Business Context and Reporting Period
This Form 8-K filing by The Blackstone Group L.P. (Blackstone) reports a material event occurring on March 23, 2010. The filing details the establishment of a new direct financial obligation by Blackstone Holdings Finance Co. L.L.C., an indirect wholly-owned subsidiary of the Partnership.
Key Financial Metrics and Obligations
- New Debt Facility: Entered into a $1.070 billion revolving credit facility.
- Lenders: Citibank, N.A. serves as the Administrative Agent.
- Maturity Date: March 23, 2013.
- Interest Structure: Based on adjusted LIBOR or alternate base rate plus a margin; undrawn commitments incur a fee.
- Currency Options: Borrowings available in U.S. Dollars, U.K. Sterling, or Euros (subject to sub-limits).
- Security Status: The facility is unsecured.
- Guarantors: Blackstone Holdings I L.P., II L.P., III L.P., and IV L.P. (all indirect wholly-owned subsidiaries).
Material Changes and Covenants
The creation of this facility represents a significant change in the company's capital structure. The agreement includes customary representations and covenants with the following specific financial requirements:
- Maximum Net Leverage Ratio: A specific cap on leverage is required, tested quarterly.
- Minimum Fee-Generating Assets: The registrant must maintain a minimum amount of fee-generating assets under management, tested quarterly.
Note: The filing text does not provide specific numerical values for the leverage ratio cap or the minimum asset threshold, nor does it disclose current revenue, profit, or cash flow figures.
Guidance, Outlook, and Risks
The filing does not contain forward-looking guidance, management commentary on future performance, or a discussion of general business risks beyond the standard events of default applicable to the credit facility. The primary contingency noted is the adherence to the financial covenants described above.
Key Facts for Investor Verification
- Verify the specific numerical thresholds for the maximum net leverage ratio and minimum fee-generating assets in the attached Credit Agreement (Exhibit 10.1).
- Confirm the current utilization rate of the new $1.070 billion facility.
- Review the specific margin rates applied to LIBOR or the alternate base rate.
- Assess the impact of this new debt on the company's overall liquidity position relative to existing obligations.