Use of Leverage. May Reduce The Partnership's Profitability Or Cause Losses Through Liquidation. The Partnership may borrow funds for the purpose of making Mortgage Investments or for any other proper partnership purpose on any terms commercially available and may assign all or a portion of its Mortgage Investment portfolio as security for such loans. The maximum aggregate indebtedness which may be incurred by the Partnership is fifty percent (50%) of the value of the Mortgage Investment portfolio. The Partnership has obtained from a commercial bank a line of credit in the amount of $3,000,000. As of June 30, 1996 the Partnership has borrowed $2,892,000 which represents 20.37% of the outstanding principal balance of the Mortgage Investment portfolio. The General Partners anticipate engaging in such borrowing when the interest rate at which the Partnership can borrow funds is somewhat less than the rate that can be earned by the Partnership on its Mortgage Investments (See "INVESTMENT OBJECTIVES AND CRITERIA - Borrowing"). Interest rate fluctuations may have a particularly adverse effect on the Partnership if it is using such borrowed money to fund Mortgage Investments. Such borrowed money will bear interest at a variable rate, whereas the Partnership may be making fixed rate loans. Therefore, if prevailing interest rates rise, the Partnership's cost of money could exceed the income earned from that money, thus reducing the Partnership's profitability or causing losses through liquidation of Mortgage Investments in order to repay the debt on the borrowed money or default if the Partnership cannot cover the debt on the borrowed money.
Use of Leverage. May Reduce The Partnership's Profitability Or Cause Losses Through Liquidation......................................................... 13 Fluctuations In Interest Rates May Effect Return On Investment.............. 13
Use of Leverage. As provided in the 1940 Act and subject to certain exceptions, the Fund may issue debt with the condition that immediately after issuance the value of its total assets, less certain ordinary course liabilities, exceeds 300% of the amount of the debt outstanding. Thus, as noted above, the Fund may use leverage in the form of borrowings in an amount up to 33 1/3% of the Fund’s total assets (including the proceeds of such leverage). The total leverage of the Fund is currently expected to range between 25% and 32% of the Fund’s total assets. The Fund seeks a leverage ratio, based on a variety of factors including market conditions and the Investment Adviser’s market outlook, for which the rate of return, net of applicable Fund expenses, on the Fund’s investment portfolio investments purchased with leverage exceeds the costs associated with such leverage. The Fund does not currently intend to issue or register preferred shares or commercial paper. At April 30, 2013, the Fund had loans outstanding under the Fund’s Credit Agreement with State Street of $107,000,000. During the six months ended April 30, 2013, the Fund had borrowings under the Credit Agreement as follows: Average Daily Loan Balance Weighted Average Interest Rate% Maximum Daily Loan Outstanding $107,243,094 1.092% $116,000,000 The Fund’s borrowings under its credit facility at April 30, 2013 equaled approximately 26% of the Fund’s total assets (including the proceeds of such leverage). The Fund’s asset coverage ratio as of April 30, 2013 was 388%. See “Risks and Special Considerations—Leverage Risk” for a brief description of the Fund’s Credit Agreement with State Street. Assuming the utilization of leverage in the amount of 26% of the Fund’s total assets and an annual interest rate of 1.092% payable on such leverage based on market rates as of the date of this prospectus, the additional income that the Fund must earn (net of expenses) in order to cover such leverage is approximately $1,266,720. Actual costs of leverage may be higher or lower than that assumed in the previous example. Following the completion of an offering, the Fund may increase the amount of leverage outstanding. The Fund may engage in additional borrowings in order to maintain the Fund’s desired leverage ratio. Leverage creates a greater risk of loss, as well as a potential for more gain, for the common shares than if leverage were not used. Interest on borrowings may be at a fixed or floating rate and generally will be based on...
Use of Leverage. Leverage is an integral part of the investment strategy of certain types of nontraditional investment funds. Leverage should be viewed as an overlay used to optimise the tradeoff between risk and return. Hence leverage is mainly associated with those styles that have relatively low exposure to market or duration risk, principally involv- ing the use of arbitrage techniques. Leverage cannot be viewed in isolation, but has to be considered in conjunction with all the risks inherent in a transaction. Consequently, in relatively higher risk styles such as “emerging markets” where there is less opportunity to lay off risk through the futures markets or short selling, leverage, if used, is normally used sparingly. Xxxxxxxx therefore has to be evaluated relative to the investment style and the steps that a manager is taking to lay off various risks. Excessive leverage relative to the investment style should be avoided. Overall, the leverage of a fund has to be tightly monitored because of the influence it has on the rapidity with which changes in market, credit and liquidity risk can feed through to the value of a fund.
