Blackstone Mortgage (BXMT) to Raise $ 400 Million via Note Offer


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Blackstone Mortgage Trust, Inc. BXMT recently announced a private offering of senior secured notes totaling $ 400 million. Debt securities mature in 2027.

Blackstone Mortgage’s efforts to strengthen its short-term liquidity in these difficult times and raise capital in the debt market in the current low interest rate environment are strategic adjustments.

However, the supply of notes increases the company’s long-term debt. As of June 30, its guaranteed debt stood at $ 8.7 billion. The offering of the Notes will likely result in a further increase in interest charges, limiting earnings growth.

Nonetheless, with an improvement in the interest earned ratio of 2.2 as well as $ 289.5 million in cash and cash equivalents (as of June 30, 2021), Blackstone Mortgage is expected to have sufficient liquidity after fulfilling its obligations. interest on debts to continue investing in the Company.

Earlier this month, the company also sold ten million Class A common shares in a subscribed public offering. He plans to channel the funds raised into working capital and other general business needs, including helping to create additional commercial mortgages as well as other target assets and investments. Given the strong rebound in volumes of commercial real estate and commercial mortgage transactions, the focus on financing these arrangements will allow the company to benefit from this recovery. During the end of June quarter, the company initiated or acquired $ 2.2 billion in loans in 21 transactions. The momentum continued with Blackstone Mortgage, which granted $ 2.6 billion in loans as of September 9. It also had over $ 4 billion in additional loans at closing on the same date.

As a result of these efforts, the company has broadened its investment portfolio. As of August 31, 2021, the principal balance of its total investment portfolio stood at $ 20.1 billion, up from $ 18.2 billion at the end of the previous year.

Blackstone Mortgage currently carries a Zacks Rank # 3 (Hold). You can see The full list of Zacks # 1 Rank (Strong Buy) stocks today here. The company’s shares lost 2%, against the industry3.1% growth over the past six months.

Image source: Zacks Investment Research

In August 2021, Gladstone Investment Company GAIN has priced a public offering of notes totaling $ 117 million. The Notes, which will mature on November 1, 2028, will bear interest of 4.875%.

Franklin Resources, Inc. BEN fixed the price for a public offering of two series of notes, totaling $ 450 million in principal. This includes all or part of its $ 300 million 2.800% notes due 2022, as well as $ 250 million of Legg Mason 3.950% senior notes due 2024. (Read more: Franklin to Acquire Capital with $ 450 Million Note Issue)

The same month, Huntington Bancshares Incorporated HBAN also used a private offering of unsecured subordinated notes. The company has priced $ 500 million in principal of fixed rate notes at 100% of the total principal amount. The notes bear a coupon rate of 2.487% and are expected to mature in 2036.

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Franklin Resources, Inc. (BEN): Free Stock Analysis Report

Huntington Bancshares Incorporated (HBAN): Free Stock Analysis Report

Gladstone Investment Corporation (GAIN): Free Stock Analysis Report

Blackstone Mortgage Trust, Inc. (BXMT): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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