8-KMaterial AgreementsFinancial EventsExhibits & Filings

Blackstone Inc. 8-K Report, Material Agreement (Jun 8, 2022)

Filed June 8, 2022For Securities:BX

Summary

Blackstone Inc. (BX) announced on June 7, 2022, the entry into an amended and restated $4.135 billion revolving credit facility by its indirect subsidiaries, Blackstone Holdings Finance Co. L.L.C. (as borrower) and various Blackstone Holdings entities (as guarantors). This facility, effective June 3, 2022, replaces a previous agreement and extends the maturity date to June 3, 2027. Key changes include an increase in the minimum required fee-generating assets under management to $271.0 billion, up from $175.0 billion, and the transition from LIBOR to SOFR as the reference rate. These adjustments reflect evolving market standards and a higher threshold for asset management, indicating continued growth expectations and operational adjustments within Blackstone's financing structure. The credit facility remains unsecured and includes customary covenants such as a maximum net leverage ratio.

Key Highlights

  • 1Blackstone Inc. amended and restated its $4.135 billion revolving credit facility.
  • 2The maturity date of the credit facility has been extended from November 24, 2025, to June 3, 2027.
  • 3The minimum required fee-generating assets under management has increased from $175.0 billion to $271.0 billion.
  • 4The facility has transitioned from using LIBOR to SOFR as the applicable reference rate.
  • 5The credit facility is unsecured and includes standard financial covenants like a maximum net leverage ratio.
  • 6The amendment and restatement reflect an adaptation to market standards and potentially higher growth targets for Blackstone's asset management business.

Frequently Asked Questions

This filing announces the amendment and restatement of Blackstone's revolving credit facility, detailing key changes to its terms, maturity, and reference rate.

The credit facility's maturity has been extended to 2027, providing longer-term access to liquidity. The increase in the minimum fee-generating assets under management requirement suggests a higher bar for maintaining compliance, reflecting confidence in continued growth.

The transition from LIBOR to SOFR is a market-wide shift driven by the phasing out of LIBOR. SOFR is generally considered a more robust and reliable benchmark for secured overnight lending, reflecting current market practices and regulatory guidance.

No, the amended and restated credit facility remains unsecured, which is typical for large, established financial institutions like Blackstone.