Key Takeaways
- • Blackstone Private Credit Fund priced $750 million of unsecured 6.200% notes due November 15, 2031, on August 17, 2026, with settlement on August 19 on a T+2 basis, reportedly upsized from an initial $500 million target.
- • The notes carry a 6.428% yield to maturity and a 205 basis point spread over the 4.375% Treasury due July 31, 2031, priced at 98.966% of par with denominations starting at $2,000.
- • Expected credit ratings are Moody's Baa2 (stable outlook) and S&P BBB- (positive outlook), positioning the notes at the lowest investment-grade rung for S&P and one notch higher for Moody's.
- • The offering converts floating-rate liabilities into fixed-rate unsecured term funding through 2031, locking in a known cost of capital against a portfolio still predominantly composed of floating-rate direct loans.
- • A wide dealer group including Wells Fargo, Citigroup, Goldman Sachs, RBC, and SMBC acted as joint bookrunners, with Blackstone Securities Partners serving as co-manager.
Summary
Blackstone Private Credit Fund completed a $750 million unsecured term debt offering on August 17, 2026, pricing 6.200% notes due November 15, 2031. The notes settled two business days later on August 19. According to the free-writing prospectus, the issue price of 98.966% of principal yielded 6.428% to maturity, with a Treasury spread of 205 basis points over the 4.375% Treasury due July 31, 2031. Semi-annual interest payments are scheduled for May 15 and November 15 each year, with the first coupon due May 15, 2027.
The debt structure includes standard call provisions typical of investment-grade corporate notes. The fund may redeem the notes prior to the par call date of October 15, 2031—one month before maturity—at the greater of par or the present value of remaining payments calculated at the applicable Treasury rate plus 35 basis points, plus accrued interest. On or after the par call date, redemption is available at par plus accrued interest. Minimum denominations begin at $2,000.
Expected credit ratings place the notes at the lower end of investment grade. Moody's assigned a Baa2 rating with a stable outlook, while S&P rated the notes BBB- with a positive outlook. These are expected ratings disclosed on the term sheet and do not represent final surveillance ratings. The offering was marketed by a syndicate including Wells Fargo, Citigroup, Goldman Sachs, RBC, and SMBC as joint bookrunners, with Blackstone Securities Partners among the co-managers.
For private-credit allocators, the strategic relevance of this offering lies in its role in restructuring Blackstone Private Credit Fund's liability stack. The fixed-rate unsecured notes convert what had been floating-rate revolvers and other variable-cost funding into a known, locked-in cost of capital extending to 2031. This is particularly significant given that the fund's asset base remains predominantly weighted toward floating-rate direct-lending loans. The deal signals term-funding activity within the broader BDC market during a period of active capital-markets issuance across the sector.
The debt structure includes standard call provisions typical of investment-grade corporate notes. The fund may redeem the notes prior to the par call date of October 15, 2031—one month before maturity—at the greater of par or the present value of remaining payments calculated at the applicable Treasury rate plus 35 basis points, plus accrued interest. On or after the par call date, redemption is available at par plus accrued interest. Minimum denominations begin at $2,000.
Expected credit ratings place the notes at the lower end of investment grade. Moody's assigned a Baa2 rating with a stable outlook, while S&P rated the notes BBB- with a positive outlook. These are expected ratings disclosed on the term sheet and do not represent final surveillance ratings. The offering was marketed by a syndicate including Wells Fargo, Citigroup, Goldman Sachs, RBC, and SMBC as joint bookrunners, with Blackstone Securities Partners among the co-managers.
For private-credit allocators, the strategic relevance of this offering lies in its role in restructuring Blackstone Private Credit Fund's liability stack. The fixed-rate unsecured notes convert what had been floating-rate revolvers and other variable-cost funding into a known, locked-in cost of capital extending to 2031. This is particularly significant given that the fund's asset base remains predominantly weighted toward floating-rate direct-lending loans. The deal signals term-funding activity within the broader BDC market during a period of active capital-markets issuance across the sector.
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