REG - Blackstone Loan Fin - Shareholder Consultation

Blackstone Loan FinancingAnnouncement

26/01/2023 09:45

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RNS Number : 9676N  Blackstone Loan Financing Limited  26 January 2023

26 January 2023

Blackstone Loan Financing Limited

(the "Company")

Shareholder Consultation

The Board announces a shareholder consultation on potential policy amendments
in light of the prevailing and persistent discount to net asset value ("NAV")
at which the Company's shares trade and with a view to broadening investor
interest in the Company's shares and maximising shareholder total return.
Although the Company has implemented multiple share buyback programmes to
assist in managing the discount to NAV, the Board believes that greater
measures are required. The Board will therefore commence a shareholder
consultation to seek views on two potential policy amendments:

Potential Exit Opportunity

The Board is giving consideration to a potential exit opportunity for
shareholders, either as a one-off event or over regular intervals. It is
expected that should such proposal be put forward to shareholders, any exit
opportunity will be by way of the creation of a new share class, which would
return capital to holders of such shares as investments are realised over
time.

Reinvestment/Distribution of Excess Net Income

On 23 January 2023, the Company announced its target annual dividend for 2023
of between €0.08 and €0.09 per ordinary share, which will consist of
quarterly payments of €0.02 per ordinary share for the first three quarters
and a final quarter payment of a variable amount to be determined at that
time((1)).  This represents an increase over the 2022 annual target of
between €0.07 and €0.08 per ordinary share, and a dividend yield of
between 11.27% and 12.86% based on the BGLF closing price of €0.71 on 20
January 2023.

The target annual dividend is set at a level that the Board believes provides
an attractive income to shareholders, while also allowing the Company to
retain a proportion of the distributions it receives from Blackstone Corporate
Funding ("BCF") (after costs) ("Excess Net Income") for share repurchases to
manage the share price discount to NAV and re-investment.

The Board intends to consult with shareholders over the potential for a
reallocation of the Excess Net Income to allow for either or any combination
of:

·      an expansion of the existing share buyback programme;

·      a potential further increase in the quarterly and/or annual
dividend level; or

·      direct primary market CLO Income Note investments in Blackstone
managed and controlled CLOs. Such investments will be similar to those
indirectly owned by the Company through its investment via BCF.

Singer Capital Markets and Winterflood Securities, joint financial advisers
and brokers to the Company, will contact key shareholders in due course. Any
institutional shareholders not contacted by Singer Capital Markets or
Winterflood Securities wishing to participate in the shareholder consultation
are invited to contact Singer Capital Markets or Winterflood Securities.

The results of the Board's review following the shareholder consultation
process will be announced in due course.  Any proposals may be conditional on
approval by shareholders at an EGM, and further details, including the
benefits to the Company and its shareholders, and any potential related risks,
will be set out in a shareholder circular convening the EGM to be published by
the Company if appropriate.

(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.

 

 

The information contained within this announcement constitutes inside
information.

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

Enquiries:

 

 Blackstone Loan Financing Limited                 via BNP Paribas

 Charlotte Valeur, Chair

 BNP Paribas                                       01534 709178 / 813873

 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)

 

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