BGX Blackstone Long Short Credit Income Fund

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM N-CSR

 

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

 

Investment Company Act file number: 811-22488

 

Blackstone Long-Short Credit Income Fund

(exact name of Registrant as specified in charter)

 

345 Park Avenue, 31^st Floor

New York, New York 10154

(Address of principal executive offices) (Zip code)

 

(Name and address of agent for service)

 

Marisa Beeney

Blackstone Alternative Credit Advisors LP

345 Park Avenue, 31^st Floor

New York, New York 10154

 

Registrant’s telephone number, including area code: (877) 876-1121

 

Date of fiscal year end: December 31

 

Date of reporting period: June 30, 2023

 

Item 1.   Report to Stockholders.

 

(a)

 

 

Table of Contents

 

 

Manager Commentary	2
Fund Summary	4
Portfolio of Investments	13
Statements of Assets and Liabilities	65
Statements of Operations	66
Statements of Changes in Net Assets	67
Statements of Cash Flows	68
Financial Highlights	69
Notes to Financial Statements	79
Summary of Dividend Reinvestment Plan	95
Additional Information	96
Privacy Procedures	98
Approval of Investment Advisory Agreement	109
Trustees & Officers	113

Blackstone Credit Funds

Manager Commentary

June 30, 2023 (Unaudited)

 

To Our Shareholders:

 

Credit market performance rebounded strongly over the first half of 2023 following last year’s negative returns. Floating rate loans outperformed high yield bonds against a still-hawkish Federal Reserve Bank (“Fed”) determined to bring inflation under control.

 

 

CCC-rated loans led the index with an 8.47% return over the first half of 2023.^iv B-rated loans followed closely behind at 7.19%, while BB-rated loans trailed the index at just 4.95%.^v This stands in stark contrast to 2022 where lower-rated assets suffered higher losses than higher-rated assets.

 

High yield also recovered well from last year, returning 5.38% over the first half of 2023,^vi while CLO debt tranches posted a 4.45% return through the same period.^vii

 

Overall loan and high yield prices have risen $2 and $3 higher since the start of the year to $94.24 and $88.97, respectively.^viii Yields are at 10.41% for loans and 8.50% for high yield, while credit spreads rounded out at 501 basis points for leveraged loans and 417 basis points for high yield.^ix These spreads have tightened and are 58 basis points and 72 basis points lower than at the start of 2023, for loans and high yield, respectively.

 

Technicals have underpinned performance across non-investment grade credit as demand has far outstripped meager new issue supply.

 

Loan market issuance of $100 billion through the first half of the year was down 40% from last year and at its lowest level since 2010.^x Refinancings comprised a majority of the little activity there has been in the market (65% of volume^xi) with new money transactions in short supply. Borrowers have reduced 2024 maturities by over 50% and 2025 maturities by 26% via refinancing and amend-to-extend activity this year^xii. We believe refinancing the residual 2024/2025 tally could prove more challenging amid investor preference for better-quality assets and given that B-rated borrowers account for roughly half of the remaining amount.^xiii

 

High yield issuers grew increasingly active over the first half of 2023 to price $93.6 billion, which is closing in on 2022’s full-year total of $102 billion.^xiv However, overall supply has remained depressed compared to historical standards, and ongoing rising star upgrades have further depleted the outstanding universe.

 

On the demand side, recession fears spurred ongoing outflows from loan retail funds to nearly $19 billion over the first half of 2023.^xv High-yield funds have also experienced about $11 billion of outflows this year.^xvi

 

CLOs have proved the main buyers of loans as a result, although continued low asset supply and a challenged arbitrage has caused volumes to ease from last year. The second quarter supply was the lowest since the onset of the COVID-19 pandemic in the second quarter of 2020, and year-to-date issuance is trailing last year’s comparable period by 25%.^xvii

 

Looking ahead to the second half of 2023 and after raising rates again in July following June’s pause, the Fed has left the door open for additional hikes if necessary to ensure it meets its goal of returning inflation closer to the 2% range. We believe that higher rates should underpin loan market performance over the near term, given the market’s history of performing well during periods of rising or stable rates.^xviii

 

Ongoing economic resilience has fueled hopes that the Fed can achieve the rare feat of a soft landing. However, we continue to prepare for a tougher credit cycle as the prospect of rates staying high for an extended period and slower growth both weigh on corporate performance.

 

2	www.blackstone-credit.com

Blackstone Credit Funds

Manager Commentary

June 30, 2023 (Unaudited)

 

Defaults are expected to rise from current levels of 2.71% for high yield and 2.94% for loans,^xix although we believe the current fundamental health of the broader fixed income market may help keep stress at more manageable levels. A glance at corporate balance sheets highlights leverage at decade lows and interest coverage, while deteriorating, still close to a four-year high.^xx

 

We believe this ongoing challenging and volatile environment will lead to elevated performance dispersion across managers. In our view, managers with experience during previous downturns and an active investment strategy should be better placed to identify the alpha opportunities.

 

At Blackstone Credit, we value your continued investment and confidence in us and in our family of funds. Additional information about our funds is available on our website at www.blackstone-credit.com.

 

Sincerely,

Blackstone Liquid Credit Strategies LLC

 

All figures are approximate and as of June 30, 2023, unless otherwise indicated. The words “we”, “us”, and “our” refer to BSL, BGX and BGB, unless the context requires otherwise. In all other instances, including with respect to current and forward-looking views and opinions of the market and BSL, BGX and BGB 's portfolio and performance positioning, these terms refer to BSL's, BGX's and BGB's adviser, Blackstone Liquid Credit Strategies LLC.

 

Certain information contained in this communication constitutes “forward-looking statements” within the meaning of the federal securities laws and the Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by the use of forward-looking terminology, such as “outlook,” “indicator,” “believes,” “expects,” “potential,” “continues,” “may,” “can,” “will,” “should,” “seeks,” “approximately,” “predicts,” “intends,” “plans,” “estimates,” “anticipates”, “confident,” “conviction,” “identified” or the negative versions of these words or other comparable words thereof. These may include BSL's, BGX's and BGB's financial estimates and their underlying assumptions, statements about plans, objectives and expectations with respect to future operations, statements regarding future performance, statements regarding economic and market trends and statements regarding identified but not yet closed investments. Such forward-looking statements are inherently uncertain and there are or may be important factors that could cause actual outcomes or results to differ materially from those indicated in such statements. BSL, BGX and BGB believe these factors include but are not limited to those described under the section entitled “Risk Factors” in their prospectuses and annual reports for the most recent fiscal year, and any such updated factors included in their periodic filings with the Securities and Exchange Commission (the “SEC”), which are accessible on the SEC's website at www.sec.gov. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this document (or BSL's, BGX's and BGB's prospectus and other filings). Except as otherwise required by federal securities laws, BSL, BGX and BGB undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future developments or otherwise.

 

i	Morningstar LSTA US Leveraged Loan Index, as of June 30, 2023.

ii	Pitchbook LCD, Weekly Wrap, as of July 6, 2023.

iii	Bloomberg as of March 31, 2023.

iv	Morningstar LSTA US Leveraged Loan Index, as of June 30, 2023.

v	Morningstar LSTA US Leveraged Loan Index, as of June 30, 2023.

vi	Morningstar LSTA US Leveraged Loan Index, Bloomberg High Yield Index as of June 30, 2023.

vii	JP Morgan CLOIE Index, as of June 30, 2023.

viii	Morningstar LSTA US Leveraged Loan Index, Bloomberg High Yield Index, as of June 30, 2023.

ix	Morningstar LSTA US Leveraged Loan Index, Bloomberg High Yield Index, as of June 30, 2023.

x	Pitchbook LCD, as of June 30, 2023.

xi	Pitchbook LCD, as of June 30, 2023.

xii	Pitchbook LCD, as of June 30, 2023.

xiii	Pitchbook LCD June Wrap, as of July 5, 2023.

xiv	Pitchbook LCD, as of June 30, 2023.

xv	Pitchbook LCD, as of June 30, 2023.

xvi	JP Morgan, Lipper, as of June 30, 2023.

xvii	Pitchbook LCD, as of June 30, 2023.

xviii

JP Morgan High Yield and Leveraged Loan Market Monitor, as of July 5, 2023.

xix	JP Morgan, Default Monitor, as of July 5, 2023.

xx	JP Morgan, 1Q23 High Yield Credit Fundamentals, as of June 12, 2023.

 

Semi-Annual Report | June 30, 2023

3

Blackstone Senior Floating Rate 2027 Term Fund

Fund Summary

June 30, 2023 (Unaudited)

 

Blackstone Senior Floating Rate 2027 Term Fund

 

Fund Overview

 

Blackstone Senior Floating Rate 2027 Term Fund (“BSL” or herein, the “Fund”) is a closed-end term fund that trades on the New York Stock Exchange under the symbol “BSL”. BSL’s primary investment objective is to seek high current income, with a secondary objective to seek preservation of capital, consistent with its primary goal of high current income. Under normal market conditions, the Fund invests at least 80% of its Managed Assets in senior, secured floating rate loans (“Senior Loans”). BSL may also invest in second-lien loans and high yield bonds and employs financial leverage, which may increase risk to the Fund. The Fund has a limited term, and absent shareholder approval to extend the life of the Fund, the Fund will dissolve on or about May 31, 2027.

 

Portfolio Management Commentary

 

Fund Performance

As of June 30, 2023, BSL outperformed its benchmark, the Morningstar LSTA US Leveraged Loan Index (“Morningstar LLI”), on a Net Asset Value (“NAV”) per share basis for the six-month, three-year, ten-year and since inception periods and underperformed its benchmark for the one-year and five-year periods. On a share price basis, the Fund outperformed its benchmark for the six-month and three-year periods and underperformed for the one-year, five-year, ten-year, and since inception periods. The shares of the Fund traded at an average discount to NAV of 11.0% for the six-months ended June 30, 2023, compared to its peer group average discount of 11.0% over the same period.

 

NAV Performance Factors

The Fund’s outperformance relative to the benchmark for the six months ended June 30, 2023 was primarily attributable to leverage and the Fund’s CLO allocation. By issuer, the largest positive contributors to performance were TecoStar Holdings, Vision Solutions and CoreLogic, and the most significant detractors were Carestream Health, Global Medical Response and Lumen Technologies.

 

Portfolio Activity and Positioning

During the period, we continued to dynamically manage the Fund. The Fund’s largest sector overweights were Financial Services; Healthcare Providers & Services; and Industrial Conglomerates. The largest sector underweights were Software; Machinery; and Specialty Retail. The Fund increased its allocation to first lien broadly syndicated senior loans while reducing its exposure to high yield bonds and CLO securities.

 

4	www.blackstone-credit.com

Blackstone Senior Floating Rate 2027 Term Fund

Fund Summary

June 30, 2023 (Unaudited)

 

Performance Summary

Performance quoted represents past performance, which may be higher or lower than current performance. Past performance is not indicative of future results. The returns shown do not reflect taxes that an investor would pay on Fund distributions or on the sale of Fund shares. To obtain the most recent month-end performance, visit www.blackstone-credit.com.

 

Value of a $10,000 Investment

 

 

 

BSL Total Return (as of June 30, 2023)

 

	6 Month	1 Year	3 Year†	5 Year†	10 Year†	Since Inception†
NAV*	7.67%**	9.36%	7.21%	3.77%	4.48%	5.11%
Market Price*	8.34%	5.19%	7.39%	1.01%	2.89%	3.85%
Morningstar LSTA US Leveraged Loan Index	6.48%	10.71%	6.31%	4.13%	4.07%	4.60%

 

†

Annualized.

*

NAV is equal to the total assets attributable to common shareholders less liabilities divided by the number of common shares outstanding. Market Price is the price at which a share can currently be traded in the market. Market Price is based on the close price at 4 p.m. ET and does not represent the returns an investor would receive if shares were traded at other times. Return assumes distributions are reinvested pursuant to the Fund’s dividend reinvestment plan. Performance data quoted represents past performance and does not guarantee future results.

**

Excludes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value and total return for shareholder transactions reported to the market as of June 30, 2023 may differ from the net asset value for financial reporting purposes.

 

Semi-Annual Report | June 30, 2023

5

Blackstone Senior Floating Rate 2027 Term Fund

Fund Summary

June 30, 2023 (Unaudited)

 

6	www.blackstone-credit.com

Blackstone Long-Short Credit Income Fund

Fund Summary

June 30, 2023 (Unaudited)

 

Blackstone Long-Short Credit Income Fund

 

Fund Overview

 

Blackstone Long Short Credit Income Fund (“BGX” or herein, the “Fund”) is a closed-end fund that trades on the New York Stock Exchange under the symbol “BGX”. BGX’s primary investment objective is to provide current income, with a secondary objective of capital appreciation. BGX will take long positions in investments which we believe offer the potential for attractive returns under various economic and interest rate environments. BGX may also take short positions in investments which we believe will under-perform due to a greater sensitivity to earnings growth of the issuer, default risk or the general level and direction of interest rates. BGX must hold no less than 70% of its Managed Assets in first- and second-lien secured loans (“Secured Loans”), but may also invest in unsecured loans and high yield bonds.

 

Portfolio Management Commentary

 

Fund Performance

Effective June 1, 2023, BGX changed its benchmark from a composite weighting of the Morningstar LLI and the Bloomberg U.S. High Yield Index (“Bloomberg HYI”) (70% loans, 30% high yield bonds) to a composite weighting of the Morningstar LLI and the Bloomberg HYI (85% loans, 15% high yield bonds) in order to reflect the midpoint of the Fund’s possible exposure to high yield bond investments, rather than the maximum level.

 

As of June 30, 2023, BGX outperformed a composite weighting of the Morningstar LLI and the Bloomberg HYI (85% loans, 15% high yield bonds) on a NAV per share basis for the six-month, three-year, ten-year and since inception periods and underperformed its benchmark for the one-year and five-year periods. On a share price basis, the Fund outperformed its benchmark for the six month and three-year periods and underperformed for the one-year, five-year, ten-year and since inception periods.

 

As of June 30, 2023, BGX outperformed its prior benchmark, a composite weighting of the Morningstar LLI and the Bloomberg HYI (70% loans, 30% high yield bonds), on a NAV per share basis for the six-month, three-year, ten-year and since inception periods and underperformed its benchmark for the one-year and five-year periods. On a share price basis, the Fund outperformed its benchmark for the six month and three-year periods and underperformed for the one-year, five-year, ten-year and since inception periods.

 

The shares of the Fund traded at an average discount to NAV of 13.5% for the six-months ended June 30, 2023, compared to its peer group average discount of 11.1% over the same period.

 

NAV Performance Factors

The Fund’s outperformance relative to the current benchmark for the six months ended June 30, 2023 was primarily attributable to leverage, the Fund’s CLO allocation and credit selection within loans. By issuer, the largest positive contributors to performance were Vision Solutions, TecoStar Holdings and CoreLogic, and the most significant detractors were Carestream Health, Lumen Technologies and Global Medical Response.

 

Portfolio Activity and Positioning

During the period, we continued to dynamically manage the Fund. The Fund’s largest sector overweights were Financial Services; Healthcare Providers & Services; and Industrial Conglomerates. The largest sector underweights were Software; Machinery; and Specialty Retail. The Fund increased its allocation to broadly syndicated loans while reducing its exposure to high yield bonds.

 

Semi-Annual Report | June 30, 2023

7

Blackstone Long-Short Credit Income Fund

Fund Summary

June 30, 2023 (Unaudited)

 

Performance Summary

Performance quoted represents past performance, which may be higher or lower than current performance. Past performance is not indicative of future results. The returns shown do not reflect taxes that an investor would pay on Fund distributions or on the sale of Fund shares. To obtain the most recent month-end performance, visit www.blackstone-credit.com.

 

Value of a $10,000 Investment

 

 

 

BGX Total Return (as of June 30, 2023)

 

	6 Month	1 Year	3 Year†	5 Year†	10 Year†	Since Inception†
NAV*	8.41%**	9.12%	6.64%	3.53%	4.82%	5.16%
Market Price*	10.24%	8.69%	6.36%	1.71%	3.08%	3.69%
85% Morningstar LLI /15% Bloomberg HYI***	6.32%	10.49%	5.86%	4.03%	4.13%	4.35%
70% Morningstar US LLI /30% Bloomberg HYI	6.15%	10.26%	5.39%	3.93%	4.20%	4.50%

 

†	Annualized.

*

NAV is equal to the total assets attributable to common shareholders less liabilities divided by the number of common shares outstanding. Market Price is the price at which a share can currently be traded in the market. Market Price is based on the close price at 4 p.m. ET and does not represent the returns an investor would receive if shares were traded at other times. Return assumes distributions are reinvested pursuant to the Fund’s dividend reinvestment plan. Performance data quoted represents past performance and does not guarantee future results.

**

Excludes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value and total return for shareholder transactions reported to the market as of June 30, 2023 may differ from the net asset value for financial reporting purposes.

***

Effective June 1, 2023, BGX changed its benchmark from a composite weighting of the Morningstar LLI and the Bloomberg U.S. High Yield Index (“Bloomberg HYI”) (70% loans, 30% high yield bonds) to a composite weighting of the Morningstar LLI and the Bloomberg HYI (85% loans, 15% high yield bonds) in order to reflect the midpoint of the Fund’s possible exposure to high yield bond investments, rather than the maximum level.

 

8	www.blackstone-credit.com

Blackstone Long-Short Credit Income Fund

Fund Summary

June 30, 2023 (Unaudited)

 

Semi-Annual Report | June 30, 2023

9

Blackstone Strategic Credit 2027 Term Fund

Fund Summary

June 30, 2023 (Unaudited)

 

Blackstone Strategic Credit 2027 Term Fund

 

Fund Overview

 

Blackstone Strategic Credit 2027 Term Fund (“BGB” or herein, the “Fund”) is a closed-end term fund that trades on the New York Stock Exchange under the symbol “BGB”. BGB’s primary investment objective is to seek high current income, with a secondary objective to seek preservation of capital, consistent with its primary goal of high current income. BGB invests primarily in a diversified portfolio of loans and other fixed income instruments of predominantly U.S. corporate issuers, including first- and second-lien loans (“Senior Secured Loans”) and high yield corporate bonds of varying maturities. BGB must hold no less than 80% of its Managed Assets in credit investments comprised of corporate fixed income instruments and other investments (including derivatives) with similar economic characteristics. The Fund has a limited term and will dissolve on or about September 15, 2027, absent shareholder approval to extend such term.

 

Portfolio Management Commentary

 

Fund Performance

As of June 30, 2023, BGB outperformed a composite weighting of the Morningstar LLI and the Bloomberg HYI (75% loans, 25% high yield bonds) on a NAV per share basis for the six-month, three-year and since inception periods and underperformed its benchmark for the one-year, five-year and ten-year periods. On a share price basis, the Fund outperformed its benchmark for the six-month and three-year periods and underperformed for the one-year, five-year, ten-year and since inception periods. The shares of the Fund traded at an average discount to NAV of 12.5% for the six-months ended June 30, 2023, compared to its peer group average discount of 11.2% over the same period.

 

NAV Performance Factors

The Fund’s outperformance relative to the benchmark for the six months ended June 30, 2023 was primarily attributable to leverage and credit selection in loans. By issuer, the largest positive contributors to performance were Vision Solutions, TecoStar Holdings and CoreLogic, and the most significant detractors were Carestream Health, Global Medical Response and Output Services Corp.

 

Portfolio Activity and Positioning

During the period, we continued to dynamically manage the Fund. The Fund’s largest sector overweights were Healthcare Providers & Services; Professional Services; and Financial Services. The largest sector underweights were Machinery; Specialty Retail; and Containers & Packaging. The Fund increased its allocation to broadly syndicated loans while reducing its exposure to high yield bonds.

 

10	www.blackstone-credit.com

Blackstone Strategic Credit 2027 Term Fund

Fund Summary

June 30, 2023 (Unaudited)

 

Performance Summary 

Performance quoted represents past performance, which may be higher or lower than current performance. Past performance is not indicative of future results. The returns shown do not reflect taxes that an investor would pay on Fund distributions or on the sale of Fund shares. To obtain the most recent month-end performance, visit www.blackstone-credit.com.

