Blackstone Secured Lending Fund Prices Public Offering of $400.0 million 5.350% Unsecured Notes due 2028

Rhea-AI Summary

Blackstone Secured Lending Fund (NYSE:BXSL) has priced a public offering of $400.0 million in aggregate principal amount of 5.350% notes due 2028. The notes will mature on April 13, 2028, and can be redeemed in whole or in part at BXSL's option. The company plans to use the net proceeds for general corporate purposes, including investing in line with their objectives and strategies, and repaying indebtedness.

The offering is expected to close on October 15, 2024, subject to customary conditions. Citigroup Global Markets, J.P. Morgan Securities, Morgan Stanley & Co., SMBC Nikko Securities America, and Truist Securities are acting as joint book-running managers. Investors are advised to carefully review the pricing term sheet, prospectus supplement, and accompanying prospectus before investing.

Positive

• Successful pricing of $400 million in unsecured notes
• Potential for increased investment capacity and portfolio growth
• Opportunity to repay existing indebtedness, potentially improving financial flexibility

Negative

• Additional debt may increase financial obligations and interest expenses
• Potential dilution of shareholder value if new investments underperform
• Market risks associated with fixed-rate notes in a changing interest rate environment

Insights

Financial Analyst

Blackstone Secured Lending Fund's (BXSL) offering of $400 million in unsecured notes is a significant move that could impact its financial flexibility and growth potential. The 5.350% interest rate for these 5-year notes seems competitive in the current market environment, potentially indicating strong investor confidence in BXSL's creditworthiness.

This debt issuance will likely enhance BXSL's liquidity position, providing additional capital for investments and potentially reducing its overall cost of capital. The company's intention to use the proceeds for general corporate purposes, including new investments and debt repayment, suggests a strategic approach to balance sheet management and portfolio expansion.

However, investors should consider the impact on BXSL's debt-to-equity ratio and interest coverage. While the additional capital could drive growth, it also increases financial leverage, which may affect the company's risk profile. The ability to repay existing debt with potentially lower interest rates could lead to improved profitability in the long term, but this depends on the effective deployment of the new capital.

NEW YORK--(BUSINESS WIRE)-- Blackstone Secured Lending Fund (NYSE:BXSL) (“BXSL” or the “Company”) announced today that it has priced an underwritten public offering of $400.0 million in aggregate principal amount of 5.350% notes due 2028. The notes will mature on April 13, 2028 and may be redeemed in whole or in part at BXSL’s option at the applicable redemption price.

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., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, SMBC Nikko Securities America, Inc. and Truist Securities, Inc. are acting as joint book-running managers for this offering. The offering is expected to close on October 15, 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 October 9, 2024, the preliminary prospectus supplement dated October 9, 2024 and the accompanying prospectus dated July 26, 2022, each of which have been or will be filed with the Securities and Exchange Commission (the “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, Edgewood, New York 11717 or toll-free at 1-800-831-9146 or by e-mail at prospectus@citi.com; J.P. Morgan Securities LLC at 383 Madison Avenue, New York, New York 10179, Attention: Investment Grade Syndicate Desk, 3^rd Floor or by calling collect at 1-212-834-4533; Morgan Stanley & Co. LLC at 180 Varick St., 2^nd Floor, New York, New York 10014, Attn: Prospectus Department or toll-free at 1-800-584-6837; SMBC Nikko Securities America, Inc. at 277 Park Avenue, New York, New York 10172, Attn: Debt Capital Markets, collect at +1-212-224-5135 or Truist Securities, Inc. at 3333 Peachtree Road, Atlanta, GA 30326, Attn: Prospectus Dept or toll-free at 1-800-685-4786 or TruistSecurities.prospectus@Truist.com.

About Blackstone Secured Lending Fund

Blackstone Secured Lending Fund (NYSE:BXSL) is a specialty finance company that invests primarily in the debt of private U.S. companies. As of June 30, 2024, BXSL’s fair value of investments was approximately $11.3 billion. BXSL has elected to be regulated as a business development company under the Investment Company Act of 1940, as amended. BXSL is externally managed by Blackstone Credit BDC Advisors LLC, an SEC-registered investment adviser that is an affiliate of Blackstone Inc. Blackstone Inc., together with its subsidiaries, is the world’s largest alternative investment firm with over $1.1 trillion of assets under management as of June 30, 2024.

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.

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Investors

Stacy Wang, Head of Stakeholder Relations

Blackstoneshareholderrelations@blackstone.com

+1 888-756-8443

Media

Thomas Clements

Thomas.Clements@blackstone.com

+1 646-482-6088

Source: Blackstone Secured Lending Fund

FAQ

What is the size and interest rate of BXSL's new note offering?

Blackstone Secured Lending Fund (BXSL) has priced a public offering of $400.0 million in aggregate principal amount of 5.350% notes due 2028.

When will BXSL's newly offered notes mature?

The notes offered by Blackstone Secured Lending Fund (BXSL) will mature on April 13, 2028.

How does BXSL plan to use the proceeds from the note offering?

BXSL intends to use the net proceeds for general corporate purposes, which may include investing in accordance with their investment objectives and strategies, and repaying indebtedness.

When is the expected closing date for BXSL's note offering?

The offering is expected to close on October 15, 2024, subject to customary closing conditions.