Blackstone Group LP (BX:US), the world’s biggest buyout firm, raised as much as $960 million for its third closed-end fund investing in non-investment grade corporate debt.
The Blackstone/GSO Strategic Credit Fund pooled $834.8 million in an initial public offering and may be increased to as much as $960 million if the underwriters exercise an option to buy additional shares, according to a statement distributed today by Business Wire.
GSO Capital Partners LP, the credit-investment arm of New York-based Blackstone, is a “strong believer in the long-term opportunity in below-investment grade corporate credit,” Dan Smith, a senior managing director at Blackstone, said in the statement.
Morgan Stanley, Citigroup Inc., Bank of America Corp., UBS AG and Wells Fargo & Co. are the lead underwriters of the closed-end fund, which began trading today on the New York Stock Exchange under the ticker BGB. (BGB:US)
Earlier this month, Deutsche Bank AG raised a $563.9 million collateralized loan obligation for GSO, according to data compiled by Bloomberg.
CLOs are a type of collateralized debt obligation that pool high-yield, high-risk loans and slice them into securities of varying risk and return.
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