Blackstone/GSO fund to call $96 million notes, $48 million preferreds

By Susanna Moon

Chicago, Oct. 7 – Blackstone/GSO Senior Floating Rate Term fund said it plans to prepay its $96 million principal amount outstanding of senior secured notes and to redeem $48 million liquidation preference of its outstanding term preferred shares.

The notes and preferreds will be prepaid or redeemed at par plus the final accumulated interest or dividend amounts through the prepayment and redemption date of Oct. 8, according to a company press release.

The fund plans to finance the prepayment of its notes and redemption of its preferreds with borrowings under a new $142 million 364-day revolving credit facility and with cash on hand.

The refinancing will significantly reduce the fund’s cost of borrowing, resulting in a reduction of the fund’s total expense ratio, the company said.

Blackstone Group is an investment and advisory firm, and GSO is a credit-oriented alternative asset manager. Both are based in New York.

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