REG - Blackstone Loan Fin - Dividend Declaration and Dividend Policy

BlackstoneAnnouncement

24/01/2022 08:05

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RNS Number : 2924Z  Blackstone Loan Financing Limited  24 January 2022

Blackstone Loan Financing Limited

 

24 January 2022

Dividend Declaration and Dividend Policy

 

 

NOT FOR RELEASE, DISTRIBUTION OR PUBLICATION, DIRECTLY OR INDIRECTLY, TO U.S.
PERSONS OR INTO OR IN THE UNITED STATES, AUSTRALIA, CANADA OR JAPAN.

 

 

Blackstone Loan Financing Limited ("BGLF" or the "Company")

 

Dividend Declaration

The Board of Directors of the Company are pleased to declare a dividend in
respect of the period from 1 October 2021 to 31 December 2021 of €0.0275 per
ordinary share. This quarterly payment is at the top end of the guidance set
out in the Dividend Policy announced on 22 January 2021 and equates to an
aggregate payment of €0.08 per share for the 2021 financial year,
representing a dividend yield of 10.13% based on the BGLF closing price of
€0.79 on 21 January 2022. The dividend will be payable to the Company's
shareholders of record as detailed below:

 

 Dividend:                      €0.0275 per ordinary share
 Ex-Dividend Date:              3 February 2022
 Record Date:                   4 February 2022
 Final Currency Election Date:  11 February 2022
 Payment Date:                  4 March 2022

 

The dividend is capable of being paid in Pound Sterling, rather than Euros,
provided that the relevant shareholder has registered to receive their
dividend in Pound Sterling by the above-referenced Final Currency Election
Date.

 

A copy of the Dividend Currency Election form, which should be sent to Link
Group, 10th Floor, Central Square, 29 Wellington Street, Leeds, LS1 4DL when
completed, can be found on the Company's website at http://blackstone.com/bglf
(http://blackstone.com/bglf) .  The Dividend Currency Election Form should
only be completed by shareholders who hold shares in certificated form.

 

CREST shareholders must elect via CREST.

 

Full details of how to elect are set out in the Terms and Conditions which are
included on the Company's website.

 

Dividend Policy

 

The Company's dividends are funded from the cash flows generated by the
Company's underlying CLO portfolio.

The Board considers three strategic priorities when allocating these cash
flows:

 

·      Paying a sustainable dividend sufficiently covered by cash
generated, that does not erode the capital of the Company over time;

·      Providing funds to implement the Board's share buyback policy;
and

·      Reinvesting surplus cash proceeds in order to grow the Company's
Net Asset Value over time.

 

The Board has agreed a framework with Blackstone Credit that first of all
considers both realised and forward-looking expectations of underlying cash
flows to derive a target range for the dividend for the coming year, then
considers the level of the Company's share price discount to Net Asset Value
per share in order to allocate a budget for share buybacks. Surplus cash
generated in excess of these requirements is reinvested.

 

Consequently, the Board is pleased to announce that it is targeting a total
2022 annual dividend of between €0.07 and €0.08 per ordinary share, which
will consist of quarterly payments of €0.0175 per ordinary share for the
first three quarters and a final quarter payment of a variable amount to be
determined at that time.((1)) The 2022 total target dividend represents a
dividend yield of between 8.86% and 10.13% based on the BGLF closing price of
€0.79 on 21 January 2022.

 

(1)   The target dividend set out in this announcement is a target only and
not a profit forecast. It should not be taken as an indication of the
Company's expected future performance or results. There is no guarantee that
the target dividend set out in this announcement can or will be achieved or
can be continued if achieved. There may be other additional risks,
uncertainties and factors that could cause the returns generated by the
Company to be materially lower than the target dividend set out in this
announcement. Accordingly, investors should not place any reliance on such
target.

 

NOTE: PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE PERFORMANCE
RESULTS AND THERE CAN BE NO ASSURANCE THAT BGLF WILL ACHIEVE COMPARABLE
RESULTS.

 

IMPORTANT INFORMATION

Any reference herein to future returns or distributions is a target and not a
forecast and there can be no guarantee or assurance that it will be achieved.

This document has been issued by Blackstone Loan Financing Limited (the
"Company"), and should not be taken as an offer, invitation or inducement to
engage in any investment activity and is solely for the purpose of providing
information about the Company. This document does not constitute or form part
of, and should not be construed as, any offer for sale or subscription of, or
solicitation of any offer to buy or subscribe for, any share in the Company or
securities in any other entity, in any jurisdiction, including the United
States, Canada, Japan or South Africa nor shall it, or any part of it, or the
fact of its distribution, form the basis of, or be relied on in connection
with, any contract or investment decision whatsoever, in any jurisdiction.

This document, and the information contained therein, is not for viewing,
release, distribution or publication in or into the United States, Canada,
Japan, South Africa or any other jurisdiction where applicable laws prohibit
its release, distribution or publication, and will not be made available to
any national, resident or citizen of the United States, Canada, Japan or South
Africa. The distribution of this document in other jurisdictions may be
restricted by law and persons into whose possession this document comes must
inform themselves about, and observe, any such restrictions. Any failure to
comply with the restrictions may constitute a violation of the federal
securities law of the United States and the laws of other jurisdictions.