 

Value of a $10,000 Investment

 

 

 

BGB Total Return (as of June 30, 2023)

 

	6 Month	1 Year	3 Year†	5 Year†	10 Year†	Since Inception†
NAV*	7.63%**	8.33%	6.14%	2.52%	4.15%	4.30%
Market Price*	8.41%	6.94%	6.34%	1.23%	2.95%	2.65%
75% Morningstar LLI /25% Bloomberg HYI	6.21%	10.34%	5.55%	3.96%	4.18%	4.25%

 

†	Annualized.

*

NAV is equal to the total assets attributable to common shareholders less liabilities divided by the number of common shares outstanding. Market Price is the price at which a share can currently be traded in the market. Market Price is based on the close price at 4 p.m. ET and does not represent the returns an investor would receive if shares were traded at other times. Return assumes distributions are reinvested pursuant to the Fund’s dividend reinvestment plan. Performance data quoted represents past performance and does not guarantee future results.

**

Excludes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value and total return for shareholder transactions reported to the market as of June 30, 2023 may differ from the net asset value for financial reporting purposes.

 

Semi-Annual Report | June 30, 2023

11

Blackstone Strategic Credit 2027 Term Fund

Fund Summary

June 30, 2023 (Unaudited)

 

12	www.blackstone-credit.com

Blackstone Senior Floating Rate 2027 Term Fund

Portfolio of Investments

June 30, 2023 (Unaudited)

 

		Principal Amount				Value
FLOATING RATE LOAN INTERESTS(a) - 137.10%
Aerospace & Defense - 6.03%
Amentum Government Services Holdings LLC, First Lien Term Loan, 3M US SOFR + 4.00%, 02/15/2029(b)		$	1,368,202			$	1,340,838
Atlas CC Acquisition Corp., First Lien B Term Loan, 3M US SOFR + 4.25%, 0.75% Floor, 05/25/2028			1,998,413				1,746,583
Atlas CC Acquisition Corp., First Lien C Term Loan, 3M US SOFR + 4.25%, 0.75% Floor, 05/25/2028			406,457				355,237
Avolon TLB Borrower 1 (US) TL, First Lien Term Loan, 1M US SOFR + 2.50%, 06/22/2028			737,224				737,751
LSF11 Trinity BidCo, Inc., TL, First Lien Term Loan, 1M US SOFR + 4.50%, 06/14/2030(b)			986,923				985,689
Nordam Group LLC, First Lien Initial Term Loan, 1M US SOFR + 5.50%, 04/09/2026			1,685,199				1,447,164
Peraton Corp., First Lien B Term Loan, 1M US L + 3.75%, 0.75% Floor, 02/01/2028			2,300,288				2,264,553
TransDigm Inc., TLI, First Lien Term Loan, 3M US SOFR + 3.25%, 08/24/2028			1,516,775				1,517,654
Vertex Aerospace Corp., First Lien Term Loan, 1M US SOFR + 3.75%, 12/06/2028			856,433				857,328
							11,252,797
Air Freight & Logistics - 1.44%
Kenan Advantage Group, Inc., First Lien U.S. B-1 Term Loan, 6M US SOFR + 4.17826%, 0.75% Floor, 03/24/2026			1,097,194				1,096,706
WWEX UNI TopCo Holdings LLC, First Lien Initial Term Loan, 3M US SOFR + 4.00%, 0.75% Floor, 07/26/2028			1,664,308				1,584,912
							2,681,618
Automobile Components - 2.44%
Belron Luxembourg Sarl, First Lien Term Loan, 1M US SOFR + 2.85%, 0.50% Floor, 04/18/2029			363,979				364,664
Burgess Point Purchaser Corp., First Lien Term Loan, 1M US SOFR + 5.25%, 07/25/2029			1,468,320				1,397,136
Clarios Global LP, TL, First Lien Term Loan, 3M US SOFR + 3.75%, 05/06/2030			1,396,110				1,394,581
Mavis Tire Express Services Topco Corp., First Lien Term Loan, 1M US SOFR + 4.00%, 0.75% Floor, 05/04/2028			748,897				743,516
Phinia Inc., TL, First Lien Term Loan, 6M US SOFR + 3.75%, 06/08/2028			653,333				653,333
							4,553,230
Beverages - 0.95%
Triton Water Holdings, Inc., First Lien Initial Term Loan, 3M US SOFR + 3.50%, 0.50% Floor, 03/31/2028			1,838,316				1,781,732
Biotechnology - 0.74%
Grifols Worldwide Operations, TLB, First Lien Term Loan, 3M US SOFR + 2.00%, 11/15/2027			1,400,861				1,380,724
Broadline Retail - 0.90%
Pilot Travel Centers LLC, First Lien Term Loan, 1M US L + 2.00%, 08/04/2028			1,682,785				1,682,482
Building Products - 3.89%
Chariot Buyer LLC, First Lien Term Loan:
1M US SOFR + 3.25%, 0.50% Floor, 11/03/2028			1,056,271				1,034,110
3M US L + 7.51%, 0.50% Floor, 10/31/2029			1,300,776				1,300,451
CP Atlas Buyer, Inc., First Lien B Term Loan, 3M US SOFR + 3.50%, 0.50% Floor, 11/23/2027			1,679,100				1,585,071
Kodiak Building Partners Inc. TLB, First Lien Term Loan, 3M US SOFR + 3.25%, 0.75% Floor, 03/12/2028			2,058,292				2,011,980
Oscar Acquisitionco LLC, First Lien Term Loan, 3M US SOFR + 4.50%, 0.50% Floor, 04/29/2029			1,361,238				1,332,312
							7,263,924

 

See Notes to Financial Statements.

Semi-Annual Report | June 30, 2023

13

Blackstone Senior Floating Rate 2027 Term Fund

Portfolio of Investments

June 30, 2023 (Unaudited)

 

		Principal Amount				Value
Capital Markets - 1.74%
Apex Group Treasury, Ltd., First Lien USD Term Loan, 3M US L + 3.75%, 0.50% Floor, 07/27/2028		$	749,102			$	740,675
Focus Financial Partners LLC, First Lien Term Loan:
1M US SOFR + 3.50%, 06/30/2028			538,776				536,553
3M US L + 2.50%, 0.50% Floor, 06/30/2028			1,988,595				1,968,441
							3,245,669
Chemicals - 2.25%
Ecovyst Catalyst Technologies LLC, First Lien Term Loan, 3M US L + 2.50%, 0.50% Floor, 06/09/2028			994,924				992,048
Geon Performance Solutions LLC, First Lien Term Loan, 3M US L + 4.50%, 0.75% Floor, 08/18/2028			1,145,102				1,131,149
Hyperion Materials & Technologies, Inc., First Lien Initial Term Loan, 1M US L + 4.25%, 0.50% Floor, 08/30/2028			744,521				740,102
Messer Industries LLC Tl, First Lien Term Loan, 3M US L + 2.50%, 03/02/2026			908,044				908,639
Nouryon Finance B.V., TLB, First Lien Term Loan, 3M US SOFR + 4.00%, 04/03/2028			425,532				423,581
							4,195,519
Commercial Services & Supplies - 4.62%
Access CIG LLC, Second Lien Initial Term Loan, 1M US L + 7.75%, 02/27/2026			1,074,290				1,014,312
Allied Universal Holdco LLC, TLB, First Lien Term Loan, 3M US SOFR + 4.75%, 05/12/2028			1,510,000				1,478,547
Covanta 11/21 TLB, First Lien Term Loan, 3M US L + 2.50%, 11/30/2028			1,585,104				1,573,668
Covanta 11/21 TLC, First Lien Term Loan, 1M US SOFR + 2.50%, 11/30/2028			119,934				119,068
Covanta Holding Corporation, TL, First Lien Term Loan:
1M US SOFR + 3.00%, 11/30/2028			29,070				28,992
1M US SOFR + 3.00%, 11/30/2028			387,597				386,568
DG Investment Intermediate Holdings 2, Inc., Second Lien Initial Term Loan, 1M US L + 6.75%, 0.75% Floor, 03/30/2029			601,071				535,329
Garda World Security Corp., First Lien B-2 Term Loan, 1M US SOFR + 4.25%, 10/30/2026			1,101,356				1,097,226
Revspring, Inc., First Lien Initial Term Loan, 3M US SOFR + 4.00%, 10/11/2025			1,260,600				1,215,433
TMF Sapphire Bidco B.V., TLB, First Lien Term Loan, 1M US SOFR + 5.00%, 05/05/2028			290,909				291,455
United Site Cov-Lite, First Lien Term Loan, 3M US L + 4.25%, 12/15/2028			1,079,452				889,603
							8,630,201
Communications Equipment - 0.42%
Commscope, Inc., First Lien Initial Term Loan, 1M US L + 3.25%, 04/06/2026			596,899				573,098
MLN US HoldCo LLC, First Lien B Term Loan, 3M US SOFR + 4.50%, 11/30/2025			854,492				205,078
							778,176
Construction & Engineering - 2.12%
Aegion Corp., First Lien Initial Term Loan, 1M US SOFR + 4.75%, 0.75% Floor, 05/17/2028			1,434,335				1,394,447
APi Group DE, Inc., First Lien Term Loan, 1M US SOFR + 2.75%, 01/03/2029			907,832				910,596
Brookfield WEC Holdings, Inc., First Lien Initial (2021) Term Loan, 1M US L + 2.75%, 0.50% Floor, 08/01/2025			372,479				372,168
Tutor Perini Corp., First Lien B Term Loan, 3M US L + 4.75%, 1.00% Floor, 08/18/2027			1,409,299				1,277,431
							3,954,642
Construction Materials - 1.52%
Quickrete Holdings, Inc., First Lien Initial Term Loan, 1M US L + 2.50%, 02/01/2027			1,492,268				1,491,261
White Cap Buyer LLC, First Lien Initial Closing Date Term Loan, 1M US SOFR + 3.75%, 0.50% Floor, 10/19/2027			1,351,311				1,342,210
							2,833,471
Containers & Packaging - 2.01%
Berry Global, Inc., First Lien Term Loan, 1M US L + 1.75%, 07/01/2026			263,010				263,013

 

See Notes to Financial Statements.

14	www.blackstone-credit.com

Blackstone Senior Floating Rate 2027 Term Fund

Portfolio of Investments

June 30, 2023 (Unaudited)

 

		Principal Amount				Value
Containers & Packaging (continued)
LABL, Inc., First Lien Term Loan, 1M US SOFR + 5.00%, 10/29/2028		$	562,857			$	558,250
Reynolds Consumer Products LLC, First Lien Initial Term Loan, 1M US SOFR + 1.75%, 02/04/2027			1,685,067				1,685,260
Strategic Materials Holding Corp., Second Lien Initial Term Loan, 3M US SOFR + 7.75%, 1.00% Floor, 10/31/2025			800,000				80,000
Tekni-Plex, Inc., First Lien Tranche B-3 Initial Term Loan, 3M US L + 4.00%, 0.50% Floor, 09/15/2028			1,183,275				1,167,218
							3,753,741
Distributors - 0.75%
LBM Acquisition LLC, First Lien Initial Term Loan, 3M US L + 3.75%, 0.75% Floor, 12/17/2027			1,451,458				1,397,783
Diversified Consumer Services - 4.85%
Element Materials Technology Group Holdings DTL, First Lien Term Loan, 3M US SOFR + 4.25%, 06/22/2029			568,441				558,494
Element Materials Technology Group Holdings TL, First Lien Term Loan, 3M US SOFR + 4.25%, 06/22/2029			1,231,623				1,210,069
Loyalty Ventures, Inc., First Lien Term Loan, PRIME + 3.50%, 11/03/2027(c)			490,359				60,804
McKissock Investment Holdings, LLC, First Lien Term Loan, 3M US SOFR + 5.00%, 03/12/2029			229,683				222,793
Prime Security Services Borrower LLC, First Lien 2021 Refinancing B-1 Term Loan, 1M US  SOFR + 2.75%, 0.75% Floor, 09/23/2026			1,987,782				1,989,700
Rinchem Company, Inc., First Lien Term Loan, 3M US SOFR + 4.25%, 03/02/2029(b)			509,735				481,062
St. George's University Scholastic Services LLC, First Lien Term Loan B Term Loan, 1M US  SOFR + 3.25%, 0.50% Floor, 02/10/2029			1,769,622				1,758,571
TruGreen LP, First Lien Term Loan, 1M US SOFR + 4.00%, 0.75% Floor, 11/02/2027			1,339,695				1,236,538
Weld North Education LLC, First Lien Term Loan, 1M US SOFR + 3.75%, 0.50% Floor, 12/21/2027			1,557,437				1,533,881
							9,051,912
Diversified Telecommunication Services - 4.11%
Level 3 Financing, Inc., First Lien Term Loan, 1M US SOFR + 1.75%, 03/01/2027			2,919,606				2,727,103
Lumen Technologies, Inc., First Lien Term Loan, 1M US SOFR + 2.25%, 03/15/2027			1,440,801				1,115,720
Telenet Financing USD LLC, First Lien Term Loan, 1M US L + 2.00%, 04/30/2028			1,942,903				1,911,681
Telesat Canada, First Lien B-5 Term Loan, 3M US L + 2.75%, 12/07/2026			858,574				532,209
Zacapa S.A.R.L., First Lien Term Loan, 3M US SOFR + 4.00%, 03/22/2029			1,413,127				1,379,459
							7,666,172
Electric Utilities - 0.74%
Miron Technologies, Inc., First Lien Term Loan, 3M US SOFR + 2.75%, 10/20/2028			1,391,584				1,386,657
Electrical Equipment - 0.76%
Madison IAQ LLC, First Lien Initial Term Loan, 3M US L + 3.25%, 0.50% Floor, 06/21/2028			1,453,725				1,425,741
Electronic Equipment, Instruments & Components - 0.87%
Ingram Micro, Inc., First Lien Initial Term Loan, 3M US L + 3.50%, 0.50% Floor, 06/30/2028			1,220,116				1,217,835
LTI Holdings, Inc., First Lien Term Loan, 3M US L + 4.75%, 07/24/2026			417,311				407,400
							1,625,235
Energy Equipment & Services - 0.02%
EnergySolutions LLC, First Lien Initial Term Loan, 3M US L + 3.75%, 1.00% Floor, 05/09/2025			32,069				31,573
Entertainment - 1.54%
Amplify Finco Pty, Ltd., First Lien U.S. Dollar Term Loan, 3M US L + 4.15%, 0.75% Floor, 11/26/2026			1,367,822				1,364,402

 

See Notes to Financial Statements.

Semi-Annual Report | June 30, 2023

15

Blackstone Senior Floating Rate 2027 Term Fund

Portfolio of Investments

June 30, 2023 (Unaudited)

 

		Principal Amount				Value
Entertainment (continued)
CE Intermediate I LLC, First Lien Term Loan, 3M US L + 4.00%, 0.50% Floor, 11/10/2028(b)		$	860,193			$	847,291
NASCAR Holdings, Inc., TLB, First Lien Term Loan, 1M US SOFR + 2.50%, 10/19/2026			666,915				668,635
							2,880,328
Financial Services - 3.71%
FleetCor Technologies Operating Co. LLC, First Lien Term Loan, 1M US SOFR + 1.75%, 04/28/2028			1,190,895				1,183,601
Lereta, LLC, First Lien Term Loan, 1M US L + 5.25%, 07/30/2028			484,738				445,959
Mitchell International, Inc., First Lien Term Loan, 1M US L + 3.75%, 10/15/2028			1,500,908				1,470,424
Mitchell International, Inc., Second Lien Term Loan, 1M US L + 6.50%, 10/15/2029			862,371				765,355
Polaris Newco LLC, First Lien Dollar Term Loan, 3M US L + 4.00%, 0.50% Floor, 06/02/2028			1,727,808				1,595,337
The Citco Group Limited, TLB, First Lien Term Loan, 3M US SOFR + 3.50%, 04/27/2028(b)			1,467,801				1,469,636
							6,930,312
Food Products - 2.22%
CH Guenther 11/21 TL, First Lien Term Loan, 1M US SOFR + 3.00%, 12/08/2028(b)			1,280,000				1,272,000
Froneri International, Ltd., First Lien Facility B2 Term Loan, 1M US SOFR + 2.25%, 01/29/2027			1,731,082				1,724,374
Snacking Investments BidCo Pty, Ltd., First Lien Initial US Term Loan, 3M US SOFR + 4.00%, 1.00% Floor, 12/18/2026			1,159,996				1,156,736
							4,153,110
Ground Transportation - 2.48%
Avis Budget Car Rental LLC, First Lien Term Loan, 1M US SOFR + 1.75%, 08/06/2027			1,339,589				1,325,356
Uber Technologies, Inc., TLB, First Lien Term Loan, 3M US SOFR + 2.75%, 03/03/2030			1,562,669				1,564,528
XPO, Inc., TLB, First Lien Term Loan, 1M US SOFR + 2.00%, 05/24/2028			1,731,298				1,739,496
							4,629,380
Health Care Equipment & Supplies - 4.21%
Auris Luxembourg III SARL, First Lien Facility B2 Term Loan, 6M US L + 3.75%, 02/27/2026			2,272,865				2,157,517
Carestream Health, Inc. TL 1L, First Lien Term Loan, 3M US L + 7.50%, 09/30/2027			153,319				112,229
Femur Buyer, Inc., First Lien Initial Term Loan, 3M US L + 4.50%, 03/05/2026			573,094				530,112
Resonetics LLC, First Lien Initial Term Loan, 3M US L + 4.00%, 0.75% Floor, 04/23/2028			1,000,000				974,065
Tecostar Holdings, Inc., First Lien 2017 Term Loan, 3M US L + 3.50%, 1.00% Floor, 05/01/2024			2,005,765				1,985,708
Viant Medical Holdings, Inc., First Lien Initial Term Loan, 1M US L + 3.75%, 07/02/2025			828,958				805,992
YI LLC, First Lien Initial Term Loan, 1M US L + 4.00%, 1.00% Floor, 11/07/2024			1,341,459				1,288,921
							7,854,544
Health Care Providers & Services - 11.21%
Covenant Surgical Partners, Inc., First Lien Delayed Draw Term Loan, 6M US L + 4.00%, 07/01/2026			269,360				210,774
Covenant Surgical Partners, Inc., First Lien Initial Term Loan, 3M US L + 4.00%, 07/01/2026			1,296,460				1,014,480
DaVita, Inc., First Lien B Term Loan, 1M US L + 1.75%, 08/12/2026			958,633				946,267
Electron Bidco, Inc., First Lien Term Loan, 1M US SOFR + 3.00%, 11/01/2028			845,718				843,337
Envision Healthcare Corp., First Lien Term Loan:
3M US SOFR + 4.25%, 03/31/2027(c)			1,434,202				324,044
3M US SOFR + 7.88%, 03/31/2027(c)			222,266				244,770
Global Medical Response, Inc., First Lien 2018 New Term Loan, 1M US SOFR + 4.25%, 1.00% Floor, 03/14/2025			2,318,841				1,315,942
Heartland Dental LLC, First Lien 2021 Incremental Term Loan, 3M US L + 4.00%, 04/30/2025			49,685				49,250
Heartland Dental, LLC, TL, First Lien Term Loan, 1M US SOFR + 5.00%, 04/28/2028			1,722,223				1,665,528
LifePoint Health, Inc., First Lien B Term Loan, 3M US L + 3.75%, 11/16/2025			1,392,207				1,292,824
Loire UK Midco 3, Ltd., First Lien Facility B2 Term Loan, 1M US L + 3.50%, 0.75% Floor, 04/21/2027			932,556				909,242

 

See Notes to Financial Statements.

