8-KMaterial AgreementsFinancial EventsExhibits & Filings

Blackstone Inc. 8-K Report, Material Agreement (Jun 4, 2014)

Filed June 4, 2014For Securities:BX

Summary

Blackstone Inc. (BX) filed an 8-K on June 4, 2014, detailing an amendment and restatement of its $1.10 billion revolving credit facility. The key change is the extension of the facility's maturity date from July 13, 2017, to May 29, 2019, providing greater financial flexibility and stability for the company. The amended agreement also includes more favorable pricing terms based on corporate ratings, an increased sub-limit for letters of credit, and expanded foreign currency borrowing capabilities. Furthermore, the facility's accordion feature, allowing for increased borrowings, has been enhanced from $1.25 billion to $1.60 billion, signaling potential for future growth or opportunistic investments. An increased minimum requirement for fee-generating assets under management was also implemented. These updates underscore Blackstone's proactive approach to managing its capital structure and ensuring continued operational capacity.

Key Highlights

  • 1Amended and restated $1.10 billion revolving credit facility.
  • 2Extended maturity date from July 13, 2017, to May 29, 2019.
  • 3Updated corporate ratings-based pricing grid for more favorable interest rates and commitment fees.
  • 4Increased letter of credit sub-limit from $100 million to $250 million.
  • 5Added flexibility to borrow in U.K. Sterling, Euros, Swiss Francs, or Japanese Yen, up to 50% of commitments.
  • 6Increased the accordion feature (potential for additional borrowings) from $1.25 billion to $1.60 billion.
  • 7Raised the minimum requirement for fee-generating assets under management from $65 billion to $100 billion.

Frequently Asked Questions

This filing reports on Blackstone's entry into an amended and restated $1.10 billion revolving credit facility. The primary goal was to extend the maturity of this facility and update its terms to provide greater financial flexibility and potentially more favorable borrowing costs.

The new facility extends the maturity date by nearly two years, provides enhanced borrowing capacity through an increased accordion feature, allows for foreign currency borrowings, and updates pricing to potentially lower interest expenses. The increased letter of credit sub-limit also offers greater operational flexibility.

Yes, the amended agreement includes a requirement to maintain a minimum of $100 billion in fee-generating assets under management, an increase from the previous $65 billion. It also maintains financial covenants such as a maximum net leverage ratio.

No, the report states that the New Credit Facility is unsecured.