Summary
This 8-K filing by The Blackstone Group L.P. (BX) on August 20, 2009, reports on the issuance of $600 million in aggregate principal amount of 6.625% Senior Notes due 2019. These notes are unsecured and unsubordinated obligations of the Issuer, Blackstone Holdings Finance Co. L.L.C., and are fully and unconditionally guaranteed by several indirect subsidiaries of The Blackstone Group L.P. The offering was made through an indenture, which includes covenants restricting the ability of the Issuer and Guarantors to incur certain secured indebtedness or engage in significant asset sales or mergers. For investors, the key takeaway is Blackstone's successful access to capital markets during a period of financial market stress. The issuance of these senior notes at a 6.625% interest rate indicates investor confidence in Blackstone's creditworthiness. The covenants provide some protection to noteholders by limiting the company's ability to take on excessive secured debt or significantly alter its asset base without provisions for noteholder repayment. The notes mature in 10 years, providing a long-term funding source for the company.
Key Highlights
- 1Blackstone Group L.P. issued $600 million in aggregate principal amount of 6.625% Senior Notes due 2019.
- 2The notes are unsecured and unsubordinated obligations of the Issuer, Blackstone Holdings Finance Co. L.L.C.
- 3The notes are fully and unconditionally guaranteed by several indirect subsidiaries of The Blackstone Group L.P.
- 4The issuance was facilitated by an indenture with The Bank of New York Mellon as trustee.
- 5The indenture includes covenants that limit the incurrence of secured indebtedness and restrict mergers, consolidations, or asset sales.
- 6The notes are subject to redemption at the Issuer's option under 'make-whole' provisions.
- 7A change of control repurchase event requires the Issuer to repurchase the notes at 101% of their principal amount plus accrued interest.