GSO Capital Partners, the credit arm of listed alternatives manager The Blackstone Group, has successfully priced an initial public offering of a new strategic credit fund.
Blackstone / GSO Strategic Credit Fund has begun trading on the New York Stock Exchange under the symbol BGB. Its IPO (of common shares) raised $834.8 million. If overallotment options are taken up by the IPO's underwriters, that amount could rise to $960 million, the firm said in a statement.
“The fund will seek high current income, with secondary objective of preservation of capital”, Blackstone said. It will invest primarily in a diversified portfolio of loans and other fixed income instruments of predominantly US corporate issuers, including first- and second-lien secured loans and high yield corporate bonds of varying maturities, the firm added.
The fund is the third publically-traded closed-end fund to be launched by Blackstone and GSO. It also manages BGX, a long-short fund which has a more aggressive strategy than the new fund, and BGL, which focuses on senior secured floating-rate loans.
Morgan Stanley, Citigroup, BofA Merrill Lynch, UBS and Wells Fargo underwrote the listing.
Dan Smith, a senior managing director at Blackstone, said in a statement: “The Blackstone / GSO Strategic Credit Fund represents the third addition to our family of closed-end funds focused on the leveraged finance asset class. GSO / Blackstone continues to be a strong believer in the long-term opportunity in below-investment grade corporate credit.”