Blackstone Prices $750 Million Senior Notes Offering

Rhea-AI Summary

Blackstone (NYSE: BX) has priced a $750 million offering of 5.000% senior notes due 2034 through its indirect subsidiary, Blackstone Reg Finance Co. The notes will be fully guaranteed by Blackstone Inc. and its indirect subsidiaries, including various Blackstone Holdings partnerships. The company plans to use the proceeds for general corporate purposes. The notes were offered under an effective shelf registration statement with the SEC, with several major financial institutions serving as points of contact for the prospectus and related materials.

Positive

• Successfully secured $750 million in debt financing
• Long-term debt maturity extending to 2034 provides financial flexibility

Negative

• Additional debt obligation increases company's leverage
• 5.000% interest rate represents new financial burden

Insights

Fixed Income Analyst

This $750 million senior notes offering at 5.000% with a 2034 maturity represents a strategic financing move by Blackstone. The pricing aligns with current market conditions, offering a reasonable yield for investors while allowing Blackstone to secure long-term financing. The full guarantee structure from Blackstone Inc. and its subsidiaries strengthens the notes' creditworthiness, making them attractive to institutional investors.

The broad underwriter syndicate, including major firms like BofA Securities, Citigroup, Morgan Stanley, RBC Capital Markets and SMBC Nikko, indicates strong market confidence in Blackstone's credit profile. While the "general corporate purposes" designation provides flexibility in fund utilization, this debt issuance enhances Blackstone's liquidity position and supports its operational capabilities without significantly impacting its balance sheet strength.

NEW YORK--(BUSINESS WIRE)-- Blackstone (NYSE: BX) priced its offering of $750 million of 5.000% senior notes due 2034 of Blackstone Reg Finance Co. L.L.C., its indirect subsidiary. The notes are to be fully and unconditionally guaranteed by Blackstone Inc. and its indirect subsidiaries, 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. Blackstone intends to use the proceeds from the notes offering for general corporate purposes.

The notes were offered pursuant to an effective shelf registration statement on file with the U.S. Securities and Exchange Commission (the “SEC”) and only by means of a prospectus and related prospectus supplement. An electronic copy of the prospectus supplement, together with the accompanying prospectus, is available on the SEC’s website at www.sec.gov. Alternatively, copies of the prospectus supplement and accompanying prospectus may be obtained from: BofA Securities, Inc., telephone: 1-800-294-1322; Citigroup Global Markets Inc., telephone: 1-800-831-9146; Morgan Stanley & Co. LLC, telephone: 1-866-718-1649; RBC Capital Markets, LLC, telephone: 1-866-375-6829; or SMBC Nikko Securities America, Inc., telephone: 1-212-224-5135.

This press release shall not constitute an offer to sell or a solicitation of an offer to purchase the notes or any other securities, and shall not constitute an offer, solicitation or sale in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241202475962/en/

Investor and Media Relations

For Investors

Weston Tucker

Blackstone

Tel: +1 (212) 583-5231

tucker@blackstone.com

For Media

Matthew Anderson

Blackstone

Tel: +1 (212) 390-2472

Matthew.Anderson@blackstone.com

Source: Blackstone

FAQ

What is the size and interest rate of Blackstone's (BX) 2024 senior notes offering?

Blackstone's senior notes offering is $750 million with a 5.000% interest rate, maturing in 2034.

How will Blackstone (BX) use the proceeds from its 2034 senior notes?

Blackstone intends to use the proceeds from the senior notes offering for general corporate purposes.

Which entities are guaranteeing Blackstone's (BX) 2034 senior notes?

The notes are guaranteed by Blackstone Inc. and its indirect subsidiaries: 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.