Summary
Blackstone Inc. (BX) filed an 8-K on September 25, 2018, to report on the amendment and restatement of its revolving credit facility. This $1.60 billion facility, entered into on September 21, 2018, extends the maturity date to September 21, 2023, and introduces several favorable terms for the company. Key updates include an improved pricing grid based on corporate ratings, increased sub-limits for swingline loans, the addition of Canadian Dollar borrowing capabilities, and enhanced flexibility regarding debt incurrence and restricted payments. Investors should note the increase in the minimum required fee-generating assets under management to $150.0 billion, a key metric for Blackstone's operations. The facility remains unsecured and includes customary covenants, such as a maximum net leverage ratio, with financial covenants tested quarterly. The inclusion of 'realized incentive fees' in the definition of 'Combined EBITDA' is also a notable change, potentially impacting financial metrics.
Key Highlights
- 1Amended and restated $1.60 billion revolving credit facility entered into on September 21, 2018.
- 2Extended maturity date from August 31, 2021, to September 21, 2023.
- 3Updated pricing grid based on corporate ratings to potentially lower interest costs and fees.
- 4Increased swingline loan sub-limit from $100 million to $150 million.
- 5Added flexibility to borrow in Canadian Dollars.
- 6Removed certain restrictions on incurring debt and making restricted payments.
- 7Increased required minimum fee generating assets under management from $100 billion to $150 billion.
- 8Included 'realized incentive fees' in the definition of 'Combined EBITDA'.