8-KMaterial AgreementsFinancial EventsExhibits & Filings

Blackstone Inc. 8-K Report, Material Agreement (Aug 17, 2012)

Filed August 17, 2012For Securities:BX

Summary

This 8-K filing from The Blackstone Group L.P. (now Blackstone Inc.) on August 17, 2012, reports on the entry into material definitive agreements concerning the issuance of new senior notes. Specifically, the company issued $400 million of 4.75% Senior Notes due 2023 and $250 million of 6.25% Senior Notes due 2042. These issuances are part of Blackstone's ongoing financing activities to manage its capital structure and fund its various investment strategies. The filing details the terms of these new notes, including interest rates, maturity dates, and covenants. The notes are unsecured and unsubordinated obligations of the Issuer, guaranteed by the Partnership and its indirect subsidiaries. The Indentures contain standard covenants related to indebtedness, mergers, and asset sales, as well as provisions for events of default and a change of control repurchase event, which are important considerations for investors regarding the company's financial flexibility and risk management.

Key Highlights

  • 1Blackstone issued $400 million in 4.75% Senior Notes due 2023.
  • 2Blackstone issued $250 million in 6.25% Senior Notes due 2042.
  • 3The new notes are unsecured and unsubordinated obligations.
  • 4The notes are fully and unconditionally guaranteed by certain indirect subsidiaries of Blackstone.
  • 5The Indentures include covenants restricting indebtedness and asset dispositions.
  • 6Provisions for events of default and a change of control repurchase event are included.
  • 7The filing signals ongoing debt financing activities by Blackstone.

Frequently Asked Questions

This 8-K filing announces the entry into material definitive agreements related to the issuance of new senior notes by The Blackstone Group L.P. (now Blackstone Inc.). It details the principal amounts, interest rates, and maturity dates of these new debt securities.

Blackstone issued $400 million of 4.75% Senior Notes due 2023 and $250 million of 6.25% Senior Notes due 2042. The notes accrue interest from August 17, 2012, and are payable semiannually. They mature in 2023 and 2042, respectively, unless redeemed or repurchased earlier.

The new notes are unsecured and unsubordinated obligations of the Issuer. However, they are fully and unconditionally guaranteed, jointly and severally, by certain indirect subsidiaries of The Blackstone Group L.P., referred to as the Guarantors.

The Indentures include covenants that limit the Issuer's and Guarantors' ability to incur indebtedness secured by liens on voting stock or profit-participating equity interests of their subsidiaries, or to merge, consolidate, or sell/lease assets. These covenants are designed to protect noteholders.