Published on 3/5/2024 in the Prospect News Investment Grade Daily.
New Issue: BlackRock sells $3 billion of notes due 2029, 2034 and 2054
By Wendy Van Sickle
Columbus, Ohio, March 5 – BlackRock Funding, Inc. priced $3 billion of notes (Aa3/AA-) in three parts with maturities in 2029, 2034 and 2054 on Tuesday, according to an FWP filing with the Securities and Exchange Commission.
The company priced $500 million of 4.7% five-year notes at 99.819 to yield 4.741%, or Treasuries plus 60 basis points
The issuer priced $1 billion of 5% 10-year notes at 99.844 to yield 5.02%, or Treasuries plus 87.5 bps.
Finally, BlackRock sold $1.5 billion of 5.25% 30-year notes at 98.794 to yield 5.331%, or a spread over Treasuries of 105 bps.
BlackRock, Inc. will guarantee the notes.
Morgan Stanley & Co. LLC, BofA Securities, Inc., Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Barclays, Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC, HSBC Securities (USA) Inc. and Wells Fargo Securities, LLC were the bookrunners.
Proceeds will be used to fund a portion of the acquisition of Global Infrastructure Management, LLC. BlackRock plans to fund the cash consideration with $3 billion of total debt.
The notes due 2029 and 2034 will be subject to a special mandatory redemption at 101 if the acquisition is not consummated by the redemption end date, Jan. 12, 2025.
The investment management firm is based in New York. The issuer is a newly formed subsidiary created in connection with the acquisition.
| Issuer: | BlackRock Funding, Inc.
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| Guarantor: | BlackRock Inc.
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| Amount: | $3 billion
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| Issue: | Notes
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| Bookrunners: | Morgan Stanley & Co. LLC, BofA Securities, Inc., Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Barclays, Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC, HSBC Securities (USA) Inc. and Wells Fargo Securities, LLC
|
| Co-managers: | BNP Paribas Securities Corp., Credit Agricole Securities (USA) Inc., ICBC Standard Bank plc, Loop Capital Markets LLC, Mischler Financial Group, Inc., Mizuho Securities USA LLC, RBC Capital Markets, LLC, SG Americas Securities, LLC, Santander US Capital Markets LLC, Academy Securities, Inc., Cabrera Capital Markets LLC, CastleOak Securities, LP, R. Seelaus & Co., LLC, Samuel A. Ramirez & Co., Inc. and Siebert Williams Shank & Co., LLC
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| Trustee: | Bank of New York Mellon
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| Counsel to issuer: | Skadden, Arps, Slate, Meagher & Flom LLP
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| Counsel to underwriters: | Cleary Gottlieb Steen & Hamilton LLP
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| Trade date: | March 5
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| Settlement date: | March 14
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| Ratings: | Moody’s: Aa3
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| S&P: AA-
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| Distribution: | SEC registered
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|
|
| Five-year notes
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| Amount: | $500 million
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| Maturity: | March 14, 2029
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| Coupon: | 4.7%
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| Price: | 99.819
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| Yield: | 4.741%
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| Spread: | Treasuries plus 60 bps
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| Call features: | Make-whole call before Feb. 14, 2029 at Treasuries plus 10 bps; thereafter at par
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| Cusip: | 09290DAA9
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|
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| 10-year notes
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| Amount: | $1 billion
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| Maturity: | March 14, 2034
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| Coupon: | 5%
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| Price: | 99.844
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| Yield: | 5.02%
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| Spread: | Treasuries plus 87.5 bps
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| Call features: | Make-whole call before Dec. 14, 2033 at Treasuries plus 15 bps; thereafter at par
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| Cusip: | 09290DAB7
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|
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| 30-year notes
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| Amount: | $1.5 billion
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| Maturity: | March 14, 2054
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| Coupon: | 5.25%
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| Price: | 98.794
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| Yield: | 5.331%
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| Spread: | Treasuries plus 105 bps
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| Call features: | Make-whole call before Sept. 14, 2053 at Treasuries plus 20 bps; thereafter at par
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| Cusip: | 09290DAC5
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