Blackstone to Offer Senior Notes

Rhea-AI Summary

Blackstone (NYSE: BX) announced plans to offer senior notes through its subsidiary Blackstone Holdings Finance Co. L.L.C. The notes will be guaranteed by The Blackstone Group Inc. and its subsidiaries. Proceeds from this offering will support general corporate purposes, including funding a portion of the acquisition price for a 9.9% equity stake in American International Group, Inc.’s life and retirement business. The offering is aimed at qualified institutional buyers under Rule 144A and Regulation S.

Positive

• Plans to acquire a 9.9% equity interest in American International Group’s life and retirement business.
• Offering of senior notes could enhance liquidity and financial flexibility.

Negative

• Notes are unregistered and may pose regulatory risks.
• Dependence on market conditions for the successful completion of the offering.

Blackstone (NYSE: BX) today announced its intention to offer, subject to market and other conditions, senior notes of Blackstone Holdings Finance Co. L.L.C., its indirect subsidiary. The notes will be fully and unconditionally guaranteed by The Blackstone Group 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, which may include, without limitation, to fund a portion of the purchase price for Blackstone’s previously announced acquisition of a 9.9% equity interest in American International Group, Inc.’s life and retirement business.

The notes will be offered and sold to qualified institutional buyers in the United States pursuant to Rule 144A and outside the United States pursuant to Regulation S under the Securities Act of 1933.

The notes have not been registered under the Securities Act of 1933 or any state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act of 1933 and applicable state laws.

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. This press release is being issued pursuant to and in accordance with Rule 135c under the Securities Act of 1933.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210729005652/en/

FAQ

What is Blackstone's recent announcement regarding senior notes?

Blackstone intends to offer senior notes through its subsidiary to support corporate purposes, including an acquisition.

How will the proceeds from the senior notes be used?

The proceeds will fund part of the purchase price for a 9.9% equity interest in American International Group’s life and retirement business.

Who guarantees the senior notes being offered by Blackstone?

The notes will be fully guaranteed by The Blackstone Group Inc. and its indirect subsidiaries.

What are the conditions for the sale of Blackstone's senior notes?

The notes will be sold to qualified institutional buyers under Rule 144A and Regulation S.

Are the senior notes registered under the Securities Act?

No, the notes have not been registered and cannot be sold in the US without registration or an exemption.