Blackstone lines up $200 million loan to refinance ASK credit line

Mumbai: Blackstone, the world's largest alternative asset manager, is arranging a $200 million loan to refinance a sponsor-financing facility raised in 2022 for its acquisition of a majority stake in Mumbai-based asset and wealth management company ASK Investment Managers. The existing loan is due to mature in 2027.

The five-year refinancing facility has been launched into co-syndication. Initial pricing discussions indicate an all-in yield of about 300 basis points over the secured overnight financing rate (SOFR), taking the cost to about 7%, according to people familiar with the transaction. A basis point is a hundredth of a percentage point.

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Four banks-Cathay United Bank, First Abu Dhabi Bank (FAB), Mizuho, Standard Chartered and Mizuho-are leading the transaction. Blackstone acquired a majority stake in ASK Investment Managers from Advent International and other shareholders in February 2022. The proposed loan will refinance the sponsor-financing facility raised in connection with the transaction, ahead of its scheduled maturity next year, two people said.

Spokespersons for Blackstone, Cathay United Bank and Mizuho did not respond to ET's queries, while First Abu Dhabi Bank and Standard Chartered Bank declined to comment.

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"The transaction is currently being syndicated among lenders, with the final terms and participation expected to be determined through the process," said one of the persons cited earlier, who did not wish to be identified, adding that the transaction has been launched into co-syndication among international lenders.

The refinancing comes as private equity investors look to manage acquisition-related debt maturities and extend funding tenors through syndicated loan markets.

The facility is expected to have a five-year tenor, with the final pricing and lender commitments to be determined through the syndication process.

ASK Investment Managers caters to clients across Asia, West Asia, Africa and Europe, and managed more than ₹85,000 crore in assets under management as of July.

In February, ASK Asset & Wealth Management Group received regulatory approval from the Securities and Exchange Board of India to start operations as an investment manager for the mutual fund business in the country.