Summary
This 8-K filing by Blackstone Inc. (BX) on April 11, 2019, announces the completion of a significant debt offering. Specifically, Blackstone Holdings Finance Co. L.L.C., an indirect subsidiary, successfully issued €600,000,000 aggregate principal amount of 1.500% Senior Notes due 2029. These notes are unsecured and unsubordinated, with interest payable annually and maturity in 2029. The offering was made under the existing indenture, supplemented by a Twelfth Supplemental Indenture, and includes full and unconditional guarantees from several indirect subsidiaries of Blackstone Inc. This issuance represents a move by Blackstone to secure long-term financing at a favorable interest rate. The terms of the indenture impose certain covenants limiting the ability of the issuer and guarantors to incur secured indebtedness, merge, or sell assets, providing a layer of security for noteholders. The filing also details provisions for events of default, redemption options (including a make-whole provision before maturity and a par redemption option closer to maturity), and a change of control repurchase event, offering insights into the financial strategy and risk management of the company.
Key Highlights
- 1Blackstone completed the issuance of €600,000,000 of 1.500% Senior Notes due 2029.
- 2The notes are unsecured and unsubordinated obligations of the issuer, Blackstone Holdings Finance Co. L.L.C.
- 3The issuance is supported by full and unconditional guarantees from several indirect subsidiaries of Blackstone Inc.
- 4The notes bear a fixed annual interest rate of 1.500%, payable annually.
- 5The Indenture includes covenants restricting secured debt, mergers, and asset sales, aimed at protecting noteholders.
- 6The notes are subject to redemption by the issuer, including at a 'make-whole' price prior to maturity, and at par thereafter.
- 7A change of control repurchase event triggers an offer to repurchase the notes at 101% of the principal amount.