Business Context and Reporting Period
This Form 8-K filing by The Blackstone Group Inc. (Blackstone) reports material events occurring on September 9 and September 10, 2019. The filing details the completion of a new senior notes offering and the results of a cash tender offer for existing debt.
Key Financial Metrics and Debt Activity
The filing focuses on capital structure changes rather than operating performance metrics such as revenue or cash flow, which are not provided in this document.
- New Debt Issuance: Blackstone issued $900 million in aggregate principal amount of new senior notes.
- $500 million of 2.500% Senior Notes due 2030.
- $400 million of 3.500% Senior Notes due 2049.
- Debt Repurchase (Tender Offer): Blackstone conducted a tender offer for its outstanding 5.875% Senior Notes due 2021.
- Total outstanding Tender Notes: $400 million.
- Amount validly tendered: $174,555,000.
- Excluded from tendered amount: $200,000 subject to guaranteed delivery procedures.
- Interest Payments: Interest on new notes is payable semiannually in arrears, commencing January 10, 2020 (2030 Notes) and March 10, 2020 (2049 Notes).
Material Changes Versus Prior Period
This filing does not provide comparative financial data (e.g., revenue or profit changes) versus prior periods. The material change is the alteration of the company's debt profile through the issuance of $900 million in new long-term debt and the partial retirement of $174.555 million in 2021 debt.
Guidance, Risks, and Unusual Items
Terms and Covenants: The new notes are unsecured and unsubordinated obligations, fully and unconditionally guaranteed by Blackstone and its subsidiaries. The indenture includes covenants limiting the ability to incur indebtedness secured by liens on voting stock or profit-participating equity interests.
Redemption and Repurchase:
- Make-Whole Redemption: Available prior to October 10, 2029 (2030 Notes) and March 10, 2049 (2049 Notes).
- Par Redemption: Available on or after the dates listed above.
- Change of Control: If a change of control repurchase event occurs, the Issuer must repurchase the notes at 101% of the aggregate principal amount plus accrued interest.
Risks: The notes were offered pursuant to Rule 144A and Regulation S and have not been registered under the Securities Act of 1933. They may not be offered or sold in the United States absent registration or an applicable exemption.
Investor Verification Checklist
- Verify the final settlement of the $174,555,000 tendered amount for the 2021 Notes and confirm the treatment of the $200,000 guaranteed delivery amount.
- Review the full text of the Thirteenth and Fourteenth Supplemental Indentures (Exhibits 4.2 and 4.4) for specific covenant limitations.
- Confirm the use of proceeds from the $900 million new issuance to ensure alignment with debt refinancing strategies.
- Monitor the interest rate environment relative to the 2.500% and 3.500% coupon rates to assess refinancing costs.