8-KMaterial AgreementsFinancial EventsOther Events+1

Blackstone Inc. 8-K Report, Material Agreement (Oct 5, 2016)

Filed October 5, 2016For Securities:BX

Summary

Blackstone Inc. (BX), filing as The Blackstone Group L.P. at the time, filed an 8-K on October 5, 2016, to report the entry into a material definitive agreement related to a significant debt offering. Specifically, the company issued €600,000,000 aggregate principal amount of 1.000% Senior Notes due 2026. 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 Partnership. The filing details the terms of the Ninth Supplemental Indenture, which amends the original indenture from 2009. Key provisions include covenants restricting the incurrence of secured debt, limitations on mergers and asset sales, and defined events of default. The notes carry a low interest rate of 1.000% and mature in 2026, with options for redemption and a change of control repurchase provision at 101% of the principal amount. The offering was made pursuant to Rule 144A and Regulation S, indicating it was not registered under the Securities Act and targeted institutional investors and non-U.S. persons.

Key Highlights

  • 1Blackstone Group L.P. completed an offering of €600,000,000 in 1.000% Senior Notes due 2026.
  • 2The issuance occurred on October 5, 2016, with interest payable annually.
  • 3The notes are unsecured and unsubordinated debt of Blackstone Holdings Finance Co. L.L.C.
  • 4The notes are fully and unconditionally guaranteed by several indirect subsidiaries of Blackstone.
  • 5The offering was conducted under Rule 144A and Regulation S, targeting qualified institutional buyers and non-U.S. persons.
  • 6The indenture includes standard covenants related to debt, mergers, asset sales, and events of default.
  • 7A change of control event triggers a repurchase option for noteholders at 101% of the principal amount.

Frequently Asked Questions

This 8-K filing serves to announce and detail the entry into a material definitive agreement, specifically the issuance of €600,000,000 of 1.000% Senior Notes due 2026 by Blackstone Holdings Finance Co. L.L.C., and the terms associated with this debt offering.

The issuer of the notes is Blackstone Holdings Finance Co. L.L.C., an indirect subsidiary of The Blackstone Group L.P. The notes are fully and unconditionally guaranteed by several other indirect subsidiaries, including The Blackstone Group L.P. itself, Blackstone Holdings I L.P., Blackstone Holdings AI L.P., Blackstone Holdings II L.P., Blackstone Holdings III L.P., and Blackstone Holdings IV L.P.

The notes bear a fixed interest rate of 1.000% per annum, payable annually on October 5th. They mature on October 5, 2026, unless redeemed early. The notes are unsecured and unsubordinated. The offering also includes provisions for redemption at the issuer's option and a mandatory repurchase at 101% of par if a change of control event occurs.

No, the notes were offered pursuant to Rule 144A (for qualified institutional buyers in the U.S.) and Regulation S (for non-U.S. persons) under the Securities Act of 1933. Therefore, they have not been registered under the Securities Act and cannot be offered or sold in the United States without registration or an applicable exemption.