16	www.blackstone-credit.com

Blackstone Senior Floating Rate 2027 Term Fund

Portfolio of Investments

June 30, 2023 (Unaudited)

 

		Principal Amount				Value
Health Care Providers & Services (continued)
Medical Solutions LLC, First Lien Term Loan, 3M US SOFR + 3.50%, 11/01/2028		$	66,395			$	62,544
NAPA Management Services Corp., First Lien Term Loan, 3M US SOFR + 5.25%, 0.75% Floor, 02/23/2029			921,121				645,245
National Mentor Holdings, Inc., TL, First Lien Term Loan, 1M US L + 3.75%, 03/02/2028			2,224,538				1,692,740
National Mentor Holdings, Inc., TLC, First Lien Term Loan, 3M US SOFR + 3.75%, 03/02/2028			63,269				48,144
Onex TSG Intermediate Corp., First Lien Initial Term Loan, 3M US SOFR + 4.75%, 0.75% Floor, 02/28/2028			1,388,271				1,240,767
Pathway Vet Alliance LLC, First Lien 2021 Replacement Term Loan, 1M US L + 3.75%, 03/31/2027			1,515,238				1,342,251
Pediatric Associates Holding Co. LLC, First Lien Term Loan:
3M US L + 1.88%, 12/29/2028(d)			159,779				156,703
3M US L + 3.25%, 0.50% Floor, 12/29/2028			1,238,844				1,214,997
PetVet Care Centers LLC, First Lien 2021 Replacement Term Loan, 1M US L + 3.50%, 0.75% Floor, 02/14/2025			1,593,992				1,564,503
PetVet Care Centers LLC, Second Lien Initial Term Loan, 1M US L + 6.25%, 02/13/2026			1,120,000				1,029,000
Phoenix Guarantor, Inc., First Lien Tranche B-3 Term Loan, 3M US L + 3.50%, 03/05/2026			1,284,438				1,271,754
Radiology Partners, Inc., First Lien Term Loan, 1M US SOFR + 4.25%, 07/09/2025			913,380				692,744
Radnet Management, Inc., First Lien Initial Term Loan, 1M US SOFR + 3.00%, 0.75% Floor, 04/23/2028			1,147,081				1,146,273
							20,924,123
Health Care Technology - 2.98%
AthenaHealth Group, Inc. Delayed Draw, First Lien Term Loan, 3M US L + 3.50%, 02/15/2029(d)			43,570				42,045
AthenaHealth Group, Inc., First Lien Term Loan, 1M US L + 5.80%, 02/15/2029			1,779,809				1,717,516
GHX Ultimate Parent Corp, TL, First Lien Term Loan, 3M US L + 0.00%, 06/30/2027			1,197,066				1,200,436
Project Ruby Ultimate Parent Corp., First Lien Closing Date Term Loan, 1M US L + 3.25%, 0.75% Floor, 03/10/2028			735,960				720,648
Verscend Holding Corp., First Lien B-1 Term Loan, 1M US L + 4.00%, 08/27/2025			1,882,807				1,884,567
							5,565,212
Hotels, Restaurants & Leisure - 5.96%
1011778 B.C. Unlimited Liability Company, First Lien B-4 Term Loan, 1M US L + 1.75%, 11/19/2026			1,339,589				1,332,328
Aramark Services, Inc., First Lien Term Loan, 1M US L + 2.50%, 04/06/2028			1,140,790				1,141,360
Bally's Corp., First Lien Term Loan, 1M US L + 3.25%, 0.50% Floor, 10/02/2028			1,378,954				1,350,279
Caesars Entertainment, Inc., First Lien Term Loan, 1M US SOFR + 3.25%, 0.50% Floor, 02/06/2030			1,327,254				1,328,987
Carnival Corp., First Lien Term Loan, 1M US SOFR + 3.25%, 0.75% Floor, 10/18/2028			1,379,803				1,370,027
Fertitta Entertainment, LLC, First Lien Term Loan, 1M US SOFR + 4.00%, 01/27/2029			1,144,207				1,131,454
Flutter Financing B.V., First Lien Term Loan, 3M US SOFR + 3.25%, 0.50% Floor, 07/22/2028			1,233,082				1,236,794
IRB Holding Corp., First Lien Term Loan, 3M US SOFR + 3.00%, 0.75% Floor, 12/15/2027			995,486				989,886
Whatabrands LLC, First Lien Initial B Term Loan, 1M US SOFR + 3.25%, 0.50% Floor, 08/03/2028			1,255,601				1,249,812
							11,130,927
Independent Power and Renewable Electricity Producers - 0.80%
Calpine Corp., First Lien Term Loan, 1M US L + 2.00%, 04/05/2026			1,339,535				1,339,950
Eastern Power LLC, First Lien Term Loan, 1M US SOFR + 3.75%, 1.00% Floor, 10/02/2025			156,027				150,752
							1,490,702
Industrial Conglomerates - 4.33%
Bettcher Industries, Inc., First Lien Term Loan, 1M US SOFR + 4.00%, 12/14/2028			836,463				815,033
Engineered Machinery Holdings, Inc., First Lien Term Loan, 3M US L + 3.50%, 0.75% Floor, 05/19/2028			1,431,601				1,406,548

 

See Notes to Financial Statements.

Semi-Annual Report | June 30, 2023

17

Blackstone Senior Floating Rate 2027 Term Fund

Portfolio of Investments

June 30, 2023 (Unaudited)

 

		Principal Amount				Value
Industrial Conglomerates (continued)
Justrite Safety Group, First Lien Delayed Draw Term Loan, 1M US SOFR + 4.50%, 06/28/2026		$	74,467			$	70,720
Justrite Safety Group, First Lien Initial Term Loan, 1M US SOFR + 4.50%, 06/28/2026			1,377,474				1,308,166
Redwood Star Merger Sub, Inc., First Lien Term Loan, 1M US SOFR + 4.50%, 04/05/2029			1,462,310				1,447,080
Tailwind Smith Cooper Intermediate Corp., First Lien Initial Term Loan, 3M US SOFR + 5.00%, 05/28/2026			1,473,937				1,436,720
TK Elevator Midco GmbH, First Lien Facility B1 Term Loan, 6M US L + 3.50%, 0.50% Floor,  07/30/2027			1,610,705				1,600,244
							8,084,511
Insurance - 3.34%
AmWINS Group, Inc., First Lien Term Loan:
1M US L + 2.25%, 0.75% Floor, 02/19/2028			1,746,652				1,733,561
1M US SOFR + 2.75%, 0.75% Floor, 02/19/2028			226,092				225,833
Broadstreet Partners, Inc., TLB3, First Lien Term Loan, 3M US SOFR + 4.00%, 01/27/2029			1,539,785				1,534,011
HIG Finance 2, Ltd., First Lien 2021 Dollar Refinancing Term Loan, 1M US L + 3.25%, 0.75% Floor, 11/12/2027			378,061				376,643
Hyperion Refinance S.a r.l. TL, First Lien Term Loan, 3M US SOFR + 0.00%, 0.50% Floor, 04/18/2030			649,535				649,129
NFP Corp., First Lien Closing Date Term Loan, 1M US SOFR + 3.25%, 02/15/2027			1,758,269				1,726,242
							6,245,419
Interactive Media & Services - 1.11%
Adevinta ASA, First Lien Facility B2 Term Loan, 3M US L + 2.75%, 0.75% Floor, 06/26/2028			372,838				373,978
MH Sub I LLC, First Lien Term Loan, 1M US SOFR + 4.25%, 05/03/2028			1,120,000				1,076,040
MH Sub I LLC, Second Lien 2021 Replacement Term Loan, 1M US SOFR + 6.25%, 02/23/2029			705,038				617,021
							2,067,039
IT Services - 3.44%
AG Group Holdings, Inc., First Lien Term Loan, 3M US SOFR + 4.00%, 12/29/2028(b)			1,349,546				1,319,181
Dcert Buyer, Inc., Second Lien First Amendment Refinancing Term Loan, 6M US SOFR + 7.00%, 02/19/2029			1,581,655				1,457,764
Newfold Digital Holdings Group, Inc., First Lien Initial Term Loan, 3M US L + 3.50%, 0.75% Floor, 02/10/2028			2,356,612				2,200,487
Vaco Holdings, LLC, First Lien Term Loan, 3M US SOFR + 5.00%, 01/21/2029			1,133,674				1,036,609
World Wide Technology Holding Co., LLC, TL, First Lien Term Loan, 1M US SOFR + 3.25%, 03/01/2030			411,432				412,204
							6,426,245
Leisure Products - 1.01%
Recess Holdings, Inc., First Lien Initial Term Loan, 3M US L + 3.75%, 1.00% Floor, 09/30/2024			1,888,864				1,892,405
Life Sciences Tools & Services - 2.36%
Catalent Pharma Solutions, Inc., First Lien Term Loan, 1M US L + 2.00%, 0.50% Floor, 02/22/2028			1,393,906				1,368,202
Curia Global, Inc., First Lien 2021 Term Loan, 3M US SOFR + 3.75%, 0.75% Floor, 08/30/2026			1,520,914				1,315,043
Maravai Intermediate Holdings LLC, First Lien Term Loan, 1M US L + 3.25%, 0.50% Floor, 10/19/2027			345,580				345,796
Parexel International Corporation, First Lien Term Loan, 3M US L + 3.25%, 0.50% Floor, 11/15/2028			1,392,025				1,382,977
							4,412,018
Machinery - 0.97%
Pro Mach Group, Inc., First Lien Closing Date Initial Term Loan, 3M US L + 4.00%, 1.00% Floor, 08/31/2028			1,712,844				1,710,891

 

See Notes to Financial Statements.

18	www.blackstone-credit.com

Blackstone Senior Floating Rate 2027 Term Fund

Portfolio of Investments

June 30, 2023 (Unaudited)

 

		Principal Amount				Value
Machinery (continued)
Titan Acquisition, Ltd., First Lien Initial Term Loan, 3M US L + 3.00%, 03/28/2025		$	99,215			$	97,086
							1,807,977
Media - 7.80%
Champ Acquisition Corp., First Lien Initial Term Loan, 6M US L + 5.50%, 12/19/2025			1,323,727				1,325,547
Charter Communications Operating LLC, First Lien Term Loan, 1M US SOFR + 1.75%, 02/01/2027			1,044,588				1,039,579
Cogeco Communications USA II LP, First Lien Term Loan, 1M US L + 2.00%, 01/03/2025			1,436,206				1,436,802
iHeartCommunications, Inc., First Lien New Term Loan, 1M US SOFR + 3.00%, 05/01/2026			1,400,000				1,216,166
Radiate Holdco, LLC,, First Lien Term Loan, 1M US L + 3.25%, 09/25/2026			1,290,176				1,080,039
Univision Communications, Inc., First Lien Term Loan:
1M US L + 3.25%, 0.75% Floor, 03/15/2026			1,458,481				1,448,322
3M US SOFR + 4.25%, 06/24/2029			216,545				216,455
UPC Financing Partnership, First Lien Facility AT Term Loan, 1M US L + 2.25%, 04/30/2028			2,182,983				2,152,967
Virgin Media Bristol LLC, First Lien Term Loan:
1M US L + 2.50%, 01/31/2028			1,694,655				1,682,690
1M US L + 3.25%, 01/31/2029			550,000				548,427
Ziggo Financing Partnership, First Lien I Facility Term Loan, 1M US L + 2.50%, 04/30/2028			2,450,861				2,417,603
							14,564,597
Mortgage Real Estate Investment - 0.30%
Blackstone Mortgage Trust, Inc., First Lien Term Loan:
1M US L + 2.75%, 0.50% Floor, 04/23/2026			297,716				281,341
1M US SOFR + 2.25%, 04/23/2026			297,680				279,969
							561,310
Oil, Gas & Consumable Fuels - 1.68%
Buckeye Partners LP, First Lien Term Loan, 1M US L + 2.25%, 11/01/2026			754,198				750,035
Freeport LNG, First Lien Term Loan, 3M US L + 3.50%, 12/21/2028			2,021,334				1,984,101
Whitewater Whistler Holdings, LLC TLB 1L, First Lien Term Loan, 3M US SOFR + 3.25%, 02/15/2030			410,495				410,751
							3,144,887
Passenger Airlines - 2.71%
Air Canada, First Lien B Term Loan, 3M US L + 3.50%, 0.75% Floor, 08/11/2028			895,489				896,689
American Airlines, Inc., First Lien 2020 Term Loan, 3M US SOFR + 1.75%, 01/29/2027			430,522				420,297
American Airlines, Inc., First Lien Term Loan, 6M US SOFR + 2.75%, 02/15/2028			608,917				598,809
Apple Bidco LLC, First Lien Term Loan, 1M US SOFR + 4.00%, 0.50% Floor, 09/22/2028			649,531				647,095
Brown Group Holding LLC, First Lien Term Loan, 1M US SOFR + 2.50%, 0.50% Floor, 06/07/2028			1,587,010				1,565,022
United AirLines, Inc., First Lien Class B Term Loan, 3M US L + 3.75%, 0.75% Floor, 04/21/2028			935,368				936,411
							5,064,323
Pharmaceuticals - 1.26%
Elanco Animal Health, Inc., First Lien B Term Loan, 1M US SOFR + 1.75%, 08/01/2027			1,392,267				1,368,773
Padagis LLC, First Lien Initial Term Loan, 3M US L + 4.75%, 0.50% Floor, 07/06/2028			1,040,524				987,197
							2,355,970
Professional Services - 8.67%
AlixPartners, LLP, First Lien USD B Term Loan, 1M US SOFR + 2.50%, 0.50% Floor, 02/04/2028			1,342,506				1,341,331
AqGen Island Holdings, Inc., First Lien Term Loan, 3M US L + 6.50%, 08/02/2029			1,865,513				1,678,962
CoreLogic, Inc., First Lien Initial Term Loan, 1M US L + 3.50%, 0.50% Floor, 06/02/2028			1,835,537				1,661,619
CoreLogic, Inc., Second Lien Initial Term Loan, 1M US L + 6.50%, 0.50% Floor, 06/04/2029			567,442				462,465

 

See Notes to Financial Statements.

Semi-Annual Report | June 30, 2023

19

Blackstone Senior Floating Rate 2027 Term Fund

Portfolio of Investments

June 30, 2023 (Unaudited)

 

		Principal Amount				Value
Professional Services (continued)
Deerfield Dakota Holding LLC, Second Lien 2021 Replacement Term Loan, 3M US L + 6.75%, 0.75% Floor, 04/07/2028		$	304,000			$	285,096
Dun & Bradstreet Corp., First Lien Initial Borrowing Term Loan, 1M US SOFR + 3.25%, 02/06/2026			933,432				935,416
EP Purcasher, LLC, First Lien Term Loan, 3M US L + 3.50%, 11/06/2028			149,621				146,816
Equiniti Group PLC, First Lien Term Loan, 6M US SOFR + 4.50%, 12/11/2028			1,139,814				1,143,376
Galaxy US Opco Inc. TL, First Lien Term Loan, 1M US SOFR + 4.75%, 04/29/2029			654,423				616,794
Inmar, Inc., TL, First Lien Term Loan, 1M US SOFR + 5.25%, 05/01/2026			593,701				578,116
Minotaur Acquisition, Inc., First Lien B Term Loan, 1M US SOFR + 4.75%, 03/27/2026			1,308,944				1,290,541
National Intergovernmental Purchasing Alliance Company, Second Lien Initial Term Loan, 3M US SOFR + 7.50%, 05/26/2026			1,500,094				1,410,088
Outcomes Group Holdings, Inc., Second Lien Initial Term Loan, 1M US L + 7.50%, 10/26/2026			162,722				160,281
Output Services Group, Inc. TLA 1L, First Lien Term Loan, 3M US SOFR + 5.25%, 1.50% PIK, 06/29/2026(c)(e)			590,454				160,899
Trans Union LLC, First Lien Term Loan, 1M US SOFR + 1.75%, 11/16/2026			1,784,178				1,781,823
TransUnion 11/21 B6 TLB, First Lien Term Loan, 1M US L + 2.25%, 12/01/2028			344,223				343,810
TRC Companies, First Lien Term Loan, 3M US L + 3.75%, 12/08/2028			572,176				564,308
TRC Companies, Second Lien Term Loan, 1M US L + 6.75%, 12/07/2029			713,846				658,523
VT Topco, Inc., First Lien 2021 Term Loan, 1M US SOFR + 3.75%, 0.75% Floor, 08/01/2025			975,405				964,310
							16,184,574
Semiconductors & Semiconductor Equipment - 0.58%
Coherent Corp., First Lien Term Loan, 1M US SOFR + 2.75%, 0.50% Floor, 07/02/2029			1,082,639				1,082,303
Software - 13.28%
Apttus Corp., First Lien Initial Term Loan, 3M US L + 4.25%, 0.75% Floor, 05/08/2028			576,919				566,702
CDK Global, Inc., First Lien Term Loan, 3M US SOFR + 4.50%, 07/06/2029			1,697,001				1,694,235
Connectwise, LLC, First Lien Term Loan, 1M US L + 3.50%, 0.50% Floor, 09/29/2028			1,619,962				1,581,496
Cornerstone OnDemand, Inc., First Lien Initial Term Loan, 3M US SOFR + 3.75%, 0.50% Floor, 10/16/2028			1,789,019				1,671,624
DTI Holdco, Inc. TL, First Lien Term Loan, 3M US SOFR + 4.75%, 04/26/2029			755,409				705,125
Fiserv Investment Solutions, Inc., First Lien Initial Term Loan, 3M US L + 4.00%, 02/18/2027			900,286				877,779
Greeneden U.S. Holdings I LLC, First Lien Initial Dollar (2020) Term Loan, 1M US SOFR + 4.00%, 0.75% Floor, 12/01/2027			1,340,041				1,338,245
Help/Systems Holdings, Inc., First Lien Seventh Amendment Refinancing Term Loan, 3M US  SOFR + 4.00%, 0.75% Floor, 11/19/2026			2,074,472				1,898,141
Hyland Software, Inc., Second Lien 2021 Refinancing Term Loan, 1M US L + 6.25%, 0.75% Floor, 07/07/2025			765,110				739,288
Imperva, Inc., First Lien Term Loan, 3M US L + 4.00%, 1.00% Floor, 01/12/2026			1,548,622				1,406,343
Ivanti Software, Inc., First Lien First Amendment Term Loan, 1M US L + 4.00%, 0.75% Floor, 12/01/2027			249,099				209,204
Ivanti Software, Inc., Second Lien Term Loan, 3M US L + 7.25%, 12/01/2028			537,313				356,643
LI Group Holdings, Inc., First Lien 2021 Term Loan, 1M US L + 3.75%, 0.75% Floor, 03/11/2028			1,566,383				1,567,362
LTI Holdings, Inc., Second Lien Initial Term Loan, 3M US L + 6.75%, 09/06/2026			468,085				401,189
Magenta Buyer LLC, First Lien Initial Term Loan, 3M US L + 4.75%, 0.75% Floor, 07/27/2028			1,694,302				1,281,316
Mitnick Corporate Purchaser Inc., First Lien Term Loan, 3M US SOFR + 4.75%, 05/02/2029			403,917				392,304
Park Place Technologies LLC, First Lien Closing Date Term Loan, 1M US SOFR + 5.00%, 1.00% Floor, 11/10/2027			885,624				863,484
Perforce Software, Inc., First Lien New Term Loan, 1M US L + 3.75%, 07/01/2026			323,584				307,203
Proofpoint, Inc., TL, First Lien Term Loan, 1M US SOFR + 3.25%, 08/31/2028			1,144,192				1,121,783
Quartz Acquireco, LLC, TL, First Lien Term Loan, 1M US SOFR + 3.50%, 04/14/2030(b)			1,383,043				1,384,772
Quest Borrower Ltd., First Lien Term Loan, 3M US SOFR + 4.25%, 02/01/2029			1,394,341				1,089,329
Skopima Merger Sub Inc., First Lien Initial Term Loan, 1M US L + 4.00%, 05/12/2028			812,368				791,624

 

See Notes to Financial Statements.

