NEW YORK - BlackRock, Inc. (NYSE: BLK) has successfully priced a $2.5 billion multi-tranche debt offering through its subsidiary BlackRock Funding, Inc., as part of its financing strategy for the proposed acquisition of Preqin Holding Limited. The offering, which took place today, includes senior unsecured notes due in 2027, 2035, and 2055, with interest rates of 4.600%, 4.900%, and 5.350% respectively.
The $800 million notes due in 2027 are subject to a special mandatory redemption if the acquisition of Preqin does not complete, with a redemption price set at 101% of their aggregate principal amount. Should this occur, the net proceeds from the 2035 and 2055 notes, amounting to $1.7 billion, will be redirected to general corporate purposes, potentially including the repayment of existing debt.
The offering is expected to close on July 26, 2024, contingent upon customary closing conditions. Morgan Stanley (NYSE:MS) & Co. LLC, J.P. Morgan Securities LLC, BofA Securities, Inc., and Wells Fargo (NYSE:WFC) Securities, LLC served as joint book-running managers.
This financial move is part of BlackRock's broader strategy to expand its services and offerings. The acquisition of Preqin would mark a significant addition to BlackRock's portfolio, aligning with the company's mission to bolster financial well-being through investment and financial technology solutions.
Investors interested in the offering can obtain the prospectus and related preliminary prospectus supplement, which provide more detailed information about BlackRock and the offering, through the joint book-running managers.
The press release emphasizes that this announcement does not constitute an offer to sell or a solicitation of an offer to buy the securities described herein. Moreover, the sale of these securities will not be conducted in any jurisdiction where such an offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.
The information presented is based on a press release statement from BlackRock, Inc.
In other recent news, BlackRock Inc (NYSE:BLK). has seen several developments in its financial performance. The firm reported an adjusted earnings per share of $10.36 for the second quarter of 2024, a rise from $9.28 in the same quarter the previous year. The company's revenue saw an 8% increase, while assets under management experienced a 13% surge, reaching $10.6 trillion.
BlackRock also reported substantial long-term net inflows amounting to $51 billion during the second quarter. Additionally, the successful launch of its bitcoin ETF in the first quarter of 2024, which now encompasses $20 billion of net assets, was a significant development for the company.
Argus, Citi, and Evercore ISI have all raised their share target for BlackRock, citing confidence in the company's growth prospects. This follows BlackRock's report of a record high of $10.65 trillion in assets under management for Q2, driven by increased investor interest in exchange-traded funds.
The company's acquisition of data provider Preqin for nearly $3.2 billion was reaffirmed, seen as a strategic move to deepen BlackRock's presence in the private markets and enhance its capabilities in alternative investments. These are among the recent developments that have shaped BlackRock's current market position.
InvestingPro Insights
As BlackRock, Inc. (NYSE: BLK) ventures into a strategic acquisition with the pricing of its multi-tranche debt offering, it's worth considering the company's financial health and market position. According to recent data, BlackRock's market capitalization stands at a robust $124.76 billion, reflecting its significant presence in the investment management industry. The company's P/E ratio, a key metric for investors, is currently at 20.68, which could suggest that the stock is valued fairly in relation to its earnings.
With respect to its dividend policy, BlackRock has a commendable track record, having raised its dividend for 14 consecutive years and maintained dividend payments for 22 consecutive years. This consistency is a positive signal for investors seeking stable income streams. Additionally, BlackRock is trading near its 52-week high, indicating strong market confidence in the stock.
For those looking to delve deeper into BlackRock's performance and outlook, there are additional InvestingPro Tips available, including analyses on earnings revisions and stock valuation metrics. For instance, some analysts have revised their earnings estimates downwards for the upcoming period, which could be a factor to watch closely. Moreover, the stock's Relative Strength Index (RSI) suggests it may be in overbought territory, hinting at potential price corrections ahead.
Investors considering BlackRock's debt offering or equity as part of their portfolio can explore these insights and more on InvestingPro. There are currently 8 additional tips listed, providing a comprehensive view of the company's financial health and market expectations. To gain full access to these tips and more in-depth analysis, use the exclusive coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
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