Blackstone / GSO Closed-End Funds Announce Transition to Dynamic Monthly Distributions and Declare Monthly Distributions
NEW YORK--(BUSINESS WIRE)--Nov 20, 2018--GSO / Blackstone Debt Funds Management LLC, an affiliate of GSO Capital Partners LP (“GSO”), announced that the three listed closed-end funds it advises, Blackstone / GSO Senior Floating Rate Term Fund (NYSE: BSL), Blackstone / GSO Long-Short Credit Income Fund (NYSE: BGX), and Blackstone / GSO Strategic Credit Fund (NYSE: BGB) (each a “Fund” and together the “Funds”) (i) are transitioning from a strategy that seeks to maintain Fund distributions at stable levels notwithstanding increases or decreases in net income earned to a distribution strategy that is more reflective of the net income earned by the Funds and (ii) have declared monthly distributions for the next three months that reflect the transition to the new strategy and represent an increase over prior distributions.
After considering various factors, including those listed below, the Funds’ board of trustees, based on the recommendation of GSO, has determined it would be in the shareholders’ best interests to transition to a “dynamic” distribution strategy based on net income actually earned by the Funds. To date, each of the Fund’s monthly distributions per share have generally not varied from month to month, irrespective of any change in the net income actually earned by the Funds. Going forward, the Funds expect to declare a set of monthly distributions each quarter in amounts closely tied to the respective Fund’s recent average monthly net income. As a result, GSO expects that the monthly distribution amounts for the Funds will vary quarter-to-quarter. While the Funds will continue to seek competitive distribution amounts over time, the dynamic distribution strategy will provide GSO with greater flexibility to maintain portfolio credit quality in varying market conditions and will allow shareholders to potentially benefit from the floating rate structure of the Funds’ investments. In addition, the dynamic distribution strategy will reduce the need to retain reserves from net investment income to support the stability of future distributions.
The Funds’ monthly distributions are set forth below. The following dates apply to the distribution declarations for the Funds:
Ex-Date: December 20, 2018 Record Date: December 21, 2018 Payable Date: December 31, 2018
Ex-Date: December 28, 2018 Record Date: December 31, 2018 Payable Date: January 31, 2019
Ex-Date: February 20, 2019 Record Date: February 21, 2019 Payable Date: February 28, 2019
In connection with the Funds’ dynamic distribution strategy, GSO expects that future distributions will likely differ from, and be more or less than, those shown above. As a result, shareholders of any Fund should not expect that Fund to continue to pay distributions in the same amounts shown above.
GSO views the intended benefits of the transition to a dynamic distribution to include the following:Allows for a distribution amount that can better match the floating-rate nature of loans, which account for a majority of each Fund’s assets May result in more of the net income earned by the Funds being distributed to shareholders in a more timely, efficient manner Allows GSO to be more flexible in changing market conditions, without pressure to “reach” for yield, which can result in a portfolio that is at greater risk of principal losses
While the Funds hope to realize these intended benefits, there can be no assurance they will be successful in doing so, and the transition to this approach may result in unexpected movements in the Funds’ respective share prices, with possible implications for the relationship between the net asset value per Fund share and its market price. The transition to a dynamic distribution does not alter the Funds’ respective investment objectives and strategies.
A portion of each distribution may be treated as paid from sources other than net investment income, including but not limited to short-term capital gain, long-term capital gain, or return of capital. The final determination of the source and tax characteristics of these distributions will depend upon each Fund’s investment experience during its fiscal year and will be made after the Fund’s year end. Each Fund will send to investors a Form 1099-DIV for the calendar year that will define how to report these distributions for federal income tax purposes.
About The Blackstone Group and GSO Capital Partners
Blackstone is one of the world’s leading investment firms. Blackstone seeks to create positive economic impact and long-term value for its investors, the companies it invests in, and the communities in which it works. The firm does this by using extraordinary people and flexible capital to help companies solve problems. Blackstone’s asset management businesses, with $457 billion in assets under management as of September 30, 2018, include investment vehicles focused on private equity, real estate, public debt and equity, non-investment grade credit, real assets and secondary funds, all on a global basis. Further information is available at www.blackstone.com. Follow Blackstone on Twitter @Blackstone.
GSO is part of the global credit investment platform of Blackstone. GSO is one of the largest alternative managers in the world focused on the leveraged-finance, or non-investment grade related, marketplace. GSO seeks to generate attractive risk-adjusted returns in its business by investing in a broad array of strategies including mezzanine debt, distressed investing, leveraged loans and other special-situation strategies. Its funds are major providers of credit for small and middle-market companies, and it also advances rescue financing to help distressed companies. Overall, Blackstone’s credit platform, which also includes Blackstone Insurance Solutions and Harvest Fund Advisors LLC’s energy MLP business, has assets under management of over $130 billion, as of September 30, 2018.
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CONTACT: Blackstone GSO Funds
Jane Lee, 877-876-1121
KEYWORD: UNITED STATES NORTH AMERICA NEW YORK
INDUSTRY KEYWORD: PROFESSIONAL SERVICES BANKING FINANCE
SOURCE: GSO / Blackstone Debt Funds Management LLC
Copyright Business Wire 2018.
PUB: 11/20/2018 04:15 PM/DISC: 11/20/2018 04:15 PM