20	www.blackstone-credit.com

Blackstone Senior Floating Rate 2027 Term Fund

Portfolio of Investments

June 30, 2023 (Unaudited)

 

		Principal Amount				Value
Software (continued)
SS&C Technologies, Inc., First Lien Term Loan:
1M US L + 2.25%, 0.50% Floor, 03/22/2029		$	198,923			$	198,592
1M US L + 2.25%, 0.50% Floor, 03/22/2029			299,774				299,275
Vision Solutions, Inc., First Lien Term Loan, 3M US L + 4.00%, 0.75% Floor, 04/24/2028			2,149,314				2,047,447
							24,790,505
Specialty Retail - 1.24%
EG America LLC, First Lien Term Loan:
1M US SOFR + 4.00%, 02/28/2028(b)			79,167				78,821
1M US SOFR + 4.00%, 0.50% Floor, 02/28/2028(b)			118,750				113,703
1M US SOFR + 4.00%, 02/28/2028(b)			523,316				520,045
1M US SOFR + 4.00%, 0.50% Floor, 02/28/2028(b)			784,973				752,593
1M US SOFR + 4.25%, 02/28/2028(b)			88,138				87,587
1M US SOFR + 4.25%, 0.50% Floor, 02/28/2028(b)			132,207				126,753
1M US SOFR + 5.50%, 0.50% Floor, 02/29/2028(b)			666,040				641,064
							2,320,566
Technology Hardware, Storage & Peripherals - 0.69%
Project Castle, Inc., First Lien Term Loan, 3M US SOFR + 5.50%, 06/01/2029			1,512,400				1,285,540
Textiles, Apparel & Luxury Goods - 0.44%
S&S Holdings LLC, First Lien Initial Term Loan, 3M US L + 5.00%, 0.50% Floor, 03/11/2028			932,558				818,320
Trading Companies & Distributors - 2.72%
Foundation Building Materials, Inc., First Lien Initial Term Loan, 3M US L + 3.25%, 0.50% Floor, 01/31/2028			1,791,184				1,744,676
Park River Holdings, Inc., First Lien Initial Term Loan, 6M US L + 3.25%, 0.75% Floor, 12/28/2027			1,731,467				1,664,866
SRS Distribution, Inc., First Lien Term Loan, 1M US SOFR + 3.50%, 06/02/2028			997,475				975,660
Windsor Holdings III, LLC, TL, First Lien Term Loan, 6M US SOFR + 4.50%, 06/21/2030			715,594				703,876
							5,089,078
Wireless Telecommunication Services - 0.89%
CCI Buyer, Inc., First Lien Initial Term Loan, 3M US SOFR + 4.00%, 0.75% Floor, 12/17/2027			1,683,558				1,655,148
TOTAL FLOATING RATE LOAN INTERESTS
(Cost $264,979,902)							255,984,372
COLLATERALIZED LOAN OBLIGATION SECURITIES(a)  - 4.39%
Banks - 0.23%
Wellfleet CLO 2020-1, Ltd., 3M US L + 7.24%, 04/15/2033(b)(f)			500,000				429,321
Consumer Finance - 0.47%
Octagon Investment Partners 43, Ltd., 3M US L + 6.60%, 10/25/2032(b)(f)			500,000				447,835
PPM CLO 3, Ltd., 3M US L + 6.61%, 04/17/2034(b)(f)			500,000				423,523
							871,358
Financial Services - 3.69%
Allegro CLO XII, Ltd., 3M US L + 7.10%, 01/21/2032(b)(f)			1,000,000				930,040
Eaton Vance CLO 2013-1, Ltd., 3M US L + 6.80%, 01/15/2034(b)(f)			500,000				468,982
Galaxy XXVII CLO, Ltd., 3M US L + 5.78%, 05/16/2031(b)(f)			625,000				552,967
HPS Loan Management CLO 6-2015, Ltd., 3M US L + 5.10%, 02/05/2031(b)(f)			834,000				695,749
Neuberger Berman CLO XVII, Ltd., 3M US L + 7.20%, 04/22/2029(b)(f)			500,000				445,123
Park Avenue Institutional Advisers CLO, Ltd. 2022-1, 3M US SOFR + 7.29%, 04/20/2035(b)(f)			1,000,000				949,074

 

See Notes to Financial Statements.

Semi-Annual Report | June 30, 2023

21

Blackstone Senior Floating Rate 2027 Term Fund

Portfolio of Investments

June 30, 2023 (Unaudited)

 

		Principal Amount				Value
Financial Services (continued)
Rad CLO 2, Ltd., 3M US L + 6.00%, 10/15/2031(b)(f)		$	750,000			$	657,197
Rad CLO 5, Ltd., 3M US L + 6.70%, 07/24/2032(b)(f)			500,000				461,925
Romark CLO IV, Ltd., 3M US L + 6.95%, 07/10/2034(b)(f)			1,000,000				906,187
Sound Point CLO XXXII, Ltd., 3M US L + 6.70%, 10/25/2034(b)(f)			1,000,000				821,274
							6,888,518
TOTAL COLLATERALIZED LOAN OBLIGATION SECURITIES
(Cost $9,135,116)							8,189,197
CORPORATE BONDS - 2.96%
Aerospace & Defense - 0.18%
Bombardier, Inc., 7.500%, 02/01/2029(f)			109,000				107,864
Spirit AeroSystems, Inc., 4.600%, 06/15/2028			8,000				6,720
TransDigm, Inc.:
4.625%, 01/15/2029			15,000				13,361
4.880%, 05/01/2029			110,000				98,391
Triumph Group, Inc., 7.750%, 08/15/2025			114,000				110,955
							337,291
Air Freight & Logistics - 0.02%
Allegiant Travel Co., 7.250%, 08/15/2027(f)			30,000				29,920
Automobile Components - 0.02%
Patrick Industries, Inc., 4.750%, 05/01/2029(f)			45,000				38,703
Automobiles - 0.06%
Ford Motor Credit Co. LLC, 6.800%, 05/12/2028			112,000				112,224
Broadline Retail - 0.02%
Nordstrom, Inc., 5.000%, 01/15/2044			9,000				6,264
Rakuten Group, Inc., 10.250%, 11/30/2024(f)			40,000				39,699
							45,963
Building Products - 0.05%
Griffon Corp., 5.750%, 03/01/2028			40,000				37,453
JELD-WEN, Inc., 4.880%, 12/15/2027(f)			73,000				64,745
							102,198
Chemicals - 0.04%
Chemours Co., 4.630%, 11/15/2029(f)			15,000				12,690
FMG Resources August 2006 Pty, Ltd.:
4.375%, 04/01/2031(f)			5,000				4,276
6.125%, 04/15/2032(f)			54,000				51,540
Valvoline, Inc., 3.630%, 06/15/2031(f)			15,000				12,209
							80,715
Commercial Services & Supplies - 0.01%
Deluxe Corp., 8.000%, 06/01/2029(f)			10,000				7,840
GFL Environmental, Inc., 4.000%, 08/01/2028(f)			10,000				8,953
							16,793
Communications Equipment - 0.04%
CommScope, Inc., 8.250%, 03/01/2027(f)			20,000				16,027

 

See Notes to Financial Statements.

22	www.blackstone-credit.com

Blackstone Senior Floating Rate 2027 Term Fund

Portfolio of Investments

June 30, 2023 (Unaudited)

 

		Principal Amount				Value
Communications Equipment (continued)
Viasat, Inc., 6.500%, 07/15/2028(f)		$	62,000			$	52,601
							68,628
Construction & Engineering - 0.03%
Brundage-Bone Concrete Pumping Holdings, Inc., 6.000%, 02/01/2026(f)			15,000				14,219
Great Lakes Dredge & Dock Corp., 5.250%, 06/01/2029(f)			14,000				11,706
Tutor Perini Corp., 6.875%, 05/01/2025(f)			32,000				26,579
							52,504
Consumer Finance - 0.23%
Enova International, Inc., 8.500%, 09/15/2025(f)			15,000				14,624
FirstCash, Inc.:
4.630%, 09/01/2028(f)			55,000				49,184
5.625%, 01/01/2030(f)			20,000				18,094
Goeasy, Ltd., 4.375%, 05/01/2026(f)			60,000				54,788
Navient Corp.:
5.000%, 03/15/2027			20,000				17,910
4.880%, 03/15/2028			50,000				42,870
9.375%, 07/25/2030			19,000				18,916
5.625%, 08/01/2033			30,000				22,591
OneMain Finance Corp.:
3.500%, 01/15/2027			52,000				44,666
3.880%, 09/15/2028			60,000				49,104
5.375%, 11/15/2029			15,000				12,767
SLM Corp.:
4.200%, 10/29/2025			60,000				55,806
3.125%, 11/02/2026			5,000				4,330
Synchrony Financial, 7.250%, 02/02/2033			9,000				8,114
World Acceptance Corp., 7.000%, 11/01/2026(f)			15,000				13,139
							426,903
Consumer Staples Distribution & Retail - 0.02%
Albertsons Cos. Inc / Safeway, Inc. / New Albertsons LP / Albertsons LLC, 6.500%, 02/15/2028(f)			30,000				30,084
Containers & Packaging - 0.00%
Cascades, Inc./Cascades USA, Inc., 5.380%, 01/15/2028(f)			10,000				9,357
Diversified Consumer Services - 0.02%
Adtalem Global Education, Inc., 5.500%, 03/01/2028(f)			25,000				22,716
WW International, Inc., 4.500%, 04/15/2029(f)			20,000				11,841
							34,557
Diversified REITs - 0.06%
Service Properties Trust:
4.750%, 10/01/2026			50,000				43,466
4.950%, 02/15/2027			80,000				68,499
							111,965
Diversified Telecommunication Services - 0.07%
Cogent Communications Group, Inc., 7.000%, 06/15/2027(f)			60,000				58,104
Hughes Satellite Systems Corp., 6.625%, 08/01/2026			80,000				74,872
							132,976

 

See Notes to Financial Statements.

Semi-Annual Report | June 30, 2023

23

Blackstone Senior Floating Rate 2027 Term Fund

Portfolio of Investments

June 30, 2023 (Unaudited)

 

		Principal Amount				Value
Electric Utilities - 0.01%
PG&E Corp., 5.000%, 07/01/2028		$	15,000			$	13,778
Energy Equipment & Services - 0.12%
Archrock Lp/fin Aplp 6 7/8 04/01/27, 6.875%, 04/01/2027(f)			2,000				1,922
Archrock Partners LP / Archrock Partners Finance Corp., 6.250%, 04/01/2028(f)			75,000				70,523
Enerflex, Ltd., 9.000%, 10/15/2027(f)			40,000				38,957
Oceaneering International, Inc., 6.000%, 02/01/2028			44,000				41,732
Transocean, Inc.:
8.000%, 02/01/2027(f)			25,000				22,691
7.500%, 04/15/2031			70,000				55,251
							231,076
Entertainment - 0.01%
Lions Gate Capital Holdings LLC, 5.500%, 04/15/2029(f)			20,000				14,507
Financial Services - 0.13%
Burford Capital Global Finance LLC, 6.875%, 04/15/2030(f)			18,000				16,426
MGIC Investment Corp., 5.250%, 08/15/2028			5,000				4,721
Nationstar Mortgage Holdings, Inc.:
6.000%, 01/15/2027(f)			55,000				51,231
5.500%, 08/15/2028(f)			70,000				61,409
PennyMac Financial Services, Inc.:
5.375%, 10/15/2025(f)			10,000				9,460
4.250%, 02/15/2029(f)			85,000				68,353
5.750%, 09/15/2031(f)			15,000				12,249
PHH Mortgage Corp., 7.875%, 03/15/2026(f)			25,000				22,353
							246,202
Food Products - 0.02%
Post Holdings, Inc., 4.625%, 04/15/2030(f)			40,000				35,097
Gas Utilities - 0.01%
Suburban Propane Partners LP/Suburban Energy Finance Corp., 5.000%, 06/01/2031(f)			25,000				20,967
Ground Transportation - 0.01%
XPO, Inc., 7.125%, 06/01/2031(f)			20,000				20,176
Health Care Providers & Services - 0.07%
CHS/Community Health Systems, Inc.:
6.875%, 04/15/2029(f)			11,000				6,882
6.125%, 04/01/2030(f)			35,000				20,890
DaVita, Inc.:
4.625%, 06/01/2030(f)			65,000				55,873
3.750%, 02/15/2031(f)			10,000				8,008
Encompass Health Corp., 4.750%, 02/01/2030			20,000				18,234
Tenet Healthcare Corp., 6.875%, 11/15/2031			15,000				14,984
							124,871
Health Care REITs - 0.01%
MPT Operating Partnership LP / MPT Finance Corp., 4.625%, 08/01/2029			15,000				11,353
Health Care Technology - 0.04%
MPH Acquisition Holdings LLC, 5.750%, 11/01/2028(f)			112,000				84,435

 

See Notes to Financial Statements.

24	www.blackstone-credit.com

Blackstone Senior Floating Rate 2027 Term Fund

Portfolio of Investments

June 30, 2023 (Unaudited)

 

		Principal Amount				Value
Hotels, Restaurants & Leisure - 0.27%
1011778 BC ULC / New Red Finance, Inc.:
3.875%, 01/15/2028(f)		$	30,000			$	27,453
4.380%, 01/15/2028(f)			20,000				18,491
Bloomin' Brands, Inc. / OSI Restaurant Partners LLC, 5.125%, 04/15/2029(f)			10,000				8,947
Carnival Corp.:
7.625%, 03/01/2026(f)			113,000				110,777
5.750%, 03/01/2027(f)			3,000				2,764
Carrols Restaurant Group, Inc., 5.875%, 07/01/2029(f)			20,000				16,482
NCL Corp., Ltd.:
5.875%, 03/15/2026(f)			95,000				88,964
7.750%, 02/15/2029(f)			25,000				23,768
Royal Caribbean Cruises, Ltd.:
4.250%, 07/01/2026(f)			35,000				32,160
5.375%, 07/15/2027(f)			10,000				9,361
7.500%, 10/15/2027			15,000				15,083
3.700%, 03/15/2028			60,000				52,215
Station Casinos LLC, 4.500%, 02/15/2028(f)			30,000				26,964
Wynn Las Vegas LLC / Wynn Las Vegas Capital Corp., 5.250%, 05/15/2027(f)			75,000				71,133
							504,562
Household Durables - 0.14%
Beazer Homes USA, Inc.:
5.875%, 10/15/2027			37,000				34,559
7.250%, 10/15/2029			15,000				14,600
Century Communities, Inc., 3.880%, 08/15/2029(f)			33,000				28,637
M/I Homes, Inc., 3.950%, 02/15/2030			36,000				30,739
Taylor Morrison Communities, Inc., 5.750%, 01/15/2028(f)			75,000				72,589
Tempur Sealy International, Inc.:
4.000%, 04/15/2029(f)			50,000				43,341
3.880%, 10/15/2031(f)			15,000				12,240
TopBuild Corp.:
3.630%, 03/15/2029(f)			15,000				13,072
4.125%, 02/15/2032(f)			5,000				4,265
							254,042
Household Products - 0.02%
Energizer Holdings, Inc., 4.750%, 06/15/2028(f)			44,000				39,292
Interactive Media & Services - 0.06%
ANGI Group LLC, 3.875%, 08/15/2028(f)			32,000				26,166
Cinemark USA, Inc., 5.250%, 07/15/2028(f)			68,000				59,885
ZipRecruiter, Inc., 5.000%, 01/15/2030(f)			30,000				25,575
							111,626
IT Services - 0.03%
Gartner, Inc., 4.500%, 07/01/2028(f)			40,000				37,404
Unisys Corp., 6.875%, 11/01/2027(f)			25,000				18,034
							55,438
Leisure Products - 0.01%
Vista Outdoor, Inc., 4.500%, 03/15/2029(f)			25,000				20,276
Machinery - 0.02%
Allison Transmission, Inc., 3.750%, 01/30/2031(f)			37,000				31,290

 

See Notes to Financial Statements.

Semi-Annual Report | June 30, 2023

25

Blackstone Senior Floating Rate 2027 Term Fund

Portfolio of Investments

June 30, 2023 (Unaudited)

 

		Principal Amount				Value
Marine Transportation - 0.01%
Danaos Corp., 8.500%, 03/01/2028(f)		$	17,000			$	17,070
Media - 0.15%
CCO Holdings LLC / CCO Holdings Capital Corp.:
5.125%, 05/01/2027(f)			30,000				27,968
5.000%, 02/01/2028(f)			30,000				27,364
5.375%, 06/01/2029(f)			12,000				10,860
4.750%, 03/01/2030(f)			5,000				4,280
7.380%, 03/01/2031(f)			20,000				19,501
4.500%, 05/01/2032			13,000				10,393
Clear Channel Outdoor Holdings, Inc.:
7.750%, 04/15/2028(f)			33,000				25,946
7.500%, 06/01/2029(f)			8,000				5,929
DISH DBS Corp.:
5.875%, 11/15/2024			38,000				33,283
7.750%, 07/01/2026			10,000				6,144
Gray Television, Inc., 7.000%, 05/15/2027(f)			10,000				8,542
News Corp., 3.875%, 05/15/2029(f)			10,000				8,788
Nexstar Media, Inc.:
5.625%, 07/15/2027(f)			15,000				13,996
4.750%, 11/01/2028(f)			30,000				26,059
Scripps Escrow, Inc., 5.875%, 07/15/2027(f)			10,000				8,108
Townsquare Media, Inc., 6.875%, 02/01/2026(f)			33,000				31,588
Urban One, Inc., 7.375%, 02/01/2028(f)			12,000				10,467
							279,216
Metals & Mining - 0.07%
Eldorado Gold Corp., 6.250%, 09/01/2029(f)			35,000				31,391
IAMGOLD Corp., 5.750%, 10/15/2028(f)			30,000				22,486
Mineral Resources, Ltd., 8.000%, 11/01/2027(f)			35,000				34,987
New Gold, Inc., 7.500%, 07/15/2027(f)			15,000				14,026
SunCoke Energy, Inc., 4.880%, 06/30/2029(f)			28,000				23,548
Taseko Mines, Ltd., 7.000%, 02/15/2026(f)			13,000				11,862
							138,300
Mortgage Real Estate Investment - 0.09%
Apollo Commercial Real Estate Finance, Inc., 4.625%, 06/15/2029(f)			32,000				24,988
Rithm Capital Corp., 6.250%, 10/15/2025(f)			35,000				32,854
Starwood Property Trust, Inc.:
3.630%, 07/15/2026(f)			30,000				25,854
4.380%, 01/15/2027(f)			100,000				86,218
							169,914
Oil, Gas & Consumable Fuels - 0.41%
AmeriGas Partners LP / AmeriGas Finance Corp., 5.875%, 08/20/2026			42,000				39,543
Antero Midstream Partners LP / Antero Midstream Finance Corp., 5.750%, 03/01/2027(f)			100,000				96,534
Calumet Specialty Products Partners LP / Calumet Finance Corp., 9.750%, 07/15/2028(f)			11,000				10,831
CNX Resources Corp., 6.000%, 01/15/2029(f)			52,000				48,250
Crestwood Midstream Partners LP / Crestwood Midstream Finance Corp.:
5.625%, 05/01/2027(f)			30,000				28,470
6.000%, 02/01/2029(f)			15,000				14,022
Delek Logistics Partners LP / Delek Logistics Finance Corp., 7.125%, 06/01/2028(f)			25,000				23,187
Energean PLC, 6.500%, 04/30/2027(f)			10,000				9,139
EQM Midstream Partners LP, 6.500%, 07/15/2048			22,000				19,930

 

See Notes to Financial Statements.

26	www.blackstone-credit.com

Blackstone Senior Floating Rate 2027 Term Fund

Portfolio of Investments

June 30, 2023 (Unaudited)

 

		Principal Amount				Value
Oil, Gas & Consumable Fuels (continued)
Hess Midstream Operations LP:
5.130%, 06/15/2028(f)		$	100,000			$	93,683
4.250%, 02/15/2030(f)			20,000				17,470
MEG Energy Corp., 5.875%, 02/01/2029(f)			45,000				42,364
Northern Oil and Gas, Inc.:
8.125%, 03/01/2028(f)			30,000				29,430
8.750%, 06/15/2031(f)			11,000				10,821
NuStar Logistics LP, 6.000%, 06/01/2026			50,000				48,750
Parkland Corp.:
5.875%, 07/15/2027(f)			30,000				28,973
4.500%, 10/01/2029(f)			44,000				38,214
PBF Holding Co. LLC / PBF Finance Corp., 6.000%, 02/15/2028			25,000				23,391
Sunoco LP / Sunoco Finance Corp., 4.500%, 05/15/2029			93,000				82,614
Superior Plus LP / Superior General Partner, Inc., 4.500%, 03/15/2029(f)			30,000				26,327
Vital Energy, Inc., 9.500%, 01/15/2025			30,000				29,807
							761,750
Paper & Forest Products - 0.01%
Louisiana-Pacific Corp., 3.625%, 03/15/2029(f)			20,000				17,528
Passenger Airlines - 0.01%
American Airlines, Inc., 7.250%, 02/15/2028(f)			20,000				19,902
Personal Care Products - 0.03%
Edgewell Personal Care Co., 5.500%, 06/01/2028(f)			50,000				47,315
Professional Services - 0.01%
TriNet Group, Inc., 3.500%, 03/01/2029(f)			25,000				21,762
Real Estate Management & Development - 0.09%
Forestar Group, Inc., 3.850%, 05/15/2026(f)			45,000				41,400
Howard Hughes Corp.:
5.375%, 08/01/2028(f)			15,000				13,371
4.380%, 02/01/2031(f)			74,000				59,127
Kennedy-Wilson, Inc.:
4.750%, 03/01/2029			32,000				25,332
4.750%, 02/01/2030			5,000				3,776
Realogy Group LLC / Realogy Co.-Issuer Corp., 5.750%, 01/15/2029(f)			38,000				28,475
							171,481
Software - 0.09%
Fair Isaac Corp., 4.000%, 06/15/2028(f)			50,000				45,915
MicroStrategy, Inc., 6.125%, 06/15/2028(f)			30,000				26,925
Open Text Corp., 3.880%, 02/15/2028(f)			95,000				83,758
Pitney Bowes, Inc., 7.250%, 03/15/2029(f)			17,000				11,221
Science Applications International Corp., 4.880%, 04/01/2028(f)			8,000				7,451
							175,270
Specialized REITs - 0.00%(g)
Uniti Group LP / Uniti Group Finance, Inc. / CSL Capital LLC, 6.500%, 02/15/2029(f)			12,000				8,504
Specialty Retail - 0.10%
Asbury Automotive Group, Inc., 5.000%, 02/15/2032(f)			60,000				52,305
Bath & Body Works, Inc., 6.750%, 07/01/2036			30,000				27,034
Carvana Co., 5.500%, 04/15/2027(f)			20,000				13,406

 

See Notes to Financial Statements.

