Today, Blackstone (NYSE:BX) Secured Lending Fund (NYSE:BXSL) announced the successful closing of a $400 million offering of 5.350% notes due in 2028. The offering, which was finalized on Tuesday, is part of a Seventh Supplemental Indenture with U.S. Bank Trust Company, National Association, supplementing the Base Indenture dated July 15, 2020.
The notes, which will mature on April 13, 2028, are unsecured and will pay interest semi-annually on April 13 and October 13, starting April 13, 2025. They are senior to any future indebtedness that is subordinated and pari passu with unsecured debt not subordinated. They are structurally junior to debts of the Fund's subsidiaries and effectively junior to any secured debt up to the value of the assets securing such debt.
The terms of the Indenture include certain covenants, obligating the Fund to adhere to asset coverage requirements as per the Investment Company Act of 1940 and to provide financial information if it is not subject to Securities Exchange Act of 1934 reporting requirements. Furthermore, the Fund must offer to repurchase the notes at face value plus accrued interest in the event of a "change of control repurchase event."
The notes were sold under the Registration Statement on Form N-2, with the preliminary prospectus supplement and pricing term sheet filed on October 9, 2024. The underwriting agreement for the transaction was dated October 9, 2024, and involved Blackstone Credit BDC Advisors LLC, Blackstone Alternative Credit Advisors LP, and several underwriters including Citigroup Global Markets Inc., J.P. Morgan Securities LLC, and Morgan Stanley & Co. LLC.
In other recent news, Blackstone Secured Lending Fund has reported significant developments. The company has amended its credit agreement with Bank of America, leading to reduced borrowing costs and extended credit availability. This new agreement, signed by Big Sky Funding LLC, a wholly-owned subsidiary of Blackstone Secured Lending Fund, includes a decrease in the margin for advances and extends the availability of advances until 2027.
In terms of financial performance, Blackstone Secured Lending Fund has recently revealed robust results. The company's net investment income per share increased to $0.89, translating to a 13.2% annualized return on equity. Total investment income also saw an 11% year-over-year rise, reaching $173 million.
Furthermore, the company has announced $1.3 billion in new commitments and $891 million in fundings. Analysts have noted that the fund's strategic positioning and focus on first lien senior secured loans continue to drive growth.
InvestingPro Insights
Blackstone Secured Lending Fund's (NYSE:BXSL) recent $400 million note offering aligns with its strong financial position and attractive dividend profile. According to InvestingPro data, BXSL boasts a market capitalization of $5.99 billion and a P/E ratio of 7.7, indicating a potentially undervalued stock relative to its earnings. The company's revenue growth of 18.03% over the last twelve months and 12.64% in the most recent quarter demonstrates robust financial performance.
InvestingPro Tips highlight BXSL's commitment to shareholder returns, noting that it "pays a significant dividend to shareholders" and "has raised its dividend for 3 consecutive years." This is further supported by the impressive dividend yield of 10.33%, which may be particularly appealing to income-focused investors in the current market environment.
The company's financial stability is underscored by another InvestingPro Tip, which states that "liquid assets exceed short term obligations," suggesting a strong balance sheet that can support the new debt issuance without compromising financial health.
For investors seeking more comprehensive analysis, InvestingPro offers 6 additional tips for BXSL, providing deeper insights into the company's financial position and market performance.
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