Use of Leverage. The amount of leverage we use in any period depends on a variety of factors, including cash available for investing, the cost of financing and general economic and market conditions. Generally, pursuant to the 1940 Act, our total borrowings are limited so that we cannot incur additional borrowings if immediately after such borrowing, the ratio of our total assets (less total liabilities other than indebtedness represented by senior securities) to our total indebtedness represented by senior securities plus preferred shares, if any, is at or above 150%. This means that generally, a BDC can borrow up to $2 for every $1 of investor equity. In any period, our interest expense will depend largely on the extent of our borrowing and we expect interest expense will increase as we increase our leverage over time subject to the limits of the 1940 Act. In addition, we may dedicate assets to financing facilities. Corporate Information Our principal executive offices are located at 000 Xxxx Xxxxxx, 00xx xxxxx, Xxx Xxxx, XX 00000 and our telephone number is (000) 000-0000. Our corporate website is located at xxx.xxxx.xxx. Information on our website is not incorporated into or a part of this prospectus. THE OFFERING Issuer Blackstone Secured Lending Fund Common shares offered by us Common shares having an aggregate maximum offering price of up to $500.0 million. We may from time to time increase or decrease the size of this “at the market” offering. If we do so, it will be pursuant to a new prospectus supplement or supplement to this prospectus supplement. Common shares outstanding prior to this offering 191,874,419 common shares outstanding as of March 18, 2024. Manner of offering “At the market offering” that may be made from time to time through Truist Securities, Inc., RBC Capital Markets, LLC, Compass Point Research & Trading, LLC, Xxxxxxx Xxxxx & Associates, Inc., BTIG, LLC and Xxxxxx Xxxxxxxx, LLC, as sales agents, using commercially reasonable efforts. See “Plan of Distribution” in this prospectus supplement. Use of proceeds We intend to use the net proceeds from this offering for general corporate purposes, which may include, among other things, investing in accordance with our investment objectives and strategies described in this prospectus supplement and the accompanying prospectus and repaying indebtedness (which will be subject to reborrowing). See “Use of Proceeds” in this prospectus supplement. Distributions We intend to make quarterly distributions to ou...
Use of Leverage. (a) The Partnership may borrow money from any Person, make guarantees to any Person or incur any other obligation in connection with the Partnership’s investment activities, or the activities of any Person in which the Partnership acquires, directly or indirectly, or proposes to acquire, an Investment (or to any subsidiary thereof), for any purpose including, without limitation, to make, hold or dispose of any Investment, provide permanent financing or refinancing, provide cash collateral to secure outstanding letters of credit or provide interim financing to the extent necessary to consummate the acquisition of Investments prior to the completion of permanent debt financing therefor or prior to the receipt of Funded Contributions. Except to the extent otherwise limited in the Confidential Memorandum, the amount of leverage used from time to time will be determined by the General Partner in its sole discretion. The General Partner, on behalf of the Partnership, may pledge to a lender Investments or the Unfunded Commitments of Limited Partners as security for any borrowing.
Use of Leverage. . . . . . . . . . The Fund may implement various temporary “defensive” strategies at times when Credit Suisse determines that conditions in the markets make pursuing the Fund’s basic investment strategy inconsistent with the best interests of shareholders. These strategies may include investing less than 80% of its total assets in lower grade income securities by investing in higher quality debt and/or money market instruments. See “Investment Policies.” The Fund invests primarily in bonds, debentures, notes, senior loans, other debt instruments, convertible bonds and preferred stocks. The Fund’s portfolio securities may have fixed or variable rates of interest and may include zero coupon securities, payment-in-kind securities or other deferred payment securities, preferred stock, convertible debt obligations and convertible preferred stock, units consisting of debt or preferred stock with warrants or other equity features, secured floating rate loans and loan participations, government securities, stripped securities, commercial paper and other short-term debt obligations. The issuers of the Fund’s portfolio securities may include domestic and foreign corporations, partnerships, trusts or similar entities, and governmental entities or their political subdivisions, agencies or instrumentalities. The Fund may invest in companies in, or governments of, developing countries. In connection with its investments in corporate debt securities, or restructuring of investments owned by the Fund, the Fund may receive warrants or other non-income producing equity securities. The Fund may retain such securities, including equity shares received upon conversion of convertible securities, until Credit Suisse determines it is appropriate in light of current market conditions to dispose of such securities. The Fund has certain investment restrictions that may not be changed without approval by a majority of the Fund’s outstanding voting securities. These restrictions concern issuance of senior securities, borrowing, lending, concentration, diversification and other matters. See “Investment Restrictions.” As provided in the Investment Company Act of 1940, as amended (the “1940 Act”), and subject to certain exceptions, the Fund may issue debt with the condition that immediately after issuance the value of its total assets, less ordinary course liabilities, exceeds 300% of the amount of the debt outstanding. Thus, as noted above, the Fund may use leverage in the form of borro...
