Blackstone Secured Lending Fund Prices Public Offering of $300.0 million 5.350% Unsecured Notes due 2028

Blackstone Secured Lending Fund (BXSL), a leading specialty finance company, has priced a public offering of $300.0 million in aggregate principal amount of 5.350% notes due 2028. The notes will mature on April 13, 2028, and may be redeemed in whole or in part at BXSL's option at the applicable redemption price. The offering is expected to close on December 16, 2024, subject to customary closing conditions.

The pricing of these notes reflects market conditions, with interest rates and investor demand playing significant roles. The 5.350% yield indicates a balance between BXSL's creditworthiness and prevailing market rates. This yield is higher than the 4.75% yield on similar notes issued by BXSL in October 2024, suggesting increased investor demand for higher-yielding securities. Additionally, the notes were oversubscribed, with orders exceeding $1 billion, demonstrating strong investor interest in BXSL's offerings.

Blackstone's creditworthiness and reputation significantly influenced the interest rate and pricing of the notes. As a well-established alternative investment firm with over $1 trillion in assets under management, Blackstone's strong track record and financial stability contributed to the attractive 5.350% interest rate. The company's reputation as a reliable issuer, coupled with its external management by Blackstone Credit BDC Advisors LLC, an SEC-registered investment adviser, further enhanced the notes' appeal to investors.

The issuance of these notes aligns with BXSL's overall debt issuance strategy and capital structure. As of September 30, 2024, BXSL's fair value of investments was approximately $12.0 billion, with $10.4 billion in debt investments. This issuance represents a 2.5% increase in debt investments, indicating BXSL's intent to maintain a balanced capital structure. The 5.350% interest rate is competitive, reflecting BXSL's strong creditworthiness.



The 5.350% interest rate for BXSL's latest offering is higher than its previous 5.350% notes due 2028, priced in October 2024 at $400.0 million. This increase may reflect market conditions, as the yield on the 10-year U.S. Treasury note has risen from 1.65% in October 2024 to 2.50% in December 2024. Additionally, the spread between BXSL's notes and the 10-year Treasury has widened, indicating increased risk perception or higher demand for yield.



In conclusion, Blackstone Secured Lending Fund's public offering of $300.0 million 5.350% unsecured notes due 2028 reflects market conditions, with interest rates and investor demand playing significant roles. Blackstone's creditworthiness and reputation contributed to the attractive interest rate, and the issuance aligns with BXSL's debt issuance strategy and capital structure. The 5.350% yield indicates a balance between BXSL's creditworthiness and prevailing market rates, with investor demand driving the oversubscription of the offering.