Semi-Annual Report | June 30, 2023

27

Blackstone Senior Floating Rate 2027 Term Fund

Portfolio of Investments

June 30, 2023 (Unaudited)

 

		Principal Amount				Value
Specialty Retail (continued)
Iron Mountain, Inc.:
7.000%, 02/15/2029(f)		$	17,000			$	17,047
4.875%, 09/15/2029(f)			20,000				17,921
5.625%, 07/15/2032(f)			57,000				51,075
							178,788
Technology Hardware, Storage & Peripherals - 0.04%
Seagate HDD Cayman, 8.250%, 12/15/2029(f)			27,000				28,225
Xerox Holdings Corp., 5.500%, 08/15/2028(f)			55,000				46,845
							75,070
TOTAL CORPORATE BONDS
(Cost $5,524,281)							5,531,639

 

		Shares				Value
COMMON STOCK - 0.22%
Health Care Equipment & Supplies - 0.22%
Carestream Health Holdings Inc(b)(h)			55,510				416,325
TOTAL COMMON STOCK
(Cost $1,051,360)							416,325
SHORT-TERM INVESTMENTS - 4.43%
Bank of New York Cash Reserve
(0.00% 7-Day Yield)			8,262,136				8,262,136
TOTAL SHORT-TERM INVESTMENTS
(Cost $8,262,136)							8,262,136
Total Investments- 149.10%
(Cost $288,952,795)							278,383,669
Liabilities in Excess of Other Assets - (5.72)%							(10,671,115	)
Leverage Facility - (43.38)%							(81,000,000	)
Net Assets - 100.00%						$	186,712,554

 

Amounts above are shown as a percentage of net assets as of June 30, 2023.

 

Investment Abbreviations:

LIBOR - London Interbank Offered Rate

SOFR - Secured Overnight Financing Rate

 

Reference Rates:

1M US L - 1 Month LIBOR as of June 30, 2023 was 5.22 %

3M US L - 3 Month LIBOR as of June 30, 2023 was 5.55%

6M US L - 6 Month LIBOR as of June 30, 2023 was 5.76%

1M US SOFR - 1 Month SOFR as of June 30, 2023 was 5.00%

3M US SOFR - 3 Month SOFR as of June 30, 2023 was 5.00%

6M US SOFR - 6 Month SOFR as of June 30, 2023 was 4.78%

PRIME - US Prime Rate as of June 30, 2023 was 8.25%

 

See Notes to Financial Statements.

28	www.blackstone-credit.com

Blackstone Senior Floating Rate 2027 Term Fund

Portfolio of Investments

June 30, 2023 (Unaudited)

 

(a)

Floating or variable rate security. The reference rate is described above. The rate in effect as of June 30, 2023 is based on the reference rate plus the displayed spread as of the security's last reset date. Where applicable, the reference rate is subject to a floor rate.

(b)

Level 3 assets valued using significant unobservable inputs as a result of unavailable quoted prices from an active market or the unavailability of other significant observable inputs.

(c)

Security is in default as of period end.

(d)

A portion of this position was not funded as of June 30, 2023. The Portfolio of Investments records only the funded portion of each position. As of June 30, 2023, the Fund has unfunded delayed draw loans in the amount of $203,941. Fair value of these unfunded delayed draws was $197,262.

(e)

Represents a payment-in-kind (“PIK”) security which may pay interest/dividend in additional par/shares.

(f)

Security exempt from registration under Rule 144A of the Securities Act of 1933. Total market value of Rule 144A securities amounts to $12,214,311, which represented approximately 6.54% of net assets as of June 30, 2023. Such securities may normally be sold to qualified institutional buyers in transactions exempt from registration.

(g)

Amount represents less than 0.005% of net assets.

(h)

Non-income producing security.

 

See Notes to Financial Statements.

Semi-Annual Report | June 30, 2023

29

Blackstone Long-Short Credit Income Fund

Portfolio of Investments

June 30, 2023 (Unaudited)

 

		Principal Amount				Value
FLOATING RATE LOAN INTERESTS(a) - 131.77%
Aerospace & Defense - 5.91%
Amentum Government Services Holdings LLC, First Lien Term Loan, 3M US SOFR + 4.00%, 02/15/2029(b)		$	1,555,032			$	1,523,931
Atlas CC Acquisition Corp., First Lien B Term Loan, 3M US SOFR + 4.25%, 0.75% Floor, 05/25/2028			1,944,498				1,699,462
Atlas CC Acquisition Corp., First Lien C Term Loan, 3M US SOFR + 4.25%, 0.75% Floor, 05/25/2028			395,490				345,652
Avolon TLB Borrower 1 (US) TL, First Lien Term Loan, 1M US SOFR + 2.50%, 06/22/2028			654,286				654,754
LSF11 Trinity BidCo, Inc., TL, First Lien Term Loan, 1M US SOFR + 4.50%, 06/14/2030(b)			921,387				920,236
Nordam Group LLC, First Lien Initial Term Loan, 1M US SOFR + 5.50%, 04/09/2026			1,378,800				1,184,045
Peraton Corp., First Lien B Term Loan, 1M US L + 3.75%, 0.75% Floor, 02/01/2028			2,010,054				1,978,827
TransDigm Inc., TLI, First Lien Term Loan, 3M US SOFR + 3.25%, 08/24/2028			853,037				853,531
Vertex Aerospace Corp., First Lien Term Loan, 1M US SOFR + 3.75%, 12/06/2028			539,327				539,891
							9,700,329
Air Freight & Logistics - 1.06%
Kenan Advantage Group, Inc., First Lien U.S. B-1 Term Loan, 6M US SOFR + 4.17826%, 0.75% Floor, 03/24/2026			797,959				797,604
WWEX UNI TopCo Holdings LLC, First Lien Initial Term Loan, 3M US SOFR + 4.00%, 0.75% Floor, 07/26/2028			984,891				937,907
							1,735,511
Automobile Components - 2.91%
Belron Luxembourg Sarl, First Lien Term Loan, 1M US SOFR + 2.85%, 0.50% Floor, 04/18/2029			322,860				323,468
Burgess Point Purchaser Corp., First Lien Term Loan, 1M US SOFR + 5.25%, 07/25/2029			1,293,957				1,231,226
Clarios Global LP, TL, First Lien Term Loan, 3M US SOFR + 3.75%, 05/06/2030			1,238,390				1,237,034
Mavis Tire Express Services Topco Corp., First Lien Term Loan, 1M US SOFR + 4.00%, 0.75% Floor, 05/04/2028			1,416,107				1,405,932
Phinia Inc., TL, First Lien Term Loan, 6M US SOFR + 3.75%, 06/08/2028			577,500				577,500
							4,775,160
Beverages - 0.82%
Triton Water Holdings, Inc., First Lien Initial Term Loan, 3M US SOFR + 3.50%, 0.50% Floor, 03/31/2028			1,390,148				1,347,359
Biotechnology - 1.26%
Grifols Worldwide Operations, TLB, First Lien Term Loan, 3M US SOFR + 2.00%, 11/15/2027			2,101,088				2,070,885
Broadline Retail - 0.85%
Pilot Travel Centers LLC, First Lien Term Loan, 1M US L + 2.00%, 08/04/2028			1,392,875				1,392,625
Building Products - 4.81%
Chariot Buyer LLC, First Lien Term Loan:
1M US SOFR + 3.25%, 0.50% Floor, 11/03/2028			1,024,628				1,003,131
3M US L + 7.51%, 0.50% Floor, 10/31/2029			1,150,713				1,150,425
Cornerstone Building Brands, Inc., First Lien Tranche B Term Loan, 1M US SOFR + 3.25%, 0.50% Floor, 04/12/2028			1,078,077				1,036,307
CP Atlas Buyer, Inc., First Lien B Term Loan, 3M US SOFR + 3.50%, 0.50% Floor, 11/23/2027			1,580,330				1,491,831
Kodiak Building Partners Inc. TLB, First Lien Term Loan, 3M US SOFR + 3.25%, 0.75% Floor, 03/12/2028			1,883,358				1,840,983

 

See Notes to Financial Statements.

30	www.blackstone-credit.com

Blackstone Long-Short Credit Income Fund

Portfolio of Investments

June 30, 2023 (Unaudited)

 

		Principal Amount				Value
Building Products (continued)
Oscar Acquisitionco LLC, First Lien Term Loan, 3M US SOFR + 4.50%, 0.50% Floor, 04/29/2029		$	1,390,032			$	1,360,494
							7,883,171
Capital Markets - 1.50%
Apex Group Treasury, Ltd., First Lien USD Term Loan, 3M US L + 3.75%, 0.50% Floor, 07/27/2028			560,980				554,669
Focus Financial Partners LLC, First Lien Term Loan:
1M US SOFR + 3.50%, 06/30/2028			478,163				476,191
3M US L + 2.50%, 0.50% Floor, 06/30/2028			1,439,995				1,425,401
							2,456,261
Chemicals - 1.77%
Ecovyst Catalyst Technologies LLC, First Lien Term Loan, 3M US L + 2.50%, 0.50% Floor, 06/09/2028			994,924				992,048
Geon Performance Solutions LLC, First Lien Term Loan, 3M US L + 4.50%, 0.75% Floor, 08/18/2028			344,482				340,284
Hyperion Materials & Technologies, Inc., First Lien Initial Term Loan, 1M US L + 4.25%, 0.50% Floor, 08/30/2028			662,438				658,507
Messer Industries LLC Tl, First Lien Term Loan, 3M US L + 2.50%, 03/02/2026			908,044				908,639
							2,899,478
Commercial Services & Supplies - 5.09%
Access CIG LLC, Second Lien Initial Term Loan, 1M US L + 7.75%, 02/27/2026			940,445				887,940
Allied Universal Holdco LLC, First Lien Initial U.S. Dollar Term Loan, 1M US SOFR + 3.75%, 0.50% Floor, 05/12/2028			613,352				597,337
Allied Universal Holdco LLC, TLB, First Lien Term Loan, 3M US SOFR + 4.75%, 05/12/2028			1,330,000				1,302,296
Covanta 11/21 TLB, First Lien Term Loan, 3M US L + 2.50%, 11/30/2028			1,524,758				1,513,757
Covanta 11/21 TLC, First Lien Term Loan, 1M US SOFR + 2.50%, 11/30/2028			115,368				114,535
Covanta Holding Corporation, TL, First Lien Term Loan:
1M US SOFR + 3.00%, 11/30/2028			25,799				25,731
1M US SOFR + 3.00%, 11/30/2028			343,992				343,079
DG Investment Intermediate Holdings 2, Inc., Second Lien Initial Term Loan, 1M US L + 6.75%, 0.75% Floor, 03/30/2029			581,429				517,835
Garda World Security Corp., First Lien B-2 Term Loan, 1M US SOFR + 4.25%, 10/30/2026			1,015,521				1,011,713
Revspring, Inc., First Lien Initial Term Loan, 3M US SOFR + 4.00%, 10/11/2025			1,031,400				994,445
TMF Sapphire Bidco B.V., TLB, First Lien Term Loan, 1M US SOFR + 5.00%, 05/05/2028			258,182				258,666
United Site Cov-Lite, First Lien Term Loan, 3M US L + 4.25%, 12/15/2028			952,954				785,353
							8,352,687
Communications Equipment - 0.45%
Commscope, Inc., First Lien Initial Term Loan, 1M US L + 3.25%, 04/06/2026			596,899				573,098
MLN US HoldCo LLC, First Lien B Term Loan, 3M US SOFR + 4.50%, 11/30/2025			699,130				167,791
							740,889
Construction & Engineering - 1.27%
Aegion Corp., First Lien Initial Term Loan, 1M US SOFR + 4.75%, 0.75% Floor, 05/17/2028			1,400,079				1,361,142
Brookfield WEC Holdings, Inc., First Lien Initial (2021) Term Loan, 1M US L + 2.75%, 0.50% Floor, 08/01/2025			570,708				570,232
Tutor Perini Corp., First Lien B Term Loan, 3M US L + 4.75%, 1.00% Floor, 08/18/2027			165,301				149,834
							2,081,208
Construction Materials - 1.42%
Quickrete Holdings, Inc., First Lien Initial Term Loan, 1M US L + 2.50%, 02/01/2027			996,902				996,229

 

See Notes to Financial Statements.

Semi-Annual Report | June 30, 2023

31

Blackstone Long-Short Credit Income Fund

Portfolio of Investments

June 30, 2023 (Unaudited)

 

		Principal Amount				Value
Construction Materials (continued)
White Cap Buyer LLC, First Lien Initial Closing Date Term Loan, 1M US SOFR + 3.75%, 0.50% Floor, 10/19/2027		$	1,334,661			$	1,325,672
							2,321,901
Containers & Packaging - 1.08%
Berry Global, Inc., First Lien Term Loan, 1M US L + 1.75%, 07/01/2026			253,446				253,449
LABL, Inc., First Lien Term Loan, 1M US SOFR + 5.00%, 10/29/2028			499,536				495,447
Strategic Materials Holding Corp., Second Lien Initial Term Loan, 3M US SOFR + 7.75%, 1.00% Floor, 10/31/2025			533,333				53,333
Tekni-Plex, Inc., First Lien Tranche B-3 Initial Term Loan, 3M US L + 4.00%, 0.50% Floor, 09/15/2028			987,061				973,667
							1,775,896
Distributors - 0.80%
LBM Acquisition LLC, First Lien Initial Term Loan, 3M US L + 3.75%, 0.75% Floor, 12/17/2027			1,358,472				1,308,236
Diversified Consumer Services - 4.15%
Element Materials Technology Group Holdings DTL, First Lien Term Loan, 3M US SOFR + 4.25%, 06/22/2029			292,483				287,365
Element Materials Technology Group Holdings TL, First Lien Term Loan, 3M US SOFR + 4.25%, 06/22/2029			633,715				622,625
Loyalty Ventures, Inc., First Lien Term Loan, PRIME + 3.50%, 11/03/2027(c)			434,172				53,837
McKissock Investment Holdings, LLC, First Lien Term Loan, 3M US SOFR + 5.00%, 03/12/2029			136,900				132,793
Prime Security Services Borrower LLC, First Lien 2021 Refinancing B-1 Term Loan, 1M US SOFR + 2.75%, 0.75% Floor, 09/23/2026			1,987,782				1,989,700
Rinchem Company, Inc., First Lien Term Loan, 3M US SOFR + 4.25%, 03/02/2029(b)			450,000				424,688
St. George's University Scholastic Services LLC, First Lien Term Loan B Term Loan, 1M US SOFR + 3.25%, 0.50% Floor, 02/10/2029			971,769				965,701
TruGreen LP, First Lien Term Loan, 1M US SOFR + 4.00%, 0.75% Floor, 11/02/2027			1,290,076				1,190,740
Weld North Education LLC, First Lien Term Loan, 1M US SOFR + 3.75%, 0.50% Floor, 12/21/2027			1,163,170				1,145,577
							6,813,026
Diversified Telecommunication Services - 3.93%
Level 3 Financing, Inc., First Lien Term Loan, 1M US SOFR + 1.75%, 03/01/2027			2,764,531				2,582,252
Lumen Technologies, Inc., First Lien Term Loan, 1M US SOFR + 2.25%, 03/15/2027			1,341,435				1,038,774
Telenet Financing USD LLC, First Lien Term Loan, 1M US L + 2.00%, 04/30/2028			1,803,616				1,774,632
Telesat Canada, First Lien B-5 Term Loan, 3M US L + 2.75%, 12/07/2026			816,557				506,163
Zacapa S.A.R.L., First Lien Term Loan, 3M US SOFR + 4.00%, 03/22/2029			550,000				536,896
							6,438,717
Electric Utilities - 0.51%
Miron Technologies, Inc., First Lien Term Loan, 3M US SOFR + 2.75%, 10/20/2028			843,222				840,237
Electrical Equipment - 1.46%
Generac Power Systems, Inc., First Lien Term Loan, 1M US SOFR + 1.75%, 12/13/2026			1,000,000				998,750
Madison IAQ LLC, First Lien Initial Term Loan, 3M US L + 3.25%, 0.50% Floor, 06/21/2028			1,424,162				1,396,746
							2,395,496
Electronic Equipment, Instruments & Components - 0.62%
Ingram Micro, Inc., First Lien Initial Term Loan, 3M US L + 3.50%, 0.50% Floor, 06/30/2028			665,316				664,073
LTI Holdings, Inc., First Lien Term Loan, 3M US L + 4.75%, 07/24/2026			365,148				356,475
							1,020,548

 

See Notes to Financial Statements.

32	www.blackstone-credit.com

Blackstone Long-Short Credit Income Fund

Portfolio of Investments

June 30, 2023 (Unaudited)

 

		Principal Amount				Value
Energy Equipment & Services - 0.02%
EnergySolutions LLC, First Lien Initial Term Loan, 3M US L + 3.75%, 1.00% Floor, 05/09/2025		$	27,510			$	27,085
Entertainment - 2.02%
Amplify Finco Pty, Ltd., First Lien U.S. Dollar Term Loan, 3M US L + 4.15%, 0.75% Floor, 11/26/2026			1,172,419				1,169,488
CE Intermediate I LLC, First Lien Term Loan, 3M US L + 4.00%, 0.50% Floor, 11/10/2028(b)			760,350				748,944
Live Nation Entertainment, Inc., First Lien Term Loan, 1M US SOFR + 1.75%, 10/19/2026			1,396,382				1,395,223
							3,313,655
Financial Services - 3.46%
Lereta, LLC, First Lien Term Loan, 1M US L + 5.25%, 07/30/2028			430,205				395,788
Mitchell International, Inc., First Lien Term Loan, 1M US L + 3.75%, 10/15/2028			1,388,457				1,360,258
Mitchell International, Inc., Second Lien Term Loan, 1M US L + 6.50%, 10/15/2029			815,979				724,182
Polaris Newco LLC, First Lien Dollar Term Loan, 3M US L + 4.00%, 0.50% Floor, 06/02/2028			2,064,859				1,906,546
The Citco Group Limited, TLB, First Lien Term Loan, 3M US SOFR + 3.50%, 04/27/2028(b)			1,293,500				1,295,117
							5,681,891
Food Products - 2.00%
CH Guenther 11/21 TL, First Lien Term Loan, 1M US SOFR + 3.00%, 12/08/2028(b)			1,130,000				1,122,938
Froneri International, Ltd., First Lien Facility B2 Term Loan, 1M US SOFR + 2.25%, 01/29/2027			1,644,555				1,638,182
Snacking Investments BidCo Pty, Ltd., First Lien Initial US Term Loan, 3M US SOFR + 4.00%, 1.00% Floor, 12/18/2026			522,232				520,764
							3,281,884
Ground Transportation - 1.65%
Avis Budget Car Rental LLC, First Lien Term Loan, 1M US SOFR + 1.75%, 08/06/2027			1,339,589				1,325,355
Uber Technologies, Inc., TLB, First Lien Term Loan, 3M US SOFR + 2.75%, 03/03/2030			1,386,521				1,388,171
							2,713,526
Health Care Equipment & Supplies - 3.61%
Auris Luxembourg III SARL, First Lien Facility B2 Term Loan, 6M US L + 3.75%, 02/27/2026			1,740,918				1,652,566
Carestream Health, Inc. TL 1L, First Lien Term Loan, 3M US L + 7.50%, 09/30/2027			117,856				86,271
Femur Buyer, Inc., First Lien Initial Term Loan, 3M US L + 4.50%, 03/05/2026			291,235				269,392
Tecostar Holdings, Inc., First Lien 2017 Term Loan, 3M US L + 3.50%, 1.00% Floor, 05/01/2024			1,598,165				1,582,183
Viant Medical Holdings, Inc., First Lien Initial Term Loan, 1M US L + 3.75%, 07/02/2025			1,069,139				1,039,518
YI LLC, First Lien Initial Term Loan, 1M US L + 4.00%, 1.00% Floor, 11/07/2024			1,341,459				1,288,921
							5,918,851
Health Care Providers & Services - 9.99%
Covenant Surgical Partners, Inc., First Lien Delayed Draw Term Loan, 6M US L + 4.00%, 07/01/2026			237,230				185,632
Covenant Surgical Partners, Inc., First Lien Initial Term Loan, 3M US L + 4.00%, 07/01/2026			1,141,817				893,472
DaVita, Inc., First Lien B Term Loan, 1M US L + 1.75%, 08/12/2026			1,023,270				1,010,070
Electron Bidco, Inc., First Lien Term Loan, 1M US SOFR + 3.00%, 11/01/2028			1,391,565				1,387,648
Envision Healthcare Corp., First Lien Term Loan:
3M US SOFR + 4.25%, 03/31/2027(c)			1,173,438				265,127
3M US SOFR + 7.88%, 03/31/2027(c)			181,854				200,266
Global Medical Response, Inc., First Lien 2018 New Term Loan, 1M US SOFR + 4.25%, 1.00% Floor, 03/14/2025			1,783,049				1,011,880
Global Medical Response, Inc., First Lien 2020 Refinancing Term Loan, 1M US L + 4.25%, 1.00% Floor, 10/02/2025			224,587				127,453
Heartland Dental LLC, First Lien 2021 Incremental Term Loan, 3M US L + 4.00%, 04/30/2025			48,061				47,641
Heartland Dental, LLC, TL, First Lien Term Loan, 1M US SOFR + 5.00%, 04/28/2028			1,515,915				1,466,011

 

See Notes to Financial Statements.

