(Bloomberg) -- Blackstone Inc.'s flagship private credit fund has sold a new collateralized loan obligation deal, finding enough demand for the debt to boost its size by $50 million, according to a person familiar with the matter.
The fund, known as BCRED, was able to upsize the bond sale to about $450 million, from $400 million, the person said, declining to be identified discussing private details. Unlike most CLOs, the deal is a so-called "static" transaction, with cash flows from a fixed pool of loans rather than an actively traded portfolio.
The largest portion of the offering, rated AAA, was sold to investors at a premium of 1.28 percentage point over a floating interest-rate benchmark. That's a similar risk premium to previous CLOs issued by BCRED.
Blackstone first planned the transaction months ago, Bloomberg previously reported. The increase in the size of the offering indicates that despite concerns about the risks in private credit, institutional investors are still happy to invest in deals backed by pools of those loans.
BCRED and other private credit retail funds, known as business development companies, have been contending with surging requests for redemptions from retail investors as concerns deepen over exposure to vulnerable industries such as software.
--With assistance from Charles Williams.
(Updates second paragraph to add more detail about the CLO's structure. A previous version of the story was corrected to remove a reference to enforcement of redemption limits.)
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