8-KMaterial AgreementsFinancial EventsExhibits & Filings

Blackstone Inc. 8-K Report, Material Agreement (May 19, 2015)

Filed May 19, 2015For Securities:BX

Summary

This Form 8-K filing by The Blackstone Group L.P. (now Blackstone Inc.) on May 19, 2015, details the issuance of €300,000,000 in 2.000% Senior Notes due 2025. This transaction represents a material definitive agreement and the creation of a direct financial obligation for the company. The notes are unsecured and unsubordinated, with interest paid annually and maturity in 2025. The issuance is backed by full and unconditional guarantees from several indirect subsidiaries, bolstering investor confidence in the repayment of these senior notes. The filing also outlines key terms of the indenture, including covenants that restrict the company and its subsidiaries from incurring certain secured debt or engaging in significant asset sales or mergers without satisfying specific conditions. It details provisions for events of default, including remedies for acceleration of the debt, and outlines conditions for redemption, including a make-whole provision and a mandatory repurchase at 101% of principal in the event of a change of control. The notes are structured to provide a measure of protection against adverse tax withholding by including provisions for additional payments.

Key Highlights

  • 1Blackstone issued €300 million of 2.000% Senior Notes due May 19, 2025.
  • 2The notes are unsecured and unsubordinated obligations of Blackstone Holdings Finance Co. L.L.C.
  • 3The issuance is fully and unconditionally guaranteed by several indirect subsidiaries of The Blackstone Group L.P.
  • 4Interest on the notes is payable annually on May 19, commencing in 2016.
  • 5The indenture includes covenants limiting the incurrence of secured indebtedness and restrictions on mergers or asset sales.
  • 6Notes are subject to redemption at Blackstone's option at a 'make-whole' price or repurchase at 101% of principal in case of a change of control.
  • 7Provisions are in place for additional payments if withholding taxes are required.

Frequently Asked Questions

This 8-K filing announces that The Blackstone Group L.P. has entered into a material definitive agreement to issue €300,000,000 in 2.000% Senior Notes due 2025. It also formally establishes this as a direct financial obligation of the company.

The notes have a principal amount of €300,000,000, bear a fixed interest rate of 2.000% per annum, and mature on May 19, 2025. Interest is paid annually, with the first payment due on May 19, 2016. They are unsecured and unsubordinated, and the issuer may redeem them prior to maturity at a make-whole price, or repurchase them at 101% of principal upon a change of control.

Yes, the notes are fully and unconditionally guaranteed, jointly and severally, by several indirect subsidiaries of The Blackstone Group L.P. These guarantees are also unsecured and unsubordinated, providing additional security for the noteholders.

The indenture includes covenants that limit the ability of the issuer and guarantors to incur secured debt or undergo significant corporate changes like mergers or asset sales without meeting certain conditions. It also outlines events of default, which can lead to the acceleration of the debt, and provides for mandatory repurchase upon a change of control.