The Company has not been and will not be registered under the US Investment
Company Act of 1940, as amended (the "Investment Company Act") and, as such,
holders of the Shares will not be entitled to the benefits of the Investment
Company Act.  The shares issued by the Company (the "Shares") have not been
and will not be registered under the US Securities Act of 1933, as amended
(the "Securities Act"), or with any securities regulatory authority of any
state or other jurisdiction of the United States. The Shares may not be
offered, sold, resold, pledged, taken up, exercised, renounced, delivered,
distributed or otherwise transferred, directly or indirectly, into or within
the United States, or to, or for the account or benefit of, US persons (as
defined in Regulation S under the Securities Act) except pursuant to an
exemption from, or in a transaction not subject to, the registration
requirements of the Securities Act and in compliance with any applicable
securities laws of any state or other jurisdiction of the United States and in
a manner which would not require the Company to register under the Investment
Company Act. No public offering of the Shares is being made in the United
States.

In addition, the Shares are subject to restrictions on transferability and
resale in certain jurisdictions and may not be transferred or resold except as
permitted under applicable securities laws and regulations. Investors may be
required to bear the financial risks of their investment in the Shares for an
indefinite period of time. Any failure to comply with these restrictions may
constitute a violation of the securities laws of any such jurisdictions.

 

This document may contain forward-looking statements that represent the
Company's opinions, expectations, beliefs, intentions, estimates or
projections. These forward-looking statements can be identified by the use of
forward-looking terminology, including the terms "believes", "estimates",
"anticipates", "expects", "intends", "may", "will" or "should" or, in each
case, their negative or other variations or comparable terminology. Any
statement other than a statement of historical fact is a forward-looking
statement. By their nature, forward-looking statements involve known and
unknown risks, uncertainties, assumptions and other factors because they
relate to events and depend on circumstances that will occur in the future
whether or not outside the control of the Company. Actual results may differ
materially from those expressed or implied by any forward-looking statement
and even if the results of the Company are consistent with such
forward-looking statement, those results may not be indicative of results in
subsequent periods. The Company does not undertake any obligation to update or
revise any forward-looking statements, whether as a result of new information,
future events, or otherwise. Recipients of this document should not place
undue reliance on any forward-looking statement, which speaks only as of the
date of its issuance.

No liability whatsoever (whether in negligence or otherwise) arising directly
or indirectly from the use of this document is accepted and no representation,
warranty or undertaking, express or implied, is or will be made by the
Company, or any of its directors, officers, employees, advisers,
representatives or other agents ("Agents") for any information or any of the
opinions contained herein or for any errors, omissions or misstatements. None
of the Agents makes or has been authorised to make any representation or
warranties (express or implied) in relation to the Company or as to the truth,
accuracy or completeness of this document, or any other written or oral
statement provided. In particular, no representation or warranty is given as
to the achievement or reasonableness of, and no reliance should be placed on
any projections, targets, estimates or forecasts contained in this document
and nothing in this document is or should be relied on as a promise or
representation as to the future.

Unless otherwise indicated, the information provided herein is based on
matters as they exist as of the date of preparation and not as of any future
date. Recipients of this document are encouraged to contact the Company's
representatives to discuss the procedures and methodologies used to make the
projections and other information provided herein.

All investments are subject to risk, including the loss of the principal
amount invested. Past performance is not necessarily indicative of future
results, and there can be no assurance that BGLF will achieve comparable
results, will meet its target returns, achieve its investment objectives or be
able to implement its investment strategy. Certain countries have been
susceptible to epidemics, most recently COVID-19, which may be designated as
pandemics by world health authorities. The outbreak of such epidemics,
together with any resulting restrictions on travel or quarantines imposed, has
had and will continue to have a negative impact on the economy and business
activity globally (including in the countries in which the Company invests),
and thereby is expected to adversely affect the performance of the Company's
Investments. Furthermore, the rapid development of epidemics could preclude
prediction as to their ultimate adverse impact on economic and market
conditions, and, as a result, presents material uncertainty and risk with
respect to the Company and the performance of its Investments.  All
investments to be held by the Company involve a substantial degree of risk,
including the risk of total loss. The value of shares and the income from them
is not guaranteed and can fall as well as rise due to stock market and
currency movements.  When you sell your investment you may get back less than
you originally invested. You should always seek expert legal, financial, tax
and other professional advice before making any investment decision.

Blackstone Loan Financing Limited is a self-managed Jersey registered
alternative investment fund, and is regulated by the Jersey Financial Services
Commission as a 'listed fund' under the Collective Investment Funds (Jersey)
Law 1988 (the "Funds Law") and the Jersey Listed Fund Guide published by the
Jersey Financial Services Commission. The Jersey Financial Services Commission
is protected by the Funds Law against liability arising from the discharge of
its functions thereunder.  The Jersey Financial Services Commission has
neither reviewed nor approved of the issue of this document.

 

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