HG bonds: Blackstone Holdings places $1.5B offering in 2 parts; terms

Blackstone Holdings Finance Co. today completed a $1.5 billion, two-part offering across senior issues due 2032 and 2052.

The issuer last tapped the market in July 2021 when it placed a $2 billion offering across 1.625% notes due August 2028 at T+65, 2% notes due January 2032 at T+85, and 2.85% notes due August 2051 at T+93. For reference, the 2032 issue traded Dec. 28, 2021, at a G-spread of 89 basis points, and the 2051 issue changed hands Dec. 22, 2021, at a G-spread of 108 bps, according to MarketAxess.

Proceeds from the July 2021 bond placement were used to back Blackstone's $2.2 billion acquisition of a 9.9% stake in American International Group Inc.'s life and retirement business, which closed in November 2021, and for other general corporate purposes.

S&P Global Ratings maintains an A+ profile and stable outlook on the company. "We continue to forecast that Blackstone will operate with debt to adjusted EBITDA comfortably below 1.5x during the next 12-24 months," the agency said at the time of the July 2021 bond offering.

Fitch affirmed its A+ rating and stable outlook in November 2021.

Blackstone Holdings Finance engages in treasury-related activities, such as acting as borrower under certain short-term credit facilities and long-term senior notes. It operates as a subsidiary of New York-based The Blackstone Group Inc., an alternative asset management firm specializing in real estate, private equity, hedge fund solutions, credit, secondary funds of funds, public debt and equity, and multi-asset-class strategies.

Terms: