BlackRock Sells $2.5B In Bonds To Help Fund Preqin Deal: Report
BlackRock, Inc. (NYSE:BLK) is selling $2.5 billion in U.S. investment-grade bonds to help pay for its $3.2 billion acquisition of private-markets data company Preqin.
What Happened: According to Bloomberg, citing an anonymous source, BlackRock Funding plans to sell the notes in three tranches.
The longest part of the deal matures in 30 years. It expects to yield one percentage point above Treasuries.
BlackRock did not immediately respond to Benzinga’s request for comment on the reported transaction.
BlackRock agreed to acquire London-based Preqin as part of an effort to grow its presence in private-markets investing. In January, the firm spent $12.5 billion to take over Global Infrastructure Partners.
Private markets are rapidly growing and expected to reach nearly $40 trillion by decade's end. This sector's data market, currently valued at $8 billion, is growing 12% annually and is projected to reach $18 billion by 2030.
The Preqin acquisition is expected to close by the end of this year. Bank of America Corporation (NYSE:BAC), JPMorgan Chase & Co. (NYSE:JPM), Morgan Stanley (NYSE:MS) and Wells Fargo & Company (NYSE:WFC) are leading the bond sale.
The three-year portion of the notes offering comes with a special mandatory redemption clause, which means BlackRock will buy back the notes at 101% if the Preqin deal fails to close by Sept. 2, 2025.
Price Action: BlackRock dipped 0.54% to $839.40 by late-afternoon trading on Wednesday, while exchange-traded funds that hold the stock rose and fell.
Fidelity Disruptive Finance ETF (NASDAQ:FDFF) lost 0.35% as Schwab U.S. Dividend Equity ETF (NYSE:SCHD) gained 1.32% and The Nightview Fund (NYSE:NITE) slipped 3.1%. Madison Dividend Value ETF (NYSE:DIVL) edged up 0.92% and Copper Place Global Dividend Growth ETF (NYSE:GDVD) rose 0.52%.GDVD
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