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Simpson Thacher Represents Fund Advised by Blackstone Credit in Private Placement of Mandatory Redeemable Preferred Stock

07.27.23

Simpson Thacher represented Blackstone Strategic Credit 2027 Term Fund in a private placement of fixed-rate mandatory redeemable preferred stock. The offering raised aggregate proceeds of $45 million. Net proceeds from the offering will be used to repay existing leverage, make new portfolio investments and for general trust purposes.

The Fund is a diversified closed-end investment management company advised by Blackstone Liquid Credit Strategies LLC, an established corporate credit investment platform with approximately $291 billion in assets under management as of March 31, 2023. The Fund invests primarily in a diversified portfolio of loans and other fixed income instruments of predominantly U.S. corporate issuers, including first‐ and second‐lien loans and high yield corporate bonds of varying maturities. The Fund’s primary investment objective is to seek high current income, with a secondary objective to seek preservation of capital, consistent with its primary goal of high current income. The Fund has a limited term and will dissolve on or about September 15, 2027, absent shareholder approval to extend such term. Its common shares trade on the New York Stock Exchange under the symbol “BGB.”

The Simpson Thacher team for the transaction included Rajib Chanda, Debbie Sutter, Erin Randall and Mike D’Agostino (Registered Funds).