Blackstone Private Credit Fund, a non-traded business development company sponsored by private equity giant Blackstone (NYSE: BX), announced the increase of its regular monthly distribution from $0.2100 per share to $0.2200 per share.
The company says this represents a 10.6% annualized distribution yield for Class I Common Shares, based on the June 30, 2023 net asset value per share of $24.86.
The company’s board of trustees approved the increase in distribution, which will become effective for the August 2023 monthly distribution with the record date of August 31, 2023, and will be paid on or about September 27, 2023.
The DI Wire previously reported BCRED’s recent regular monthly distribution increases from $0.1900 to $0.2100 per share for Class I Common Shares in December 2022, and from $0.1740 to $0.1900 per share for Class I Common Shares in September 2022.
“These recent regular monthly distribution increases are driven by the continued growth of BCRED’s earnings power, which is positively impacted by higher base interest rates and wider deal spreads,” says the company.
The company stated that their earnings power is supported by its “quality portfolio” that is comprised of 97% senior secured debt with an average loan-to-value of 43%.
With 98% of BCRED’s portfolio invested in floating rate debt, BCRED believes this creates an opportunity to increase regular distributions to align with their earnings power.
As of June 30, 2023, the fund’s aggregate NAV was $23.8 billion, the fair value of its investment portfolio was $47.7 billion, and it had $24.4 billion of debt outstanding (at principal). The fund has raised $28.1 billion in equity.