Blackstone private credit fund raises $1.5bn from bond sale and CLO
Blackstone’s flagship private credit fund raised $1.5bn (£1.2bn) in a single day via a bond sale and a collateralised loan obligation (CLO) backed by its own loans.
The fund, known as BCRED, sold $600m of its 10-year bonds – the fund’s first-ever 10-year bond sale – and $400m of five-year bonds, according to a source cited by Bloomberg.
Read more: Blackstone credit funds announce leadership changes
It also raised $500.5m from a CLO.
The top-rated tranche of the CLO was priced 1.5 per cent over the Secured Overnight Financing Rate, which is tighter than the average private credit CLO tranche rated AAA issued this year, according to data compiled by Bloomberg.
Read more: Blackstone Secured Lending Fund reports record $186m Q3 net investment income
Private credit funds are issuing record levels of investment-grade debt, enabling them to access a different investor demographic.
By the end of September, business development companies had sold a record $21.8bn of investment-grade bonds, according to data from Deutsche Bank.
Read more: Blackstone raises $22bn for first series of US direct lending fund
