Blackstone to Offer Senior Notes

Rhea-AI Summary

Blackstone (NYSE: BX) has announced plans to offer senior notes through its indirect subsidiary, Blackstone Reg Finance Co. L.L.C. The notes will be fully guaranteed by Blackstone Inc. and its indirect subsidiaries, including various Blackstone Holdings partnerships. The company intends to use the proceeds for general corporate purposes. The offering will be made through an effective shelf registration statement with the SEC, with several major financial institutions serving as points of contact for the prospectus and supplementary materials.

Positive

• Access to additional capital through senior notes offering
• Strong institutional backing with multiple major financial institutions involved
• Full guarantee from parent company and subsidiaries strengthening the notes' security

Negative

• Potential increase in debt obligations
• Additional interest expense burden on future cash flows

Insights

Financial Analyst

This senior notes offering represents a strategic move by Blackstone to raise capital through debt financing. With $145B market cap and strong credit ratings, BX is likely to secure favorable interest rates. The offering's structure, backed by multiple Blackstone entities, provides robust security for investors. The timing suggests Blackstone may be positioning for opportunities in the current market environment, though the unspecified amount and terms limit detailed analysis.

The broad "general corporate purposes" designation for proceeds use provides maximum flexibility but could include debt refinancing, working capital enhancement, or potential investment opportunities. The involvement of top-tier underwriters (BofA, Citigroup, Morgan Stanley, RBC and SMBC Nikko) indicates strong institutional support and likely significant offering size.

NEW YORK--(BUSINESS WIRE)-- Blackstone (NYSE: BX) today announced its intention to offer, subject to market and other conditions, senior notes 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 are being 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 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/20241201627447/en/

Investor and Media Relations Contacts

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 purpose of Blackstone's (BX) senior notes offering in 2024?

Blackstone (BX) is offering senior notes to raise capital for general corporate purposes, with the notes being fully guaranteed by Blackstone Inc. and its indirect subsidiaries.

Who are the guarantors of Blackstone's (BX) new 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.

How can investors access information about Blackstone's (BX) senior notes offering?

Investors can access the prospectus and supplementary materials through the SEC's website or by contacting the designated financial institutions: BofA Securities, Citigroup Global Markets, Morgan Stanley, RBC Capital Markets, or SMBC Nikko Securities.