Blackstone Secured Lending Fund Prices Public Offering of $400.0 million 5.875% Unsecured Notes due 2027
Blackstone Secured Lending Fund (NYSE: BXSL) announced a public offering of $400 million in 5.875% unsecured notes due 2027. The notes will mature on November 15, 2027, and can be redeemed in part or whole at BXSL's discretion.
The net proceeds are intended for general corporate purposes, including investments and debt repayment. The offering is expected to close on May 20, 2024, subject to customary conditions. Joint book-running managers include Citigroup, Barclays, Goldman Sachs, RBC Capital Markets, and SMBC Nikko Securities America.
Investors are advised to review the prospectus and related documents for details on investment objectives, risks, charges, and expenses. The offer is based on a shelf registration statement filed with the SEC.
- Public offering of $400 million in notes, indicating strong capital raising capabilities.
- 5.875% interest rate on notes, potentially attracting income-focused investors.
- Funds to be used for general corporate purposes, including investments and debt repayment, which could support business growth.
- The offering is managed by leading financial institutions (Citigroup, Barclays, Goldman Sachs, RBC Capital Markets, SMBC Nikko Securities America), indicating high confidence in the offering.
- Issuing new debt could increase the company's leverage, posing potential risks if the funds are not effectively utilized.
- Interest payments on the new debt will add to the company's financial obligations.
- Potential dilution of shareholder value if the raised funds do not lead to proportional business growth.
- Dependence on the closing of the offering, which is subject to customary conditions, adds an element of uncertainty.
Insights
The issuance of $400 million in unsecured notes at a 5.875% interest rate signals Blackstone Secured Lending Fund's (BXSL) strategy to expand its investment capacity. This move can be viewed positively as it provides the company with additional capital to pursue its investment objectives, which may include acquiring new assets or refinancing existing debt at potentially more favorable terms.
From a financial perspective, the interest rate on these notes is relatively high compared to current market rates for high-quality debt, which could indicate that BXSL is facing higher borrowing costs or that they anticipate lucrative investment opportunities that justify these costs. It's important for retail investors to consider the balance between the cost of this debt and the potential returns from the investments it will fund.
Furthermore, the involvement of major financial institutions like Citigroup, Barclays and Goldman Sachs as joint book-running managers suggests strong institutional support and confidence in BXSL's creditworthiness, which may provide additional reassurance to retail investors.
From a market perspective, this offering aligns with a broader trend of companies leveraging debt markets to fund growth, reflecting robust investor appetite for corporate bonds. The chosen maturity date of November 15, 2027, offers medium-term financing that balances the need for immediate capital while avoiding long-term interest rate risk.
Retail investors should note that the proceeds are earmarked for general corporate purposes, which provides flexibility but also lacks specific clarity on investment targets. This could be a double-edged sword; flexibility allows BXSL to seize diverse opportunities, but the lack of specificity might concern risk-averse investors who prefer detailed roadmaps.
Additionally, given current economic uncertainties, the potential redemption feature offers BXSL a strategic advantage to refinance or retire this debt early if interest rates decline, benefiting shareholders by reducing interest expenses.
The Company expects to use the net proceeds from this offering for general corporate purposes, which may include, among other things, investing in accordance with our investment objectives and strategies described in the prospectus supplement and the accompanying prospectus described below in greater detail and repaying indebtedness (which will be subject to reborrowing).
Citigroup Global Markets Inc., Barclays Capital Inc., Goldman Sachs & Co. LLC, RBC Capital Markets, LLC and SMBC Nikko Securities America, Inc. are acting as joint book-running managers for this offering. The offering is expected to close on May 20, 2024, subject to customary closing conditions.
Investors are advised to carefully consider the investment objectives, risks, charges and expenses of the Company before investing. The pricing term sheet dated May 13, 2024, the preliminary prospectus supplement dated May 13, 2024 and the accompanying prospectus dated July 26, 2022, each of which have been or will be filed with the Securities and Exchange Commission (“SEC”), contain this and other information about the Company and should be read carefully before investing.
The information in the pricing term sheet, the preliminary prospectus supplement, the accompanying prospectus and this press release is not complete and may be changed. The pricing term sheet, the preliminary prospectus supplement, the accompanying prospectus and this press release are not offers to sell any securities of BXSL and are not soliciting an offer to buy such securities in any state or jurisdiction where such offer and sale is not permitted.
An effective shelf registration statement relating to these securities is on file with the SEC and is effective. The offering may be made only by means of a preliminary prospectus supplement and an accompanying prospectus, copies of which may be obtained from the website of the SEC at www.sec.gov or from Citigroup Global Markets Inc. at c/o Broadridge Financial Solutions, 1155 Long Island Avenue,
About Blackstone Secured Lending Fund
Blackstone Secured Lending Fund (NYSE:BXSL) is a specialty finance company that invests primarily in the debt of private
Forward-Looking Statements and Other Matters
Certain information contained in this communication constitutes “forward-looking statements” within the meaning of the federal securities laws and the Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by the use of forward-looking terminology, such as “outlook,” “indicator,” “believes,” “expects,” “potential,” “continues,” “may,” “can,” “will,” “should,” “seeks,” “approximately,” “predicts,” “intends,” “plans,” “estimates,” “anticipates”, “confident,” “conviction,” “identified” or the negative versions of these words or other comparable words thereof. These may include BXSL’s financial estimates and their underlying assumptions, statements about plans, statements regarding pending transactions (including the offering), objectives and expectations with respect to future operations, statements regarding future performance, statements regarding economic and market trends and statements regarding identified but not yet closed investments. Such forward‐looking statements are subject to various risks and uncertainties. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in such statements. BXSL believes these factors include but are not limited to those described under the section entitled “Risk Factors” in its prospectus and annual report for the most recent fiscal year, and any such updated factors included in its periodic filings with the SEC, which are accessible on the SEC’s website at www.sec.gov. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this document (or BXSL’s prospectus and other filings). Except as otherwise required by federal securities laws, BXSL undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future developments or otherwise.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240513618665/en/
Investors
Stacy Wang, Head of Stakeholder Relations
Blackstoneshareholderrelations@blackstone.com
+1 888-756-8443
Media
Mariel Seidman-Gati
Mariel.seidmangati@blackstone.com
+1 917-698-1674
Source: Blackstone Secured Lending Fund
FAQ
What is the yield of Blackstone Secured Lending Fund's new notes?
When will the Blackstone Secured Lending Fund's notes mature?
How much is Blackstone Secured Lending Fund raising through the public offering?
What will Blackstone Secured Lending Fund use the net proceeds for?
Who are the book-running managers for Blackstone Secured Lending Fund's offering?
When is the expected closing date for Blackstone Secured Lending Fund's offering?
