A unit of BlackRock Inc. is selling $2.5 billion of US investment-grade bonds on Wednesday to help fund a portion of the firm’s $3.2 billion acquisition of private-markets data business Preqin.
BlackRock Funding Inc. is selling notes in three parts, according to a person familiar with the matter. The longest portion of the deal matures in 30 years and will yield one percentage point above Treasuries, the person said, asking not to be identified as the details are private, after initial talks in the area of 1.25 percentage points.
A spokesperson for BlackRock declined to comment.
The bond sale comes less than a month after the world’s largest money manager agreed to acquire London-based Preqin, expanding its reach within the fast-growing world of private markets investing. It would be the second such major acquisition for BlackRock this year, after announcing in January that it agreed to buy Global Infrastructure Partners for about $12.5 billion.
The Preqin acquisition is expected to close by the end of this year. Bank of America Corp., JPMorgan Chase & Co., Morgan Stanley and Wells Fargo & Co. are leading the bond sale.
The three-year portion of the offering comes with a so-called special mandatory redemption clause, meaning if the acquisition fails to close by Sept. 2, 2025, BlackRock will buy back the notes at 101%.
Earlier this month, Moody’s Corp. lowered its outlook on BlackRock to negative from stable due to concerns over the firm’s increased debt and leverage ratios as a result of its GIP and Preqin acquisitions.
Goldman Sachs retirement survey finds 83% want guaranteed income, while the annuities providing that income increasingly hold private credit.
The AI meeting assistant's Advisor Intelligence plugin turns client conversation data into annual reviews, tax scans and attrition alerts.
Chuck Roberts and Stifel have been facing scrutiny due to sales of structured products and structured notes.
Among other updates, the proposals would let advisors to regulated funds earn performance fees and allow interval funds to offer monthly repurchases.
What will financial advice look like 20 years from now? Evan Vladem explores how AI may transform wealth management while reinforcing the enduring value of human guidance, trust, and empathy.
As AI makes financial information more accessible than ever, Lana Hock explains why human judgment, trust, and empathy remain the qualities clients value most in a financial advisor
Northern Trust’s Ken Lassner shows advisors how to convert volatility into after-tax portfolio gains
