NEW YORK - Blackstone Mortgage Trust, Inc. (NYSE: NYSE:BXMT), a real estate finance company, has announced a private offering of $450 million of 7.750% senior secured notes due in 2029. The company stated that the proceeds from the offering will be utilized for general corporate purposes, including the reduction of existing secured debt.
The offering, which is set to close on December 10, 2024, is available only to qualified institutional buyers in the United States and to certain non-U.S. persons in offshore transactions. These notes will not be publicly offered or registered under the Securities Act of 1933, as amended, and will be subject to customary closing conditions.
Blackstone (NYSE:BX) Mortgage Trust specializes in originating senior loans secured by commercial real estate across North America, Europe, and Australia. The company aims to safeguard shareholder capital and generate attractive risk-adjusted returns mainly through dividends from its loan portfolio. The firm's strategy involves leveraging a variety of financing options to capitalize its senior loans, which are typically secured by institutional-grade assets.
The parent company, Blackstone, is recognized as the world's largest alternative asset manager, with over $1.1 trillion in assets under management. Blackstone's investment strategies span across multiple sectors, including real estate, private equity, and credit, among others.
This press release includes forward-looking statements, which are based on current expectations and projections about future events. The company cautions that these statements are subject to risks and uncertainties that could cause actual results to differ materially from those anticipated in the statements.
The information for this article is based on a press release statement.
In other recent news, Blackstone Mortgage Trust has reported mixed Q3 2024 earnings with a GAAP net loss of $0.32 per share but distributable earnings (DE) of $0.39 per share and $0.49 per share before charge-offs. Amid a changing interest rate environment, the company managed repayments totaling $1.8 billion and new originations close to $700 million. Blackstone Mortgage Trust also anticipates an increase in quarterly DE, reflecting confidence in its long-term strategy.
The company has recently launched a private offering to raise $450 million through the issuance of senior secured notes due 2029. The proceeds will be allocated for general corporate purposes, including the repayment of existing secured debts. This private offering targets qualified institutional buyers in the United States and certain international investors.
Despite expected short-term earnings pressure due to loan resolutions and impairments, the company maintains an optimistic outlook. It expects to recover over half of the $2.3 billion in impaired loans and is considering share buybacks alongside new loan originations. These recent developments suggest that Blackstone Mortgage Trust continues to strategically navigate the complexities of the current economic landscape.
InvestingPro Insights
Blackstone Mortgage Trust's recent announcement of a $450 million senior secured notes offering comes at a time when the company faces some financial challenges, as revealed by InvestingPro data. The real estate finance company's revenue for the last twelve months as of Q3 2024 stands at -$102.52 million, with a significant revenue decline of 126.65% over the same period. This context underscores the importance of the new debt offering for general corporate purposes and debt reduction.
Despite these headwinds, BXMT maintains a strong dividend profile. According to InvestingPro Tips, the company pays a significant dividend to shareholders, with a current dividend yield of 10.08%. Moreover, BXMT has maintained dividend payments for 13 consecutive years, demonstrating a commitment to shareholder returns even in challenging times.
The company's financial stability is further supported by another InvestingPro Tip, which indicates that BXMT's liquid assets exceed its short-term obligations. This liquidity position could provide some reassurance to potential note buyers and existing shareholders alike.
For investors seeking a more comprehensive analysis, InvestingPro offers additional tips and insights on Blackstone Mortgage Trust. The platform currently lists 8 more tips that could be valuable for understanding the company's financial health and future prospects.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.