Blackstone Inc. current report, 13 August 2009

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Business Context and Reporting Period

This Form 8-K filing by The Blackstone Group L.P. (Blackstone) reports a material event occurring on August 13, 2009. The filing details a debt financing transaction executed by Blackstone Holdings Finance Co. L.L.C., an indirect subsidiary of the registrant.

Key Financial Metrics

  • Debt Issuance: $600,000,000 aggregate principal amount of 6.625% Senior Notes due 2019.
  • Guarantees: The notes are fully and unconditionally guaranteed by The Blackstone Group L.P. and four of its holding companies (Blackstone Holdings I, II, III, and IV L.P.).
  • Use of Proceeds: Net proceeds are designated for general corporate purposes.
  • Revenue, Profit, Cash Flow, Margins, Liquidity: The filing text does not provide a clear value for these operational metrics.

Material Changes

The primary material change is the expansion of the company's debt capital structure through the pricing of the new senior notes. This represents a significant increase in long-term liabilities compared to the prior period, though specific comparative balance sheet data is not included in this report.

Outlook, Risks, and Unusual Items

  • Regulatory Status: The notes were offered pursuant to Rule 144A and Regulation S under the Securities Act of 1933.
  • Registration Risk: The notes have not been registered under the Securities Act and may not be offered or sold in the United States absent registration or an applicable exemption.
  • Management Commentary: No specific outlook or forward-looking guidance regarding future performance is provided in this filing.

Investor Verification Checklist

  • Verify the final closing date and actual net proceeds received after underwriting fees.
  • Review the indenture for specific covenants, prepayment terms, and events of default associated with the 6.625% Senior Notes.
  • Confirm the impact of the new debt on the company's leverage ratios and liquidity position in the most recent 10-Q or 10-K.
  • Assess the current market yield for similar high-yield debt to evaluate the cost of capital relative to the 6.625% coupon rate.