Blackstone Fund agrees to $500M notes due 2030

NEW YORK - Blackstone (NYSE:BX) Secured Lending Fund (NYSE:BXSL), a $7.63 billion market cap business development company with impressive 16% revenue growth over the last twelve months, has entered into an agreement with U.S. Bank Trust Company, National Association, to issue $500 million in 5.300% notes due June 30, 2030, according to a recent SEC filing. The transaction, which closed today, is part of the Fund’s broader debt strategy. According to InvestingPro, the company maintains a healthy current ratio of 1.05x.

The notes, unsecured general obligations of the Fund, will pay interest semi-annually and may be redeemed at the Fund’s discretion before maturity. They rank equally with future unsecured debt and are structurally junior to any secured debt and subsidiaries’ obligations. The company has demonstrated strong shareholder returns, maintaining a notable 9.19% dividend yield and having raised its dividend for four consecutive years.

The Fund has agreed to adhere to specific asset coverage requirements and to provide financial information to note holders if it is no longer subject to SEC reporting requirements. These covenants have certain stipulations and exceptions detailed in the Indenture.

In the event of a change of control, the Fund must offer to repurchase the notes at full principal value plus accrued interest. The notes were initially offered under a registration statement and prospectus filed with the SEC on February 27, 2025.

The details of the Base Indenture, Eighth Supplemental Indenture, and the notes are summarized from the full text of the respective documents, which are filed with the SEC and incorporated by reference. This financial move is part of Blackstone Secured Lending Fund ’s ongoing capital management strategy, as outlined in the press release statement.

In other recent news, Blackstone Secured Lending Fund reported its fourth-quarter 2024 earnings, revealing an earnings per share (EPS) of $0.84, which narrowly missed the forecast of $0.85. Despite this slight shortfall, the company achieved a record total investment income of $49 million, marking a 16% increase year-over-year. The Net Asset Value (NAV) per share rose to $27.39, reflecting the fund’s ongoing ability to generate shareholder value. Keefe, Bruyette & Woods analyst Paul Johnson adjusted the price target for Blackstone Secured Lending Fund to $32.00, up from $30.50, while maintaining a Market Perform rating. This adjustment followed a stable quarter, with the analyst noting strong net growth and a positive outlook on mergers and acquisitions activity. The fund also led significant financing deals, including a $2 billion debt financing for Dropbox (NASDAQ:DBX), showcasing its strategic investment capabilities. The company’s robust credit profile was highlighted, with less than 1% of investments categorized as stressed. Looking ahead, Blackstone Secured Lending Fund remains optimistic about the private credit market’s potential, with expectations for a recovery in mergers and acquisitions activity by late Q2 2025.

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