Proposed Managed Wind-Down of the Company

Blackstone Loan Financing Limited

23 June 2023

 

The information contained within this announcement constitutes inside information.

23 June 2023

Blackstone Loan Financing Limited

(the "Company")

Proposed Managed Wind-Down of the Company

Blackstone Loan Financing Limited announces that after extensive consultation with its advisers, the board of directors (the "Board") has decided to put forward proposals for a managed wind-down of the Company (the "Managed Wind-Down"). The Board and Blackstone Ireland Limited (the "Investment Adviser") unanimously recommend that shareholders vote in favour of the Managed Wind-Down of the Company, which they believe to be in the best interest of shareholders, for the reasons set out below.

The performance of the Company has proved resilient over its nine-year life, which has spanned a variety of market conditions. Its strong performance has been supported by its underlying investments, which have provided shareholders with uninterrupted cashflows and high current income, despite many periods of volatility.

However, in reaching this decision, the Board took into account a number of factors, including the prevailing discount to net asset value at which the shares have been trading, the market capitalisation and liquidity of the shares, and the Company's structure. Furthermore, it was recognised that while the Company's share price continues to trade at a discount to net asset value, it is limited in its reinvestment opportunities and ability to grow through further share issuance. The Board therefore believes that an orderly realisation of the Company's investments will be in the best interest of shareholders as a whole. 

Approval of the wind down will not result in an immediate liquidation of the Company, rather an orderly realisation of the Company's underlying assets in a manner consistent with regulatory risk retention requirements and other contractual restrictions on the liquidity of the Company's portfolio. Capital will be returned to shareholders as the Company's underlying CLOs are matured or redeemed and in a manner that seeks to maximise shareholder value. The Board intends to maintain the Company's listing during the realisation period. The Board intends to maintain its current target level of dividend until the commencement of the orderly realisation.

Accordingly, the Board intends to publish a shareholder circular by the end of September 2023 (the "Circular") to convene an extraordinary general meeting (the "EGM") at which it will seek approval from shareholders for the Managed Wind-Down and any related matters required to facilitate an orderly realisation.

The person responsible for arranging for the release of this announcement on behalf of the Company is Priya Mooroogen of BNP Paribas S.A., Jersey Branch, Company Secretary.

Enquiries:

Blackstone Loan Financing Limited                                                                                via BNP Paribas

Charlotte Valeur, Chair

BNP Paribas                                                                                                      01534 709189 / 813967

Singer Capital Markets                                                                                                  020 7496 3000

James Maxwell / Alaina Wong (Corporate Finance)

Alan Geeves / Sam Greatrex (Sales)

Winterflood Investment Trusts                                                                                     020 3100 0000

Neil Langford (Corporate Finance)

Darren Willis (Sales)

 

END