Blackstone's Credit Fund Pays Its Steepest Bond Premium Since 2021

SelfRugger · 2026-04-07T18:36:50+00:00

Blackstone's Secured Lending Fund is offering a new 2029 bond at a premium of 225 basis points over Treasuries, the highest since 2021, due to declining demand influenced by concerns over software company valuations amid AI impacts.

SelfRugger

2026-04-07 18:36:50

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Blackstone’s Credit Fund Pays Its Steepest Bond Premium Since 2021

Renato Neves, CFA

Fri, February 27, 2026 at 3:57 AM GMT+9 1 min read

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BXSL

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This article first appeared on GuruFocus.

Blackstone Secured Lending Fund (NYSE:BXSL) is marketing a new benchmark-sized 2029 note at an initial price talk of approximately 225 basis points over Treasuries, according to a person familiar with the matter, the widest spread the fund has offered since its debut bond in 2021.

By comparison, two prior $500 million five-year deals in February and October 2025 were both priced at around 175 basis points over Treasuries, meaning the fund is paying up 50 basis points more to attract sufficient demand this time. Brad Marshall, global head of private credit strategies, said Wednesday that the firm has marked down a loan to Medallia to approximately 78 cents on the dollar, from 87 cents as recently as last June.

The offering comes amid a broader deterioration in sentiment toward private credit’s exposure to software companies. Concerns about the impact of artificial intelligence on software company cash flows have shaken the $1.8 trillion private credit industry in recent weeks.

Blackstone Secured Lending Fund shares were down 2.60% in intraday trading.

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