Summary
Blackstone Inc. (BX) filed an 8-K on September 10, 2019, detailing the issuance of new senior notes and the results of a tender offer for existing notes. The company successfully issued $500 million in 2.500% Senior Notes due 2030 and $400 million in 3.500% Senior Notes due 2049. These new notes are unsecured and unsubordinated obligations of the issuer, fully guaranteed by Blackstone's indirect subsidiaries. The financing activities aim to manage Blackstone's debt structure and extend its maturity profile.
Key Highlights
- 1Blackstone issued $900 million in new senior notes: $500 million of 2.500% Senior Notes due 2030 and $400 million of 3.500% Senior Notes due 2049.
- 2The new notes are unsecured and unsubordinated, with full guarantees from Blackstone's indirect subsidiaries.
- 3The issuance involved supplemental indentures, including the Thirteenth Supplemental Indenture for the 2030 Notes and the Fourteenth Supplemental Indenture for the 2049 Notes.
- 4The notes are subject to standard covenants, including limitations on liens, mergers, and asset sales, with provisions for default and acceleration.
- 5Blackstone conducted a cash tender offer for its 5.875% Senior Notes due 2021, receiving tenders for approximately $174.6 million principal amount.
- 6The new notes were offered pursuant to Rule 144A and Regulation S, indicating they were primarily offered to institutional investors and non-US persons.
- 7The filing incorporates by reference several exhibits, including the base indenture, supplemental indentures, forms of the notes, and press releases announcing the offering and tender offer results.
Frequently Asked Questions
Blackstone issued new senior notes to refinance existing debt, manage its maturity profile, and potentially lower its overall borrowing costs. The issuance of long-dated notes ($500 million due 2030 and $400 million due 2049) extends the company's debt maturities.
The tender offer indicates Blackstone's proactive debt management strategy. By repurchasing a portion of its 2021 notes, the company is likely seeking to reduce its near-term debt obligations and potentially replace them with longer-term, potentially lower-cost debt, as evidenced by the new note issuance.
The new notes are unsecured and unsubordinated obligations of the issuer, Blackstone Holdings Finance Co. L.L.C. However, they are fully and unconditionally guaranteed, jointly and severally, by several indirect subsidiaries of The Blackstone Group Inc., which provides an additional layer of credit support.
The 2.500% Senior Notes due 2030 mature on January 10, 2030, and the 3.500% Senior Notes due 2049 mature on September 10, 2049. Both bear interest payable semiannually. The indenture includes covenants restricting the company's ability to incur secured debt or merge, and provides for redemption options and a change of control repurchase feature.