.

The announcement was made along with the fund’s financial results for the fourth quarter and full year. Last year, OCREDIT returned a weighted average yield on debt and income producing investments of 12.7 per cent. Net investment income per share was $1.03 by the end of December 2023.

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“We are pleased with OCREDIT’s performance and ramp to-date, having grown from $50m in initial equity commitments to a billion-dollar-plus portfolio of high-quality investments,” said Eric Muller, OCREDIT’s chief executive.

“The company’s inaugural notes offering pursuant to a private placement marks a milestone in its capital management, and we look forward to continue to scale OCREDIT alongside the growing opportunity in senior private lending for the benefit of our shareholders.”

OCREDIT confirmed that on 7 March 2024 it entered into a master note purchase agreement regarding the issuance of $300m in aggregate principal amount of senior notes, with a fixed interest rate of 7.77 per cent per year. The notes are due to mature on 4 March 2029.

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As of 31 December 2023, the company’s investment portfolio had a fair value of $1.148bn, comprised of investments in 90 portfolio companies operating across 22 different industries.

The investment portfolio was made up of 90.8 per cent first lien senior secured loans and 9.2 per cent second lien senior secured loans.

Read more: Private debt AUM passed $1.6trn last year amid “explosive” growth