8-KOther EventsExhibits & Filings

Blackstone Inc. 8-K Report, Corporate Update (Sep 4, 2019)

Filed September 4, 2019For Securities:BX

Summary

Blackstone Inc. announced on September 3, 2019, the pricing of a significant debt offering, raising a total of $900 million through two tranches of senior notes: $500 million of 2.500% Senior Notes due 2030 and $400 million of 3.500% Senior Notes due 2049. These notes are fully and unconditionally guaranteed by various Blackstone entities, indicating strong support and commitment from the parent company and its subsidiaries. The primary use of the proceeds from this offering is to refinance and repurchase outstanding 5.875% Senior Notes due 2021. This strategic move suggests Blackstone is aiming to lower its overall borrowing costs by issuing new debt at lower interest rates and potentially extending its debt maturity profile. Any remaining proceeds will be allocated to general corporate purposes, providing the company with additional financial flexibility.

Key Highlights

  • 1Blackstone priced an offering of $500 million in 2.500% Senior Notes due 2030.
  • 2Blackstone priced an offering of $400 million in 3.500% Senior Notes due 2049.
  • 3Total aggregate principal amount of new notes offered is $900 million.
  • 4The notes are fully and unconditionally guaranteed by The Blackstone Group Inc. and several of its L.P. subsidiaries.
  • 5Proceeds will be used to repurchase and/or redeem outstanding 5.875% Senior Notes due 2021.
  • 6This debt issuance aims to reduce interest expenses and potentially optimize the company's capital structure.
  • 7The notes were offered under Rule 144A and Regulation S, indicating they were offered to qualified institutional buyers and non-U.S. persons.

Frequently Asked Questions

The primary purpose of this debt issuance is to refinance and repurchase Blackstone's outstanding 5.875% Senior Notes due 2021. By issuing new notes at lower interest rates, Blackstone aims to reduce its overall interest expenses and potentially extend its debt maturity profile.

Blackstone raised a total of $900 million through the issuance of two tranches of senior notes: $500 million of 2.500% Senior Notes due 2030 and $400 million of 3.500% Senior Notes due 2049.

Yes, the new notes are fully and unconditionally guaranteed by The Blackstone Group Inc. and several of its key L.P. subsidiaries, including 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.

Any proceeds remaining after repurchasing or redeeming the 2021 Notes, along with paying related fees and expenses, will be used for general corporate purposes. This provides Blackstone with additional financial flexibility.