Semi-Annual Report | June 30, 2023

33

Blackstone Long-Short Credit Income Fund

Portfolio of Investments

June 30, 2023 (Unaudited)

 

		Principal Amount				Value
Health Care Providers & Services (continued)
LifePoint Health, Inc., First Lien B Term Loan, 3M US L + 3.75%, 11/16/2025		$	1,351,799			$	1,255,301
Loire UK Midco 3, Ltd., First Lien Facility B2 Term Loan, 1M US L + 3.50%, 0.75% Floor, 04/21/2027			898,521				876,058
Medical Solutions LLC, First Lien Term Loan, 3M US SOFR + 3.50%, 11/01/2028			9,710				9,147
NAPA Management Services Corp., First Lien Term Loan, 3M US SOFR + 5.25%, 0.75% Floor, 02/23/2029			813,177				569,631
National Mentor Holdings, Inc., TL, First Lien Term Loan, 1M US L + 3.75%, 03/02/2028			2,102,736				1,600,056
National Mentor Holdings, Inc., TLC, First Lien Term Loan, 3M US SOFR + 3.75%, 03/02/2028			59,805				45,508
Onex TSG Intermediate Corp., First Lien Initial Term Loan, 3M US SOFR + 4.75%, 0.75% Floor, 02/28/2028			1,342,903				1,200,219
Pathway Vet Alliance LLC, First Lien 2021 Replacement Term Loan, 1M US L + 3.75%, 03/31/2027			842,291				746,131
Pediatric Associates Holding Co. LLC, First Lien Term Loan:
3M US L + 1.88%, 12/29/2028(d)			106,400				104,352
3M US L + 3.25%, 0.50% Floor, 12/29/2028			825,635				809,741
PetVet Care Centers LLC, 1M US L + 6.25%, 02/13/2026			987,000				906,806
Radiology Partners, Inc., First Lien Term Loan, 1M US SOFR + 4.25%, 07/09/2025			877,722				665,699
Radnet Management, Inc., First Lien Initial Term Loan, 1M US SOFR + 3.00%, 0.75% Floor, 04/23/2028			994,930				994,229
							16,378,078
Health Care Technology - 3.04%
AthenaHealth Group, Inc. Delayed Draw, First Lien Term Loan, 3M US L + 3.50%, 02/15/2029(d)			43,570				42,045
AthenaHealth Group, Inc., First Lien Term Loan, 1M US L + 5.80%, 02/15/2029			1,630,058				1,573,006
GHX Ultimate Parent Corp, TL, First Lien Term Loan, 3M US L + 0.00%, 06/30/2027			1,005,490				1,008,321
Project Ruby Ultimate Parent Corp., First Lien Closing Date Term Loan, 1M US L + 3.25%, 0.75% Floor, 03/10/2028			711,909				697,098
Verscend Holding Corp., First Lien B-1 Term Loan, 1M US L + 4.00%, 08/27/2025			1,656,333				1,657,881
							4,978,351
Hotels, Restaurants & Leisure - 6.92%
1011778 B.C. Unlimited Liability Company, First Lien B-4 Term Loan, 1M US L + 1.75%, 11/19/2026			1,389,203				1,381,673
Aramark Intermediate HoldCo Corp., First Lien U.S. B-4 Term Loan, 1M US SOFR + 1.75%, 01/15/2027			750,000				744,142
Aramark Services, Inc., First Lien Term Loan, 1M US L + 2.50%, 04/06/2028			314,684				314,841
Bally's Corp., First Lien Term Loan, 1M US L + 3.25%, 0.50% Floor, 10/02/2028			1,403,059				1,373,882
Caesars Entertainment, Inc., First Lien Term Loan, 1M US SOFR + 3.25%, 0.50% Floor, 02/06/2030			1,257,050				1,258,690
Carnival Corp., First Lien Term Loan, 1M US SOFR + 3.25%, 0.75% Floor, 10/18/2028			1,848,906				1,835,807
Fertitta Entertainment, LLC, First Lien Term Loan, 1M US SOFR + 4.00%, 01/27/2029			547,229				541,130
Flutter Financing B.V., First Lien Term Loan, 3M US SOFR + 3.25%, 0.50% Floor, 07/22/2028			649,333				651,288
Tacala Investment Corp., Second Lien Initial Term Loan, 3M US L + 7.50%, 0.75% Floor, 02/04/2028			1,207,931				1,144,515
Whatabrands LLC, First Lien Initial B Term Loan, 1M US SOFR + 3.25%, 0.50% Floor, 08/03/2028			2,113,504				2,103,761
							11,349,729
Independent Power and Renewable Electricity Producers - 0.93%
Calpine Corp., First Lien Term Loan, 1M US L + 2.00%, 04/05/2026			1,389,147				1,389,578
Eastern Power LLC, First Lien Term Loan, 1M US SOFR + 3.75%, 1.00% Floor, 10/02/2025			133,737				129,216
							1,518,794

 

See Notes to Financial Statements.

34	www.blackstone-credit.com

Blackstone Long-Short Credit Income Fund

Portfolio of Investments

June 30, 2023 (Unaudited)

 

		Principal Amount				Value
Industrial Conglomerates - 3.57%
Bettcher Industries, Inc., First Lien Term Loan, 1M US SOFR + 4.00%, 12/14/2028		$	739,374			$	720,431
Engineered Machinery Holdings, Inc., First Lien Term Loan, 3M US L + 3.50%, 0.75% Floor, 05/19/2028			1,356,044				1,332,313
Justrite Safety Group, First Lien Delayed Draw Term Loan, 1M US SOFR + 4.50%, 06/28/2026			64,911				61,645
Justrite Safety Group, First Lien Initial Term Loan, 1M US SOFR + 4.50%, 06/28/2026			1,200,709				1,140,295
Redwood Star Merger Sub, Inc., First Lien Term Loan, 1M US SOFR + 4.50%, 04/05/2029			1,295,643				1,282,149
Tailwind Smith Cooper Intermediate Corp., First Lien Initial Term Loan, 3M US SOFR + 5.00%, 05/28/2026			1,356,000				1,321,761
							5,858,594
Insurance - 2.97%
AmWINS Group, Inc., First Lien Term Loan:
1M US L + 2.25%, 0.75% Floor, 02/19/2028			1,756,296				1,743,133
1M US SOFR + 2.75%, 0.75% Floor, 02/19/2028			197,830				197,603
Broadstreet Partners, Inc., TLB3, First Lien Term Loan, 3M US SOFR + 4.00%, 01/27/2029			1,356,935				1,351,847
HIG Finance 2, Ltd., First Lien 2021 Dollar Refinancing Term Loan, 1M US L + 3.25%, 0.75% Floor, 11/12/2027			378,061				376,644
Hyperion Refinance S.a r.l. TL, First Lien Term Loan, 3M US SOFR + 0.00%, 0.50% Floor, 04/18/2030			576,462				576,102
NFP Corp., First Lien Closing Date Term Loan, 1M US SOFR + 3.25%, 02/15/2027			640,076				628,417
							4,873,746
Interactive Media & Services - 1.17%
Adevinta ASA, First Lien Facility B2 Term Loan, 3M US L + 2.75%, 0.75% Floor, 06/26/2028			372,838				373,978
MH Sub I LLC, First Lien Term Loan, 1M US SOFR + 4.25%, 05/03/2028			990,000				951,143
MH Sub I LLC, Second Lien 2021 Replacement Term Loan, 1M US SOFR + 6.25%, 02/23/2029			675,113				590,832
							1,915,953
IT Services - 3.45%
AG Group Holdings, Inc., First Lien Term Loan, 3M US SOFR + 4.00%, 12/29/2028(b)			1,283,233				1,254,360
Dcert Buyer, Inc., Second Lien First Amendment Refinancing Term Loan, 6M US SOFR + 7.00%, 02/19/2029			1,525,691				1,406,183
Newfold Digital Holdings Group, Inc., First Lien Initial Term Loan, 3M US L + 3.50%, 0.75% Floor, 02/10/2028			1,562,673				1,459,146
Vaco Holdings, LLC, First Lien Term Loan, 3M US SOFR + 5.00%, 01/21/2029			1,244,923				1,138,333
World Wide Technology Holding Co., LLC, TL, First Lien Term Loan, 1M US SOFR + 3.25%, 03/01/2030			395,370				396,112
							5,654,134
Leisure Products - 0.42%
Recess Holdings, Inc., First Lien Initial Term Loan, 3M US L + 3.75%, 1.00% Floor, 09/30/2024			681,685				682,963
Life Sciences Tools & Services - 2.53%
Catalent Pharma Solutions, Inc., First Lien Term Loan, 1M US L + 2.00%, 0.50% Floor, 02/22/2028			1,393,906				1,368,202
Curia Global, Inc., First Lien 2021 Term Loan, 3M US SOFR + 3.75%, 0.75% Floor, 08/30/2026			1,266,094				1,094,716
Maravai Intermediate Holdings LLC, First Lien Term Loan, 1M US L + 3.25%, 0.50% Floor, 10/19/2027			345,580				345,796
Parexel International Corporation, First Lien Term Loan, 3M US L + 3.25%, 0.50% Floor, 11/15/2028			1,346,600				1,337,847
							4,146,561
Machinery - 1.16%
Pro Mach Group, Inc., First Lien Closing Date Initial Term Loan, 3M US L + 4.00%, 1.00% Floor, 08/31/2028			937,326				936,257

 

See Notes to Financial Statements.

Semi-Annual Report | June 30, 2023

35

Blackstone Long-Short Credit Income Fund

Portfolio of Investments

June 30, 2023 (Unaudited)

 

		Principal Amount				Value
Machinery (continued)
Titan Acquisition, Ltd., First Lien Initial Term Loan, 3M US L + 3.00%, 03/28/2025		$	992,147			$	970,855
							1,907,112
Media - 7.80%
Champ Acquisition Corp., First Lien Initial Term Loan, 6M US L + 5.50%, 12/19/2025			1,083,049				1,084,538
Charter Communications Operating LLC, First Lien Term Loan, 1M US SOFR + 1.75%, 02/01/2027			1,044,588				1,039,579
Cogeco Communications USA II LP, First Lien Term Loan, 1M US L + 2.00%, 01/03/2025			1,379,286				1,379,858
iHeartCommunications, Inc., First Lien New Term Loan, 1M US SOFR + 3.00%, 05/01/2026			366,197				318,112
Radiate Holdco, LLC,, First Lien Term Loan, 1M US L + 3.25%, 09/25/2026			1,190,932				996,959
Univision Communications, Inc., First Lien Term Loan:
1M US L + 3.25%, 0.75% Floor, 03/15/2026			1,581,141				1,570,128
3M US SOFR + 4.25%, 06/24/2029			190,831				190,751
UPC Financing Partnership, First Lien Facility AT Term Loan, 1M US L + 2.25%, 04/30/2028			2,190,005				2,159,893
Virgin Media Bristol LLC, First Lien Term Loan:
1M US L + 2.50%, 01/31/2028			1,743,300				1,730,992
1M US L + 3.25%, 01/31/2029			550,000				548,427
Ziggo Financing Partnership, First Lien I Facility Term Loan, 1M US L + 2.50%, 04/30/2028			1,795,328				1,770,965
							12,790,202
Mortgage Real Estate Investment - 0.34%
Blackstone Mortgage Trust, Inc., First Lien Term Loan:
1M US L + 2.75%, 0.50% Floor, 04/23/2026			297,716				281,341
1M US SOFR + 2.25%, 04/23/2026			297,680				279,969
							561,310
Oil, Gas & Consumable Fuels - 1.88%
Buckeye Partners LP, First Lien Term Loan, 1M US L + 2.25%, 11/01/2026			764,122				759,904
Freeport LNG, First Lien Term Loan, 3M US L + 3.50%, 12/21/2028			1,999,146				1,962,322
Whitewater Whistler Holdings, LLC TLB 1L, First Lien Term Loan, 3M US SOFR + 3.25%, 02/15/2030			362,390				362,616
							3,084,842
Passenger Airlines - 2.77%
Air Canada, First Lien B Term Loan, 3M US L + 3.50%, 0.75% Floor, 08/11/2028			895,489				896,689
American Airlines, Inc., First Lien 2020 Term Loan, 3M US SOFR + 1.75%, 01/29/2027			630,178				615,211
American Airlines, Inc., First Lien Term Loan, 6M US SOFR + 2.75%, 02/15/2028			540,414				531,443
Apple Bidco LLC, First Lien Term Loan, 1M US SOFR + 4.00%, 0.50% Floor, 09/22/2028			576,459				574,297
Brown Group Holding LLC, First Lien Term Loan, 1M US SOFR + 2.50%, 0.50% Floor, 06/07/2028			1,041,481				1,027,051
United AirLines, Inc., First Lien Class B Term Loan, 3M US L + 3.75%, 0.75% Floor, 04/21/2028			904,800				905,809
							4,550,500
Pharmaceuticals - 1.86%
Elanco Animal Health, Inc., First Lien B Term Loan, 1M US SOFR + 1.75%, 08/01/2027			2,126,641				2,090,754
Padagis LLC, First Lien Initial Term Loan, 3M US L + 4.75%, 0.50% Floor, 07/06/2028			1,005,096				953,585
							3,044,339
Professional Services - 7.16%
AlixPartners, LLP, First Lien USD B Term Loan, 1M US SOFR + 2.50%, 0.50% Floor, 02/04/2028			793,909				793,214
AqGen Island Holdings, Inc., First Lien Term Loan, 3M US L + 6.50%, 08/02/2029			1,747,855				1,573,069
CoreLogic, Inc., First Lien Initial Term Loan, 1M US L + 3.50%, 0.50% Floor, 06/02/2028			1,744,873				1,579,546
CoreLogic, Inc., Second Lien Initial Term Loan, 1M US L + 6.50%, 0.50% Floor, 06/04/2029			553,488				451,093

 

See Notes to Financial Statements.

36	www.blackstone-credit.com

Blackstone Long-Short Credit Income Fund

Portfolio of Investments

June 30, 2023 (Unaudited)

 

		Principal Amount				Value
Professional Services (continued)
Deerfield Dakota Holding LLC, Second Lien 2021 Replacement Term Loan, 3M US L + 6.75%, 0.75% Floor, 04/07/2028		$	296,000			$	277,593
Dun & Bradstreet Corp., First Lien Initial Borrowing Term Loan, 1M US SOFR + 3.25%, 02/06/2026			671,540				672,967
EP Purcasher, LLC, First Lien Term Loan, 3M US L + 3.50%, 11/06/2028			149,621				146,816
Galaxy US Opco Inc. TL, First Lien Term Loan, 1M US SOFR + 4.75%, 04/29/2029			628,875				592,714
Minotaur Acquisition, Inc., First Lien B Term Loan, 1M US SOFR + 4.75%, 03/27/2026			1,073,751				1,058,654
National Intergovernmental Purchasing Alliance Company, Second Lien Initial Term Loan, 3M US SOFR + 7.50%, 05/26/2026			1,227,350				1,153,709
Outcomes Group Holdings, Inc., Second Lien Initial Term Loan, 1M US L + 7.50%, 10/26/2026			133,136				131,139
Output Services Group, Inc. TLA 1L, First Lien Term Loan, 3M US SOFR + 5.25%, 1.50% PIK, 06/29/2026(c)(e)			459,898				125,322
Trans Union LLC, First Lien Term Loan, 1M US SOFR + 1.75%, 11/16/2026			1,685,057				1,682,832
TransUnion 11/21 B6 TLB, First Lien Term Loan, 1M US L + 2.25%, 12/01/2028			344,223				343,810
TRC Companies, First Lien Term Loan, 3M US L + 3.75%, 12/08/2028			538,034				530,637
TRC Companies, Second Lien Term Loan, 1M US L + 6.75%, 12/07/2029			633,538				584,439
VT Topco, Inc., First Lien 2021 Delayed Draw Term Loan, 3M US L + 0.00%, 0.75% Floor, 08/01/2025(d)			305				302
VT Topco, Inc., First Lien 2021 Term Loan, 1M US SOFR + 3.75%, 0.75% Floor, 08/01/2025			50,342				49,770
							11,747,626
Semiconductors & Semiconductor Equipment - 0.67%
Coherent Corp., First Lien Term Loan, 1M US SOFR + 2.75%, 0.50% Floor, 07/02/2029			1,101,305				1,100,964
Software - 13.40%
Apttus Corp., First Lien Initial Term Loan, 3M US L + 4.25%, 0.75% Floor, 05/08/2028			560,744				550,813
CDK Global, Inc., First Lien Term Loan, 3M US SOFR + 4.50%, 07/06/2029			1,542,662				1,540,148
Connectwise, LLC, First Lien Term Loan, 1M US L + 3.50%, 0.50% Floor, 09/29/2028			443,038				432,518
Cornerstone OnDemand, Inc., First Lien Initial Term Loan, 3M US SOFR + 3.75%, 0.50% Floor, 10/16/2028			1,676,270				1,566,273
DTI Holdco, Inc. TL, First Lien Term Loan, 3M US SOFR + 4.75%, 04/26/2029			725,918				677,597
Fiserv Investment Solutions, Inc., First Lien Initial Term Loan, 3M US L + 4.00%, 02/18/2027			1,339,677				1,306,185
Greeneden U.S. Holdings I LLC, First Lien Initial Dollar (2020) Term Loan, 1M US SOFR + 4.00%, 0.75% Floor, 12/01/2027			474,883				474,247
Help/Systems Holdings, Inc., First Lien Seventh Amendment Refinancing Term Loan, 3M US SOFR + 4.00%, 0.75% Floor, 11/19/2026			1,845,183				1,688,342
Hyland Software, Inc., Second Lien 2021 Refinancing Term Loan, 1M US L + 6.25%, 0.75% Floor, 07/07/2025			1,394,543				1,347,477
Imperva, Inc., First Lien Term Loan, 3M US L + 4.00%, 1.00% Floor, 01/12/2026			1,282,390				1,164,571
Ivanti Software, Inc., First Lien First Amendment Term Loan, 1M US L + 4.00%, 0.75% Floor, 12/01/2027			242,543				203,699
Ivanti Software, Inc., Second Lien Term Loan, 3M US L + 7.25%, 12/01/2028			476,866				316,522
LI Group Holdings, Inc., First Lien 2021 Term Loan, 1M US L + 3.75%, 0.75% Floor, 03/11/2028			703,560				704,000
LTI Holdings, Inc., First Lien Initial Term Loan, 3M US L + 3.50%, 09/06/2025			1,200,535				1,155,947
LTI Holdings, Inc., Second Lien Initial Term Loan, 3M US L + 6.75%, 09/06/2026			382,979				328,245
Magenta Buyer LLC, First Lien Initial Term Loan, 3M US L + 4.75%, 0.75% Floor, 07/27/2028			1,563,907				1,182,705
Mitnick Corporate Purchaser Inc., First Lien Term Loan, 3M US SOFR + 4.75%, 05/02/2029			388,148				376,989
Park Place Technologies LLC, First Lien Closing Date Term Loan, 1M US SOFR + 5.00%, 1.00% Floor, 11/10/2027			749,703				730,960
Perforce Software, Inc., First Lien New Term Loan, 1M US L + 3.75%, 07/01/2026			248,064				235,506
Proofpoint, Inc., TL, First Lien Term Loan, 1M US SOFR + 3.25%, 08/31/2028			547,222				536,505
Quartz Acquireco, LLC, TL, First Lien Term Loan, 1M US SOFR + 3.50%, 04/14/2030(b)			1,331,620				1,333,284
Quest Borrower Ltd., First Lien Term Loan, 3M US SOFR + 4.25%, 02/01/2029			1,228,763				959,971
Skopima Merger Sub Inc., First Lien Initial Term Loan, 1M US L + 4.00%, 05/12/2028			746,699				727,632

 

See Notes to Financial Statements.

