Blackstone’s New BDC Secures $500 Million Revolving Credit Facility

Blackstone Private Credit Fund, a recently launched non-traded business development company sponsored by Blackstone, announced that its subsidiary BCRED Summit Peak Funding LLC has entered into a $500 million senior secured revolving credit facility with Société Générale.

Société Générale serves as agent; Wilmington Trust National Association serves as collateral agent, custodian and collateral administrator; and Blackstone Private Credit Fund serves as servicer.

Proceeds from borrowings may be used to fund portfolio investments by Summit Peak and to make advances under revolving loans or delayed draw term loans where Summit Peak is a lender. All amounts outstanding must be repaid five years after the credit facility closes.

Summit Peak’s obligations to the lenders are secured by a first priority security interest in all of Summit Peak’s portfolio investments and cash. The obligations of Summit Peak under the revolving credit facility are non-recourse to Blackstone Private Credit Fund.

Advances used to finance the purchase or origination of broadly syndicated loans under the revolving credit facility initially bear interest at a blended per year rate adjusted monthly based on the proportion of the broadly syndicated loans in the portfolio to the proportion of middle market loans in the portfolio.

The rate attributed to broadly syndicated loans will equal the three-month London Interbank Offered Rate in effect, plus the applicable margin of 1.50 percent per year. The rate attributed to middle market loans equals LIBOR plus the applicable margin of 2.15 percent per year, and with the blended rate subject to a floor of LIBOR plus 2.00 percent per year.

Blackstone Private Credit Fund broke escrow with approximately $814 million in net proceeds for its continuous public offering on January 7, 2021. The fund is part of Blackstone Credit’s $21 billion direct lending platform, which provides privately originated, senior secured, floating rate loans to U.S. and European middle market companies.

Click here to visit The DI Wire directory page.