Item 7.01. Regulation FD Disclosure.
On September 7, 2022, Blackstone Secured Lending Fund (NYSE: BXSL) announced the
increase of its regular quarterly distribution from $0.53 per share to $0.60 per
share, which represents a 9.3% annualized distribution yield based on second
quarter NAV per share of $25.89. BXSL’s Board of Trustees (the “Board”) approved
the increase in distribution, which will become effective in the third quarter
of 2022 and apply to the previously declared quarterly distribution to
shareholders of record as of September 30, 2022, payable on November 14, 2022.
The foregoing quarterly distribution will be in addition to the previously
announced $0.20 special distribution payable on November 14, 2022.
The regular quarterly distribution increase is driven by BXSL’s strong earnings,
the quality of its portfolio and the positive impact from rising interest rates.
With nearly 100% of the portfolio invested in floating rate debt which benefits
from rising rates, and BXSL’s low fee structure, BXSL believes this creates an
opportunity to raise its regular quarterly distributions to more appropriately
align with its earnings power.
BXSL focuses on senior secured investments in high quality and larger business
across sectors Blackstone believes have tailwinds. As of June 30, 2022, the
portfolio is 98% senior secured with an average loan-to-value (LTV) of 46% and
an average issuer EBITDA of $149 million. BXSL expects this focus on seniority
and quality to continue going forward.1
A copy of the Fund’s press release announcing the foregoing is attached as
Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by
Item 9.01. Financial Statements and Exhibits
(d) Exhibits 99.1 Press Release dated September 7, 2022. 1 These calculations include all private debt investments for which fair value is determined by the Board in conjunction with a third-party valuation firm and excludes quoted assets. Amounts are weighted based on fair market value of each respective investment. Amounts were derived from the most recently available portfolio company financial statements, have not been independently verified by us, and may reflect a normalized or adjusted amount. Accordingly, BXSL makes no representation or warranty in respect of this information.
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