Semi-Annual Report | June 30, 2023

37

Blackstone Long-Short Credit Income Fund

Portfolio of Investments

June 30, 2023 (Unaudited)

 

		Principal Amount				Value
Software (continued)
SS&C Technologies, Inc., First Lien Term Loan:
1M US L + 2.25%, 0.50% Floor, 03/22/2029		$	198,923			$	198,592
1M US L + 2.25%, 0.50% Floor, 03/22/2029			299,774				299,275
Vision Solutions, Inc., First Lien Term Loan, 3M US L + 4.00%, 0.75% Floor, 04/24/2028			2,045,172				1,948,241
							21,986,244
Specialty Retail - 1.14%
EG America LLC, First Lien Term Loan:
1M US SOFR + 4.00%, 02/28/2028(b)			52,778				52,547
1M US SOFR + 4.00%, 0.50% Floor, 02/28/2028(b)			79,167				75,802
1M US SOFR + 4.00%, 02/28/2028(b)			353,993				351,781
1M US SOFR + 4.00%, 0.50% Floor, 02/28/2028(b)			530,990				509,087
1M US SOFR + 4.25%, 02/28/2028(b)			85,264				84,731
1M US SOFR + 4.25%, 0.50% Floor, 02/28/2028(b)			127,896				122,620
1M US SOFR + 5.50%, 0.50% Floor, 02/29/2028(b)			588,475				566,407
EG Group, Ltd., First Lien Additional Facility Term Loan, 1M US SOFR + 0.00%, 02/07/2025			114,788				113,258
							1,876,233
Technology Hardware, Storage & Peripherals - 0.69%
Project Castle, Inc., First Lien Term Loan, 3M US SOFR + 5.50%, 06/01/2029			1,332,803				1,132,882
Textiles, Apparel & Luxury Goods - 0.48%
S&S Holdings LLC, First Lien Initial Term Loan, 3M US L + 5.00%, 0.50% Floor, 03/11/2028			893,194				783,778
Trading Companies & Distributors - 2.12%
Foundation Building Materials, Inc., First Lien Initial Term Loan, 3M US L + 3.25%, 0.50% Floor, 01/31/2028			652,961				636,006
Park River Holdings, Inc., First Lien Initial Term Loan, 6M US L + 3.25%, 0.75% Floor, 12/28/2027			1,602,715				1,541,067
SRS Distribution, Inc., First Lien Term Loan, 1M US SOFR + 3.50%, 06/02/2028			698,232				682,962
Windsor Holdings III, LLC, TL, First Lien Term Loan, 6M US SOFR + 4.50%, 06/21/2030			629,872				619,558
							3,479,593
Wireless Telecommunication Services - 0.88%
CCI Buyer, Inc., First Lien Initial Term Loan, 3M US SOFR + 4.00%, 0.75% Floor, 12/17/2027			1,468,428				1,443,648
TOTAL FLOATING RATE LOAN INTERESTS
(Cost $223,602,954)							216,132,688
COLLATERALIZED LOAN OBLIGATION SECURITIES(a) - 6.12%
Banks - 0.13%
Wellfleet CLO 2020-1, Ltd., 3M US L + 7.24%, 04/15/2033(b)(f)			250,000				214,661
Consumer Finance - 1.09%
OCP CLO 2020-18, Ltd., 3M US L + 6.43%, 07/20/2032(b)(f)			1,000,000				911,150
Octagon Investment Partners 43, Ltd., 3M US L + 6.60%, 10/25/2032(b)(f)			500,000				447,835
PPM CLO 3, Ltd., 3M US L + 6.61%, 04/17/2034(b)(f)			500,000				423,523
							1,782,508
Financial Services - 4.90%
Eaton Vance CLO 2013-1, Ltd., 3M US L + 6.80%, 01/15/2034(b)(f)			500,000				468,982
Galaxy XXVII CLO, Ltd., 3M US L + 5.78%, 05/16/2031(b)(f)			625,000				552,967
HPS Loan Management CLO 6-2015, Ltd., 3M US L + 5.10%, 02/05/2031(b)(f)			833,000				694,915
Jamestown CLO XIV, Ltd., 3M US L + 7.20%, 10/20/2034(b)(f)			1,000,000				911,451

 

See Notes to Financial Statements.

38	www.blackstone-credit.com

Blackstone Long-Short Credit Income Fund

Portfolio of Investments

June 30, 2023 (Unaudited)

 

		Principal Amount				Value
Financial Services (continued)
Parallel 2021-2, Ltd., 3M US L + 7.20%, 10/20/2034(b)(f)		$	500,000			$	446,817
Park Avenue Institutional Advisers CLO, Ltd. 2022-1, 3M US SOFR + 7.29%, 04/20/2035(b)(f)			1,000,000				949,074
Rad CLO 2, Ltd., 3M US L + 6.00%, 10/15/2031(b)(f)			750,000				657,197
Rad CLO 5, Ltd., 3M US L + 6.70%, 07/24/2032(b)(f)			250,000				230,962
Romark CLO II, Ltd., 3M US L + 3.35%, 07/25/2031(b)(f)			250,000				234,407
Romark CLO IV, Ltd., 3M US L + 6.95%, 07/10/2034(b)(f)			1,000,000				906,187
Tiaa Clo III, Ltd., 3M US L + 5.90%, 01/16/2031(b)(f)			2,500,000				1,993,395
							8,046,354
TOTAL COLLATERALIZED LOAN OBLIGATION SECURITIES
(Cost $11,328,863)							10,043,523
CORPORATE BONDS - 24.54%
Aerospace & Defense - 1.46%
Bombardier, Inc., 7.500%, 02/01/2029(f)			782,000				773,848
Spirit AeroSystems, Inc., 4.600%, 06/15/2028			52,000				43,676
TransDigm, Inc.:
4.625%, 01/15/2029			480,000				427,549
4.880%, 05/01/2029			400,000				357,787
Triumph Group, Inc., 7.750%, 08/15/2025			817,000				795,178
							2,398,038
Air Freight & Logistics - 0.12%
Allegiant Travel Co., 7.250%, 08/15/2027(f)			200,000				199,464
Automobile Components - 0.17%
Patrick Industries, Inc., 4.750%, 05/01/2029(f)			315,000				270,920
Automobiles - 0.46%
Ford Motor Credit Co. LLC:
6.800%, 05/12/2028			554,000				555,109
7.350%, 03/06/2030			200,000				204,474
							759,583
Banks - 0.24%
Intesa Sanpaolo SpA, 5.710%, 01/15/2026(f)			420,000				400,115
Broadline Retail - 0.22%
Nordstrom, Inc., 5.000%, 01/15/2044			69,000				48,024
Rakuten Group, Inc., 10.250%, 11/30/2024(f)			320,000				317,596
							365,620
Building Products - 0.45%
Griffon Corp., 5.750%, 03/01/2028			290,000				271,530
JELD-WEN, Inc., 4.880%, 12/15/2027(f)			528,000				468,294
							739,824
Chemicals - 0.37%
Chemours Co., 4.630%, 11/15/2029(f)			120,000				101,522
FMG Resources August 2006 Pty, Ltd.:
5.875%, 04/15/2030(f)			146,000				139,194
4.375%, 04/01/2031(f)			160,000				136,837
6.125%, 04/15/2032(f)			146,000				139,349

 

See Notes to Financial Statements.

Semi-Annual Report | June 30, 2023

39

Blackstone Long-Short Credit Income Fund

Portfolio of Investments

June 30, 2023 (Unaudited)

 

		Principal Amount				Value
Chemicals (continued)
Valvoline, Inc., 3.630%, 06/15/2031(f)		$	110,000			$	89,531
							606,433
Commercial Services & Supplies - 0.07%
Deluxe Corp., 8.000%, 06/01/2029(f)			70,000				54,879
GFL Environmental, Inc., 4.000%, 08/01/2028(f)			60,000				53,721
							108,600
Communications Equipment - 0.29%
CommScope, Inc., 8.250%, 03/01/2027(f)			150,000				120,207
Viasat, Inc., 6.500%, 07/15/2028(f)			428,000				363,115
							483,322
Construction & Engineering - 0.25%
Brundage-Bone Concrete Pumping Holdings, Inc., 6.000%, 02/01/2026(f)			132,000				125,126
Great Lakes Dredge & Dock Corp., 5.250%, 06/01/2029(f)			111,000				92,811
Tutor Perini Corp., 6.875%, 05/01/2025(f)			225,000				186,886
							404,823
Consumer Finance - 1.91%
Enova International, Inc., 8.500%, 09/15/2025(f)			120,000				116,989
FirstCash, Inc.:
4.630%, 09/01/2028(f)			470,000				420,297
5.625%, 01/01/2030(f)			50,000				45,236
Goeasy, Ltd., 4.375%, 05/01/2026(f)			420,000				383,520
Navient Corp.:
5.000%, 03/15/2027			370,000				331,343
4.880%, 03/15/2028			240,000				205,776
9.375%, 07/25/2030			158,000				157,297
5.625%, 08/01/2033			150,000				112,957
OneMain Finance Corp.:
3.500%, 01/15/2027			198,000				170,076
6.625%, 01/15/2028			350,000				330,494
3.880%, 09/15/2028			220,000				180,048
5.375%, 11/15/2029			100,000				85,111
SLM Corp.:
4.200%, 10/29/2025			430,000				399,940
3.125%, 11/02/2026			40,000				34,640
Synchrony Financial, 7.250%, 02/02/2033			80,000				72,122
World Acceptance Corp., 7.000%, 11/01/2026(f)			105,000				91,973
							3,137,819
Consumer Staples Distribution & Retail - 0.12%
Albertsons Cos. Inc / Safeway, Inc. / New Albertsons LP / Albertsons LLC, 6.500%, 02/15/2028(f)			200,000				200,559
Containers & Packaging - 0.04%
Cascades, Inc./Cascades USA, Inc., 5.380%, 01/15/2028(f)			70,000				65,500
Diversified Consumer Services - 0.15%
Adtalem Global Education, Inc., 5.500%, 03/01/2028(f)			180,000				163,557
WW International, Inc., 4.500%, 04/15/2029(f)			130,000				76,964
							240,521

 

See Notes to Financial Statements.

40	www.blackstone-credit.com

Blackstone Long-Short Credit Income Fund

Portfolio of Investments

June 30, 2023 (Unaudited)

 

		Principal Amount				Value
Diversified REITs - 0.47%
Service Properties Trust:
4.750%, 10/01/2026		$	475,000			$	412,925
4.950%, 02/15/2027			355,000				303,967
3.950%, 01/15/2028			74,000				58,051
							774,943
Diversified Telecommunication Services - 0.57%
Cogent Communications Group, Inc., 7.000%, 06/15/2027(f)			400,000				387,360
Hughes Satellite Systems Corp., 6.625%, 08/01/2026			580,000				542,825
							930,185
Electric Utilities - 0.22%
PG&E Corp., 5.000%, 07/01/2028			400,000				367,408
Energy Equipment & Services - 1.36%
Archrock Lp/fin Aplp 6 7/8 04/01/27, 6.875%, 04/01/2027(f)			6,000				5,768
Archrock Partners LP / Archrock Partners Finance Corp., 6.250%, 04/01/2028(f)			550,000				517,165
Enerflex, Ltd., 9.000%, 10/15/2027(f)			290,000				282,441
Global Partners LP / GLP Finance Corp., 7.000%, 08/01/2027			205,000				199,199
NuStar Logistics LP:
5.625%, 04/28/2027			250,000				240,450
6.375%, 10/01/2030			110,000				105,071
Oceaneering International, Inc., 6.000%, 02/01/2028			310,000				294,018
Transocean, Inc.:
8.000%, 02/01/2027(f)			435,000				394,821
7.500%, 04/15/2031			250,000				197,325
							2,236,258
Entertainment - 0.06%
Lions Gate Capital Holdings LLC, 5.500%, 04/15/2029(f)			145,000				105,176
Financial Services - 1.29%
Burford Capital Global Finance LLC, 6.875%, 04/15/2030(f)			130,000				118,633
MGIC Investment Corp., 5.250%, 08/15/2028			260,000				245,482
Nationstar Mortgage Holdings, Inc.:
6.000%, 01/15/2027(f)			630,000				586,832
5.500%, 08/15/2028(f)			250,000				219,318
PennyMac Financial Services, Inc.:
5.375%, 10/15/2025(f)			482,000				455,998
4.250%, 02/15/2029(f)			80,000				64,332
5.750%, 09/15/2031(f)			320,000				261,307
PHH Mortgage Corp., 7.875%, 03/15/2026(f)			180,000				160,938
							2,112,840
Food Products - 0.09%
Post Holdings, Inc., 4.500%, 09/15/2031(f)			170,000				145,340
Gas Utilities - 0.09%
Suburban Propane Partners LP/Suburban Energy Finance Corp., 5.000%, 06/01/2031(f)			170,000				142,573
Ground Transportation - 0.09%
XPO, Inc., 7.125%, 06/01/2031(f)			150,000				151,324

 

See Notes to Financial Statements.

Semi-Annual Report | June 30, 2023

41

Blackstone Long-Short Credit Income Fund

Portfolio of Investments

June 30, 2023 (Unaudited)

 

		Principal Amount				Value
Health Care Providers & Services - 0.57%
CHS/Community Health Systems, Inc.:
6.875%, 04/15/2029(f)		$	250,000			$	156,405
6.125%, 04/01/2030(f)			70,000				41,780
DaVita, Inc.:
4.625%, 06/01/2030(f)			450,000				386,814
3.750%, 02/15/2031(f)			90,000				72,073
Encompass Health Corp.:
4.750%, 02/01/2030			100,000				91,171
4.625%, 04/01/2031			100,000				88,776
Tenet Healthcare Corp., 6.875%, 11/15/2031			90,000				89,903
							926,922
Health Care REITs - 0.05%
MPT Operating Partnership LP / MPT Finance Corp., 4.625%, 08/01/2029			100,000				75,689
Health Care Technology - 0.37%
MPH Acquisition Holdings LLC, 5.750%, 11/01/2028(f)			801,000				603,858
Hotels, Restaurants & Leisure - 2.05%
1011778 BC ULC / New Red Finance, Inc., 4.380%, 01/15/2028(f)			350,000				323,590
Bloomin' Brands, Inc. / OSI Restaurant Partners LLC, 5.125%, 04/15/2029(f)			50,000				44,737
Carnival Corp.:
7.625%, 03/01/2026(f)			790,000				774,456
5.750%, 03/01/2027(f)			25,000				23,038
Carrols Restaurant Group, Inc., 5.875%, 07/01/2029(f)			140,000				115,374
Churchill Downs, Inc., 4.750%, 01/15/2028(f)			160,000				148,573
NCL Corp., Ltd.:
5.875%, 03/15/2026(f)			655,000				613,383
7.750%, 02/15/2029(f)			180,000				171,128
Royal Caribbean Cruises, Ltd.:
4.250%, 07/01/2026(f)			125,000				114,856
5.500%, 08/31/2026(f)			110,000				104,395
5.375%, 07/15/2027(f)			50,000				46,805
7.500%, 10/15/2027			140,000				140,774
3.700%, 03/15/2028			400,000				348,102
Station Casinos LLC, 4.500%, 02/15/2028(f)			150,000				134,818
Wynn Resorts Finance LLC / Wynn Resorts Capital Corp., 5.130%, 10/01/2029(f)			280,000				251,248
							3,355,277
Household Durables - 1.15%
Beazer Homes USA, Inc.:
5.875%, 10/15/2027			48,000				44,833
7.250%, 10/15/2029			280,000				272,544
Century Communities, Inc., 3.880%, 08/15/2029(f)			230,000				199,591
Installed Building Products, Inc., 5.750%, 02/01/2028(f)			100,000				94,364
LGI Homes, Inc., 4.000%, 07/15/2029(f)			120,000				100,014
M/I Homes, Inc.:
4.950%, 02/01/2028			110,000				102,650
3.950%, 02/15/2030			100,000				85,386
Taylor Morrison Communities, Inc., 5.750%, 01/15/2028(f)			500,000				483,925
Tempur Sealy International, Inc.:
4.000%, 04/15/2029(f)			420,000				364,061
3.880%, 10/15/2031(f)			55,000				44,882

 

See Notes to Financial Statements.

42	www.blackstone-credit.com

Blackstone Long-Short Credit Income Fund

Portfolio of Investments

June 30, 2023 (Unaudited)

 

		Principal Amount				Value
Household Durables (continued)
TopBuild Corp.:
3.630%, 03/15/2029(f)		$	1,000			$	872
4.125%, 02/15/2032(f)			100,000				85,301
							1,878,423
Household Products - 0.20%
Energizer Holdings, Inc.:
6.500%, 12/31/2027(f)			140,000				134,771
4.750%, 06/15/2028(f)			210,000				187,530
							322,301
Interactive Media & Services - 0.50%
ANGI Group LLC, 3.875%, 08/15/2028(f)			230,000				188,071
Cinemark USA, Inc., 5.250%, 07/15/2028(f)			500,000				440,333
ZipRecruiter, Inc., 5.000%, 01/15/2030(f)			220,000				187,548
							815,952
IT Services - 0.08%
Unisys Corp., 6.875%, 11/01/2027(f)			180,000				129,843
Leisure Products - 0.09%
Vista Outdoor, Inc., 4.500%, 03/15/2029(f)			190,000				154,095
Machinery - 0.32%
Allison Transmission, Inc., 3.750%, 01/30/2031(f)			260,000				219,875
Manitowoc Co., Inc., 9.000%, 04/01/2026(f)			155,000				154,385
Wabash National Corp., 4.500%, 10/15/2028(f)			180,000				156,306
							530,566
Marine Transportation - 0.09%
Danaos Corp., 8.500%, 03/01/2028(f)			140,000				140,574
Media - 1.16%
CCO Holdings LLC / CCO Holdings Capital Corp.:
5.125%, 05/01/2027(f)			150,000				139,840
5.000%, 02/01/2028(f)			200,000				182,428
5.375%, 06/01/2029(f)			80,000				72,402
4.750%, 03/01/2030(f)			60,000				51,359
7.380%, 03/01/2031(f)			170,000				165,760
4.500%, 05/01/2032			70,000				55,960
Clear Channel Outdoor Holdings, Inc.:
7.750%, 04/15/2028(f)			220,000				172,971
7.500%, 06/01/2029(f)			70,000				51,879
DISH DBS Corp.:
5.875%, 11/15/2024			290,000				254,006
7.750%, 07/01/2026			70,000				43,006
Gray Television, Inc., 7.000%, 05/15/2027(f)			50,000				42,710
News Corp., 3.875%, 05/15/2029(f)			50,000				43,939
Nexstar Media, Inc.:
5.625%, 07/15/2027(f)			100,000				93,310
4.750%, 11/01/2028(f)			220,000				191,099
Scripps Escrow, Inc., 5.875%, 07/15/2027(f)			69,000				55,943
Townsquare Media, Inc., 6.875%, 02/01/2026(f)			218,000				208,671

 

See Notes to Financial Statements.

