NEW YORK--(BUSINESS WIRE)--Blackstone/GSO Senior Floating Rate Term Fund (the “Fund”) (NYSE: BSL) announces that the Board of Trustees has approved the Fund’s plan to prepay all $96,000,000 aggregate principal amount outstanding of its Senior Secured Notes (the “Notes”) and to redeem all $48,000,000 aggregate liquidation preference of its outstanding Term Preferred Shares (the “Preferred Shares”). The Notes and Preferred Shares will be prepaid or redeemed, as applicable, at 100% of the principal amount or liquidation preference, as applicable, plus an additional amount representing the final accumulated interest or dividend amounts owed through the prepayment and redemption date, October 8, 2014. The Fund intends to finance the prepayment of its Notes and redemption of its Preferred Shares with borrowings under a new 364-day revolving credit facility, which will have available borrowings up to $142 million, to be provided by a large, reputable financial institution, and with cash on hand.
This refinancing plan will modestly reduce the Fund’s leverage but significantly reduce the Fund’s cost of borrowing, resulting in a reduction of the Fund’s total expense ratio. The accelerated amortization of the deferred financing cost (a non-cash expense) associated with the original issuance of the Notes and Preferred Shares will result in an $0.08 per share reduction of the Fund’s NAV as calculated on October 8, 2014. However, the cost savings associated with the reduced cost of borrowing are expected to offset this one-time expense.
The securities to be prepaid and redeemed are as follows:
Securities to be Prepaid and Redeemed/CUSIP:
Series A Floating Rate Senior Secured Notes
due 2020 / 09256UAA3
Series A Floating Rate Cumulative Term Preferred Shares
due 2020 / 09256U204
The new credit facility summary terms will be as follows:
|New Credit Facility:||
|364-day Revolving Credit Facility||$142,000,000||
1-week or 1, 2, 3,
Blackstone/GSO Senior Floating Rate Term Fund
The Fund is a diversified, closed-end management investment company that is managed by GSO/Blackstone Debt Funds Management LLC, an affiliate of The Blackstone Group L.P. (“Blackstone”) and subsidiary of GSO Capital Partners LP (“GSO”). The Fund’s primary objective is to seek high current income with a secondary objective to seek preservation of capital, consistent with its primary goal of high current income. There can be no assurance the Fund will achieve its investment objectives. Additional information is available at www.blackstone-gso.com/bsl-index.php.
About The Blackstone Group and GSO Capital Partners
Blackstone is one of the world’s leading investment and advisory firms. We seek to create positive economic impact and long-term value for our investors, the companies we invest in, the companies we advise and the broader global economy. We do this through the commitment of our extraordinary people and flexible capital. Our credit business, GSO, with approximately $69.5 billion of assets under management as of June 30, 2014, is one of the largest credit-oriented alternative asset managers in the world and a major participant in leveraged finance. GSO specializes in collateralized loan obligation vehicles (CLOs) and credit-oriented funds, which include leveraged loans, special situations, mezzanine, distressed, secondary market and rescue financing credit strategies. Our other alternative asset management businesses include the management of private equity funds, real estate funds, hedge fund solutions and closed-end funds. Blackstone also provides various financial advisory services, including financial and strategic advisory, restructuring and reorganization advisory and fund placement services.
Further information is available at www.blackstone.com. Follow us on Twitter @Blackstone.
Blackstone/GSO Senior Floating Rate Term Fund is a closed-end fund and closed-end funds do not continuously issue shares for sale as open-end mutual funds do. Since its initial public offering, the Fund has traded on the New York Stock Exchange under the symbol BSL. Investors wishing to buy or sell shares need to place orders through an intermediary or broker.
Contact the Fund at 1-877-299-1588 or visit the Fund’s website at www.blackstone-gso.com/bsl-index.php for additional information.