By Cristal Cody
Tupelo, Miss., Sept. 25 – Blackstone Holdings Finance Co. LLC priced $600 million of guaranteed senior notes (A+/A+) in two tranches in a Rule 144A and Regulation S offering on Monday, according to a market source and a press release.
The company sold $300 million of 3.15% 10-year notes at a spread of Treasuries plus 98 basis points.
Blackstone priced $300 million of 4% 30-year notes at a Treasuries plus 138 bps spread.
Both tranches priced tighter than talk.
The 10-year notes were talked to price in the Treasuries plus 105 bps area, plus or minus 5 bps.
Talk on the 30-year tranche was in the Treasuries plus 145 bps area, plus or minus 5 bps.
The bookrunners were Citigroup Global Markets Inc., Barclays, Credit Agricole CIB and Credit Suisse Securities (USA) LLC.
The notes will be fully and unconditionally guaranteed by parent company Blackstone Group LP and its indirect subsidiaries, Blackstone Holdings I LP, Blackstone Holdings AI LP, Blackstone Holdings II LP, Blackstone Holdings III LP and Blackstone Holdings IV LP.
Proceeds will be used with cash on hand or available liquidity to repurchase all of the company’s 6.625% senior notes due 2019 in a tender offer and redeem any of the 2019 notes that remain outstanding after the tender.
The investment and advisory firm is based in New York.
| Issuer: | Blackstone Holdings Finance Co. LLC
|
| Guarantors: | Blackstone Group LP and its indirect subsidiaries, Blackstone Holdings I LP, Blackstone Holdings AI LP, Blackstone Holdings II LP, Blackstone Holdings III LP and Blackstone Holdings IV LP
|
| Amount: | $600 million
|
| Description: | Senior notes
|
| Bookrunners: | Citigroup Global Markets Inc., Barclays, Credit Agricole CIB and Credit Suisse Securities (USA) LLC
|
| Trade date: | Sept. 25
|
| Ratings: | S&P: A+
|
| Fitch: A+
|
| Distribution: | Rule 144A, Regulation S
|
|
|
| 10-year notes
|
| Amount: | $300 million
|
| Maturity: | Oct. 2, 2027
|
| Coupon: | 3.15%
|
| Spread: | Treasuries plus 98 bps
|
| Price guidance: | Treasuries plus 105 bps area, plus or minus 5 bps
|
|
|
| 30-year notes
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| Amount: | $300 million
|
| Maturity: | Oct. 2, 2047
|
| Coupon: | 4%
|
| Spread: | Treasuries plus 138 bps
|
| Price guidance: | Treasuries plus 145 bps area, plus or minus 5 bps
|
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