Blackstone Private Credit Fund’s board has unanimously recommended that shareholders reject an unsolicited tender offer from Cox Capital Retail Secondaries Fund I and its affiliates.
Cox Capital offered to purchase Class I shares for $20.65 each, representing a 12.5% discount to BCRED’s August 31 NAV of $23.60 per share. The offer is limited to an aggregate purchase price of $20 million, which BCRED described as a de minimis percentage of its outstanding shares.
The board said the offer substantially undervalues the shares. It also cautioned that Cox Capital could acquire shares below NAV and subsequently seek to have them repurchased through BCRED’s quarterly program at NAV, allowing Cox Capital and its investors to capture the economic benefit of the discount.
BCRED contrasted the outside offer with its established repurchase program. The fund estimated that shareholders seeking liquidity in both the second and third quarters will have received approximately 75% of their requested capital at NAV within about 90 days, assuming they retendered all unfulfilled shares and subject to final processing.
As of August 31, BCRED reported a 9% annualized Class I total net return since inception and a 9.2% annualized distribution rate. Its portfolio was diversified across more than 600 borrowers and focused primarily on privately originated senior-secured loans. BCRED and its adviser are not affiliated with Cox Capital. Blackstone Private Credit Fund
