Saba and Cox Launch $30M Tender Offer for Blue Owl BDC Shares — Saba Capital Management, L.P.

Event summary

Saba Capital and Cox Capital launched a tender offer for up to 8M shares (6.9% of outstanding) of Blue Owl's OBDC II at $3.80 per share, totaling ~$30.4M.
The offer represents a 34.9% discount to OBDC II’s dividend reinvestment plan issuance value as of February 26, 2026.
OBDC II has faced liquidity pressures, including a terminated merger that would have forced investors to take ~20% losses and restricted redemptions.
The tender offer runs from March 6, 2026, to April 24, 2026, with shares accepted on a pro-rata basis if demand exceeds supply.

The big picture

This tender offer reflects broader liquidity strains in non-traded BDCs, where limited secondary market options force investors to accept steep discounts. Saba and Cox are positioning themselves as providers of liquidity solutions in an illiquid asset class, while OBDC II’s struggles highlight the risks of misaligned incentives between fund managers and shareholders in private credit structures.

What we're watching

Liquidity Dynamics: How the tender offer will impact OBDC II’s remaining shareholders and its ability to manage redemption pressure.
Market Reaction: Whether other non-traded BDCs face similar liquidity challenges, prompting additional secondary market solutions.
Regulatory Scrutiny: The pace at which regulators review the tender offer’s terms and potential implications for investor protections in private credit markets.