Use of Leverage. Leverage is not allowed for Retail Clients. Leverage shall not be used in the Balanced Strategy. Leverage is allowed for Non-retail Clients (i.e. Professional Clients and Eligible Counterparties). Leverage will be used in the Capital Growth Strategy and the Speculative Strategy. Where leverage is permitted in the strategy, the Investment Manager is fully authorized and granted powers by the Client to invest in financial products and/or instruments in its sole discretion and with use of leverage of up to 1 : 3 of total value of Client’s Portfolio. The use of leverage may be applied to an individual financial product and/or instrument as well as to the whole value of Client’s Portfolio. Where leverage is permitted in the strategy, the Client hereby acknowledges and confirms his/her understanding that any investments made by the Investment Manager for the Client in the above-mentioned financial products and/or instruments carry an investment risk and may result in potential losses. The risk disclosures are extensively provided in the Portfolio Management Agreement and in the Risk Disclosure Statement which forms an integral part thereof. Any projections as to potential losses are estimates only and may not be realized in the future. Likewise, any information on past performance, where given, is not necessarily a guide to future performance.
Use of Leverage. The Fund may borrow money and/or issue Preferred Shares, notes or debt securities for investment purposes. These practices are known as leveraging. The Adviser determines whether or not to engage in leverage based on its assessment of conditions in the debt and credit markets. On December 16, 2016, the Fund entered into a $75,000,000 secured, revolving, evergreen credit facility with U.S. Bank National Association (the “USB Facility”). The borrowing rate under the USB Facility is equal to one-month LIBOR plus 0.95%. The average principal balance and interest rate for the fiscal year ended June 30, 2021 was approximately $38,205,479 and 1.13%, respectively. As of June 30, 2021, the principal amount of borrowings under the USB Facility was $21,000,000, representing approximately 6.87% of the Fund’s Managed Assets. As of June 30, 2021, total annual interest rate, including the commitment fee rate, was 1.14% of the principal amount outstanding or 0.21% of the Fund’s net assets attributable to Common Shares. As of June 30, 2021, the Fund had $54,000,000 in unutilized funds available for borrowing under the USB Facility. In addition, as of June 30, 2021, the Fund had outstanding 2,400,000 shares of 4.375% Series A Preferred Stock. As of the same date, the average liquidation preference since the issuance of such Series A Preferred Stock was approximately $25.00. The Series A Preferred Stock ranks senior in right of payment to the Common Shares and is subordinated in right of payment to borrowings under the USB Facility. As of June 30, 2021, the Fund’s leverage from borrowings and its issuance of Series A Preferred Stock was approximately 25% of its Managed Assets. The Fund’s Common Shares are junior in liquidation and distribution rights to amounts owed pursuant to the USB Facility. See “Summary of Fund Expenses” and “Use of Leverage—Effects of Leverage.” The Fund currently anticipates that it could also obtain leverage through the use of reverse repurchase agreements. Pursuant to the provisions of the 1940 Act, the Fund may borrow or issue notes or debt securities in an amount up to 33 1/3% of its total assets and may issue Preferred Shares in an amount up to 50% of its total assets (including the proceeds from leverage). The Underlying Funds that the Fund invests in may also use leverage. Notwithstanding the limits discussed above, the Fund may enter into derivatives or other transactions (e.g., reverse repurchase agreements and total return swaps) that may pr...
Use of Leverage. The Fund may obtain leverage through reverse repurchase agreements, dollar rolls or borrowings, such as through bank loans or commercial paper or other credit facilities. The Fund may also enter into transactions other than those noted above that may give rise to a form of leverage including, among others, futures and forward contracts (including foreign currency exchange contracts), total return swaps and other derivative transactions, loans of portfolio securities, short sales and when-issued, delayed delivery and forward commitment transactions and selling credit default swaps. The Fund may also determine to issue preferred shares or other types of senior securities to add leverage to its portfolio. The Fund’s Board of Trustees may authorize the issuance of preferred shares without the approval of Common Shareholders. If the Fund issues preferred shares in the future, all costs and expenses relating to the issuance and ongoing maintenance of the preferred shares will be borne by the Common Shareholders, and these costs and expenses may be significant. Under normal market conditions, the Fund will limit its use of leverage from any combination of (i) reverse repurchase agreements or dollar roll transactions (whether or not these instruments are covered as discussed below), (ii), borrowings (i.e., loans or lines of credit from banks or other credit facilities), (iii) any future issuance of preferred shares, and (iv) to the extent described below, credit default swaps, other swap agreements and futures contracts (whether or not these instruments are covered with segregated assets as discussed below) such that the assets attributable to the use of such leverage will not exceed 50% of the Fund’s total assets (including, for purposes of the 50% limit, the amounts of leverage obtained through the use of such instruments) (the “50% policy”). For these purposes, assets attributable to the use of leverage from credit default swaps, other swap agreements and futures contracts will be determined based on the current market value of the instrument if it is cash settled or based on the notional value of the instrument if it is not cash settled. In addition, assets attributable to credit default swaps, other swap agreements or futures contracts will not be counted towards the 50% policy to the extent that the Fund owns offsetting positions or enters into offsetting transactions. Depending upon market conditions and other factors, the Fund may or may not determine to a...
