8-KLeadership ChangesShareholder MattersCorporate Changes+1

Blackstone Inc. 8-K Report, Rights Modification (Jun 27, 2007)

Filed June 27, 2007For Securities:BX

Summary

Blackstone Inc. (BX) filed an 8-K on June 27, 2007, detailing significant events related to its initial public offering (IPO). The report confirms the completion of the IPO on June 27, 2007, with the issuance of 153,333,334 common units. Additionally, it announces the sale of 101,334,234 non-voting common units to an investment vehicle established by the People's Republic of China, pursuant to a prior agreement. The filing also discloses amendments to the Partnership Agreement of The Blackstone Group L.P. and announces the appointment of two new directors to the Board of Directors of the General Partner: The Right Honorable Brian Mulroney and Lord Nathaniel Charles Jacob Rothschild. Both new directors have also been appointed to the audit committee. These events mark critical milestones for Blackstone as it transitions into a publicly traded entity.

Key Highlights

  • 1Blackstone Inc. completed its initial public offering (IPO) on June 27, 2007, issuing 153,333,334 common units.
  • 2The IPO generated cash consideration of $29.682 per common unit (net of underwriting discounts).
  • 3Blackstone sold 101,334,234 non-voting common units to an investment vehicle of the People's Republic of China.
  • 4The Amended and Restated Agreement of Limited Partnership of The Blackstone Group L.P. was entered into on June 27, 2007.
  • 5The Right Honorable Brian Mulroney and Lord Nathaniel Charles Jacob Rothschild were appointed to the Board of Directors of the General Partner, effective June 21, 2007.
  • 6Both new directors were also appointed to the audit committee of the Board of Directors.
  • 7The filing includes the Amended and Restated Agreement of Limited Partnership as an exhibit.

Frequently Asked Questions

The filing states that 153,333,334 common units were issued for cash consideration of $29.682 per unit, net of underwriting discounts. While the exact gross proceeds before discounts are not explicitly stated, the net proceeds from this issuance would be approximately $4.55 billion.

The IPO was led by a syndicate of underwriters including Morgan Stanley & Co. Incorporated and Citigroup Global Markets Inc. as the global coordinators and representatives of the underwriters, along with joint book-running managers Merrill Lynch, Pierce, Fenner & Smith Incorporated, Credit Suisse Securities (USA) LLC, Lehman Brothers Inc., and Deutsche Bank Securities Inc.

The sale of 101,334,234 non-voting common units to an investment vehicle of the People's Republic of China for its foreign exchange reserve, at a price of $29.605 per unit, represented a significant strategic investment from a major sovereign entity. This transaction was conducted pursuant to a prior Letter Agreement and included a registration rights agreement.

The new members appointed to the Board of Directors of the General Partner are The Right Honorable Brian Mulroney and Lord Nathaniel Charles Jacob Rothschild. They both joined the board effective June 21, 2007, and were also appointed to serve as members of the audit committee.