S&P rates Blackstone notes A+

Standard & Poor's said it assigned an A+ rating on the Blackstone Group LP's proposed 30-year notes issuance.

The size of the offering has not been finalized and will be subject to market conditions, S&P said. For the purpose of the rating, the agency said it assumes the amount will be no more than $500 million.

The notes will be issued by subsidiary Blackstone Holdings Finance Co. LLC and will be fully and unconditionally guaranteed by the Blackstone Group, as well as Blackstone Holdings I LP, II LP, III LP and IV LP, on a joint and several basis.

The proceeds will be used for general corporate purposes.

The A+ issuer credit rating and stable outlook on Blackstone are unchanged despite that pro forma credit metrics will weaken somewhat on account of the increase in debt.

These metrics are expected to improve again over the next 12 to 18 months as Blackstone continues to increase its fee-paying assets under management, S&P said.

The company has recurring revenue streams from diverse business segments, along with a strong balance sheet and 28-year strong investment performance record, the agency said.

But, asset valuations have recovered to pre-crisis levels, S&P said, and investment opportunities that meet Blackstone's criteria will be harder to come by.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.