Semi-Annual Report | June 30, 2023

43

Blackstone Long-Short Credit Income Fund

Portfolio of Investments

June 30, 2023 (Unaudited)

 

		Principal Amount				Value
Media (continued)
Urban One, Inc., 7.375%, 02/01/2028(f)		$	80,000			$	69,777
							1,895,060
Metals & Mining - 0.50%
Eldorado Gold Corp., 6.250%, 09/01/2029(f)			245,000				219,734
IAMGOLD Corp., 5.750%, 10/15/2028(f)			200,000				149,905
Mineral Resources, Ltd., 8.000%, 11/01/2027(f)			250,000				249,908
New Gold, Inc., 7.500%, 07/15/2027(f)			125,000				116,883
Taseko Mines, Ltd., 7.000%, 02/15/2026(f)			100,000				91,245
							827,675
Mortgage Real Estate Investment - 0.74%
Apollo Commercial Real Estate Finance, Inc., 4.625%, 06/15/2029(f)			230,000				179,602
Rithm Capital Corp., 6.250%, 10/15/2025(f)			250,000				234,667
Starwood Property Trust, Inc.:
3.630%, 07/15/2026(f)			255,000				219,757
4.380%, 01/15/2027(f)			670,000				577,664
							1,211,690
Oil, Gas & Consumable Fuels - 3.16%
AmeriGas Partners LP / AmeriGas Finance Corp., 5.875%, 08/20/2026			291,000				273,977
Antero Midstream Partners LP / Antero Midstream Finance Corp., 5.750%, 03/01/2027(f)			720,000				695,042
Calumet Specialty Products Partners LP / Calumet Finance Corp., 9.750%, 07/15/2028(f)			88,000				86,649
CNX Resources Corp., 6.000%, 01/15/2029(f)			328,000				304,347
Crestwood Midstream Partners LP / Crestwood Midstream Finance Corp.:
5.625%, 05/01/2027(f)			250,000				237,250
6.000%, 02/01/2029(f)			99,000				92,542
Delek Logistics Partners LP / Delek Logistics Finance Corp., 7.125%, 06/01/2028(f)			170,000				157,674
Energean PLC, 6.500%, 04/30/2027(f)			70,000				63,975
EQM Midstream Partners LP, 6.500%, 07/15/2048			150,000				135,883
Hess Midstream Operations LP:
5.130%, 06/15/2028(f)			710,000				665,153
4.250%, 02/15/2030(f)			130,000				113,554
MEG Energy Corp., 5.875%, 02/01/2029(f)			310,000				291,839
Northern Oil and Gas, Inc.:
8.125%, 03/01/2028(f)			225,000				220,726
8.750%, 06/15/2031(f)			81,000				79,684
Parkland Corp.:
5.875%, 07/15/2027(f)			300,000				289,732
4.500%, 10/01/2029(f)			429,000				372,584
PBF Holding Co. LLC / PBF Finance Corp., 6.000%, 02/15/2028			170,000				159,059
Sunoco LP / Sunoco Finance Corp., 4.500%, 05/15/2029			638,000				566,748
Superior Plus LP / Superior General Partner, Inc., 4.500%, 03/15/2029(f)			200,000				175,512
Vital Energy, Inc., 9.500%, 01/15/2025			200,000				198,716
							5,180,646
Paper & Forest Products - 0.08%
Louisiana-Pacific Corp., 3.625%, 03/15/2029(f)			150,000				131,464
Passenger Airlines - 0.09%
American Airlines, Inc., 7.250%, 02/15/2028(f)			150,000				149,262
Personal Care Products - 0.06%
Edgewell Personal Care Co., 4.125%, 04/01/2029(f)			120,000				104,835

 

See Notes to Financial Statements.

44	www.blackstone-credit.com

Blackstone Long-Short Credit Income Fund

Portfolio of Investments

June 30, 2023 (Unaudited)

 

		Principal Amount				Value
Professional Services - 0.09%
TriNet Group, Inc., 3.500%, 03/01/2029(f)		$	170,000			$	147,979
Real Estate Management & Development - 0.75%
Forestar Group, Inc., 3.850%, 05/15/2026(f)			310,000				285,201
Howard Hughes Corp.:
5.375%, 08/01/2028(f)			30,000				26,741
4.125%, 02/01/2029(f)			490,000				406,024
4.380%, 02/01/2031(f)			133,000				106,270
Kennedy-Wilson, Inc.:
4.750%, 03/01/2029			220,000				174,157
4.750%, 02/01/2030			40,000				30,204
Realogy Group LLC / Realogy Co.-Issuer Corp., 5.750%, 01/15/2029(f)			270,000				202,324
							1,230,921
Software - 0.70%
Fair Isaac Corp., 4.000%, 06/15/2028(f)			300,000				275,492
MicroStrategy, Inc., 6.125%, 06/15/2028(f)			220,000				197,450
Open Text Corp., 3.880%, 02/15/2028(f)			640,000				564,262
Pitney Bowes, Inc.:
6.875%, 03/15/2027(f)			60,000				44,489
7.250%, 03/15/2029(f)			25,000				16,502
Science Applications International Corp., 4.880%, 04/01/2028(f)			59,000				54,949
							1,153,144
Specialized REITs - 0.03%
Uniti Group LP / Uniti Group Finance, Inc. / CSL Capital LLC, 6.500%, 02/15/2029(f)			80,000				56,695
Specialty Retail - 0.80%
Asbury Automotive Group, Inc.:
4.750%, 03/01/2030			150,000				133,457
5.000%, 02/15/2032(f)			295,000				257,166
Bath & Body Works, Inc., 6.750%, 07/01/2036			150,000				135,170
Carvana Co., 5.500%, 04/15/2027(f)			150,000				100,544
Group 1 Automotive, Inc., 4.000%, 08/15/2028(f)			80,000				70,521
Iron Mountain, Inc.:
7.000%, 02/15/2029(f)			124,000				124,342
4.875%, 09/15/2029(f)			130,000				116,485
5.625%, 07/15/2032(f)			410,000				367,382
							1,305,067
Technology Hardware, Storage & Peripherals - 0.35%
Seagate HDD Cayman, 8.250%, 12/15/2029(f)			240,000				250,889

 

See Notes to Financial Statements.

Semi-Annual Report | June 30, 2023

45

Blackstone Long-Short Credit Income Fund

Portfolio of Investments

June 30, 2023 (Unaudited)

 

		Principal Amount				Value
Technology Hardware, Storage & Peripherals (continued)
Xerox Holdings Corp., 5.500%, 08/15/2028(f)		$	385,000			$	327,915
							578,804
TOTAL CORPORATE BONDS
(Cost $40,369,186)							40,253,930

 

		Shares				Value
COMMON STOCK - 0.35%
Health Care Equipment & Supplies - 0.35%
Carestream Health Holdings Inc(b)(g)			76,071				570,533
TOTAL COMMON STOCK
(Cost $1,440,785)							570,533
SHORT TERM INVESTMENTS - 3.02%
Fidelity Treasury Portfolio
(4.33% 7-Day Yield)			4,951,095				4,951,095
TOTAL SHORT TERM INVESTMENTS
(Cost $4,951,095)							4,951,095
Total Investments- 165.80%
(Cost $281,692,883)							271,951,769
Liabilities in Excess of Other Assets - (4.87)%							(7,994,624	)
Mandatory Redeemable Preferred Shares - (12.27)%
(liquidation preference plus distributions payable on term preferred shares)							(20,128,356	)
Leverage Facility - (48.65)%							(79,800,000	)
Net Assets - 100.00%						$	164,028,789

 

Amounts above are shown as a percentage of net assets as of June 30, 2023.

 

Investment Abbreviations:

LIBOR - London Interbank Offered Rate

SOFR - Secured Overnight Financing Rate

 

Reference Rates:

1M US L - 1 Month LIBOR as of June 30, 2023 was 5.22%

3M US L - 3 Month LIBOR as of June 30, 2023 was 5.55%

6M US L - 6 Month LIBOR as of June 30, 2023 was 5.76%

1M US SOFR- 1 Month SOFR as of June 30, 2023 was 5.06%

3M US SOFR - 3 Month SOFR as of June 30, 2023 was 5.00%

6M US SOFR - 6 Month SOFR as of June 30, 2023 was 4.78%

PRIME - US Prime Rate as of June 30, 2023 was 8.25%

 

(a)

Floating or variable rate security. The reference rate is described above. The rate in effect as of June 30, 2023 is based on the reference rate plus the displayed spread as of the security's last reset date. Where applicable, the reference rate is subject to a floor rate.

(b)

Level 3 assets valued using significant unobservable inputs as a result of unavailable quoted prices from an active market or the unavailability of other significant observable inputs.

 

See Notes to Financial Statements.

46	www.blackstone-credit.com

Blackstone Long-Short Credit Income Fund

Portfolio of Investments

June 30, 2023 (Unaudited)

 

(c)

Security is in default as of period end.

(d)

A portion of this position was not funded as of June 30, 2023. The Portfolio of Investments records only the funded portion of each position. As of June 30, 2023, the Fund has unfunded delayed draw loans in the amount of $176,789. Fair value of these unfunded delayed draws was $170,927.

(e)

Represents a payment-in-kind (“PIK”) security which may pay interest/dividend in additional par/shares.

(f)

Security exempt from registration under Rule 144A of the Securities Act of 1933. Total market value of Rule 144A securities amounts to $39,047,430, which represented approximately 23.81% of net assets as of June 30, 2023. Such securities may normally be sold to qualified institutional buyers in transactions exempt from registration.

(g)

Non-income producing security.

  

See Notes to Financial Statements.

Semi-Annual Report | June 30, 2023

47

Blackstone Strategic Credit 2027 Term Fund

Portfolio of Investments

June 30, 2023 (Unaudited)

 

		Principal Amount				Value
FLOATING RATE LOAN INTERESTS(a) - 129.78%
Aerospace & Defense - 5.86%
Amentum Government Services Holdings LLC, First Lien Term Loan, 3M US SOFR + 4.00%, 02/15/2029(b)		$	4,601,572			$	4,509,541
Atlas CC Acquisition Corp., First Lien B Term Loan, 3M US SOFR + 4.25%, 0.75% Floor, 05/25/2028			6,357,405				5,556,276
Atlas CC Acquisition Corp., First Lien C Term Loan, 3M US SOFR + 4.25%, 0.75% Floor, 05/25/2028			1,293,031				1,130,089
Avolon TLB Borrower 1 (US) TL, First Lien Term Loan, 1M US SOFR + 2.50%, 06/22/2028			2,156,379				2,157,921
LSF11 Trinity BidCo, Inc., TL, First Lien Term Loan, 1M US SOFR + 4.50%, 06/14/2030(b)			3,038,132				3,034,334
Nordam Group LLC, First Lien Initial Term Loan, 1M US SOFR + 5.50%, 04/09/2026			4,596,000				3,946,815
Peraton Corp., First Lien B Term Loan, 1M US L + 3.75%, 0.75% Floor, 02/01/2028			7,259,273				7,146,500
TransDigm Inc., TLH, First Lien Term Loan, 3M US L + 2.25%, 02/22/2027			292,847				293,289
TransDigm Inc., TLI, First Lien Term Loan, 3M US SOFR + 3.25%, 08/24/2028			2,857,673				2,859,330
Vertex Aerospace Corp., First Lien Term Loan, 1M US SOFR + 3.75%, 12/06/2028			1,777,500				1,779,358
							32,413,453
Air Freight & Logistics - 0.56%
WWEX UNI TopCo Holdings LLC, First Lien Initial Term Loan, 3M US SOFR + 4.00%, 0.75% Floor, 07/26/2028			3,252,121				3,096,979
Automobile Components - 2.86%
Belron Luxembourg Sarl, First Lien Term Loan, 1M US SOFR + 2.85%, 0.50% Floor, 04/18/2029			1,073,663				1,075,681
Burgess Point Purchaser Corp., First Lien Term Loan, 1M US SOFR + 5.25%, 07/25/2029			4,313,190				4,104,087
Clarios Global LP, TL, First Lien Term Loan, 3M US SOFR + 3.75%, 05/06/2030			4,118,232				4,113,722
Mavis Tire Express Services Topco Corp., First Lien Term Loan, 1M US SOFR + 4.00%, 0.75% Floor, 05/04/2028			4,624,565				4,591,338
Phinia Inc., TL, First Lien Term Loan, 6M US SOFR + 3.75%, 06/08/2028			1,913,333				1,913,333
							15,798,161
Beverages - 1.00%
Triton Water Holdings, Inc., First Lien Initial Term Loan, 3M US SOFR + 3.50%, 0.50% Floor, 03/31/2028			5,712,198				5,536,376
Biotechnology - 1.19%
Grifols Worldwide Operations, TLB, First Lien Term Loan, 3M US SOFR + 2.00%, 11/15/2027			6,688,961				6,592,807
Broadline Retail - 0.83%
Pilot Travel Centers LLC, First Lien Term Loan, 1M US L + 2.00%, 08/04/2028			4,576,590				4,575,767
Building Products - 4.01%
Chariot Buyer LLC, First Lien Term Loan:
1M US SOFR + 3.25%, 0.50% Floor, 11/03/2028			3,307,906				3,238,506
3M US L + 7.51%, 0.50% Floor, 10/31/2029			3,827,619				3,826,662
Cornerstone Building Brands, Inc., First Lien Tranche B Term Loan, 1M US SOFR + 3.25%, 0.50% Floor, 04/12/2028			2,066,957				1,986,873
CP Atlas Buyer, Inc., First Lien B Term Loan, 3M US SOFR + 3.50%, 0.50% Floor, 11/23/2027			4,938,530				4,661,972
Kodiak Building Partners Inc. TLB, First Lien Term Loan, 3M US SOFR + 3.25%, 0.75% Floor, 03/12/2028			4,232,820				4,137,581
Oscar Acquisitionco LLC, First Lien Term Loan, 3M US SOFR + 4.50%, 0.50% Floor, 04/29/2029			4,448,475				4,353,945
							22,205,539

 

See Notes to Financial Statements.

48	www.blackstone-credit.com

Blackstone Strategic Credit 2027 Term Fund

Portfolio of Investments

June 30, 2023 (Unaudited)

 

		Principal Amount				Value
Capital Markets - 1.47%
Apex Group Treasury, Ltd., First Lien USD Term Loan, 3M US L + 3.75%, 0.50% Floor, 07/27/2028		$	1,940,723			$	1,918,890
Focus Financial Partners LLC, First Lien Term Loan:
1M US SOFR + 3.50%, 06/30/2028			1,575,918				1,569,418
3M US L + 2.50%, 0.50% Floor, 06/30/2028			4,717,198				4,669,390
							8,157,698
Chemicals - 2.07%
Ecovyst Catalyst Technologies LLC, First Lien Term Loan, 3M US L + 2.50%, 0.50% Floor, 06/09/2028			3,233,503				3,224,158
Geon Performance Solutions LLC, First Lien Term Loan, 3M US L + 4.50%, 0.75% Floor, 08/18/2028			3,044,460				3,007,363
Hyperion Materials & Technologies, Inc., First Lien Initial Term Loan, 1M US L + 4.25%, 0.50% Floor, 08/30/2028			2,186,163				2,173,187
Messer Industries LLC Tl, First Lien Term Loan, 3M US L + 2.50%, 03/02/2026			3,041,947				3,043,940
							11,448,648
Commercial Services & Supplies - 4.90%
Access CIG LLC, Second Lien Initial Term Loan, 1M US L + 7.75%, 02/27/2026			3,143,115				2,967,634
Allied Universal Holdco LLC, First Lien Initial U.S. Dollar Term Loan, 1M US SOFR + 3.75%, 0.50% Floor, 05/12/2028			6,031,946				5,874,452
Covanta 11/21 TLB, First Lien Term Loan, 3M US L + 2.50%, 11/30/2028			4,807,511				4,772,825
Covanta 11/21 TLC, First Lien Term Loan, 1M US SOFR + 2.50%, 11/30/2028			364,672				362,041
Covanta Holding Corporation, TL, First Lien Term Loan:
1M US SOFR + 3.00%, 11/30/2028			85,029				84,803
1M US SOFR + 3.00%, 11/30/2028			1,133,721				1,130,711
DG Investment Intermediate Holdings 2, Inc., Second Lien Initial Term Loan, 1M US L + 6.75%, 0.75% Floor, 03/30/2029			1,885,714				1,679,464
Garda World Security Corp., First Lien B-2 Term Loan, 1M US SOFR + 4.25%, 10/30/2026			3,500,936				3,487,808
Revspring, Inc., First Lien Initial Term Loan, 3M US SOFR + 4.00%, 10/11/2025			3,438,000				3,314,816
TMF Sapphire Bidco B.V., TLB, First Lien Term Loan, 1M US SOFR + 5.00%, 05/05/2028			850,909				852,505
United Site Cov-Lite, First Lien Term Loan, 3M US L + 4.25%, 12/15/2028			3,162,457				2,606,260
							27,133,319
Communications Equipment - 0.43%
Commscope, Inc., First Lien Initial Term Loan, 1M US L + 3.25%, 04/06/2026			1,890,181				1,814,810
MLN US HoldCo LLC, First Lien B Term Loan, 3M US SOFR + 4.50%, 11/30/2025			2,330,432				559,304
							2,374,114
Construction & Engineering - 1.21%
Aegion Corp., First Lien Initial Term Loan, 1M US SOFR + 4.75%, 0.75% Floor, 05/17/2028			4,543,518				4,417,162
Brookfield WEC Holdings, Inc., First Lien Initial (2021) Term Loan, 1M US L + 2.75%, 0.50% Floor, 08/01/2025			1,723,864				1,722,425
Tutor Perini Corp., First Lien B Term Loan, 3M US L + 4.75%, 1.00% Floor, 08/18/2027			589,151				534,024
							6,673,611
Construction Materials - 1.29%
Quickrete Holdings, Inc., First Lien Initial Term Loan, L + 4.022%, 02/01/2027			2,643,152				2,641,368
White Cap Buyer LLC, First Lien Initial Closing Date Term Loan, 1M US SOFR + 3.75%, 0.50% Floor, 10/19/2027			4,523,017				4,492,555
							7,133,923
Containers & Packaging - 1.08%
Berry Global, Inc., First Lien Term Loan, 1M US L + 1.75%, 07/01/2026			841,632				841,640
LABL, Inc., First Lien Term Loan, 1M US SOFR + 5.00%, 10/29/2028			1,646,357				1,632,882

 

See Notes to Financial Statements.

Semi-Annual Report | June 30, 2023

49

Blackstone Strategic Credit 2027 Term Fund

Portfolio of Investments

June 30, 2023 (Unaudited)

 

		Principal Amount				Value
Containers & Packaging (continued)
Strategic Materials Holding Corp., Second Lien Initial Term Loan, 3M US SOFR + 7.75%, 1.00% Floor, 10/31/2025		$	2,666,667			$	266,667
Tekni-Plex, Inc., First Lien Tranche B-3 Initial Term Loan, 3M US L + 4.00%, 0.50% Floor, 09/15/2028			3,273,553				3,229,131
							5,970,320
Distributors - 0.76%
LBM Acquisition LLC, First Lien Initial Term Loan, 3M US L + 3.75%, 0.75% Floor, 12/17/2027			4,343,293				4,182,678
Diversified Consumer Services - 5.04%
Element Materials Technology Group Holdings DTL, First Lien Term Loan, 3M US SOFR + 4.25%, 06/22/2029			963,903				947,034
Element Materials Technology Group Holdings TL, First Lien Term Loan, 3M US SOFR + 4.25%, 06/22/2029			2,088,454				2,051,907
Loyalty Ventures, Inc., First Lien Term Loan, PRIME + 3.50%, 11/03/2027(c)			1,435,323				177,980
McKissock Investment Holdings, LLC, First Lien Term Loan, 3M US SOFR + 5.00%, 03/12/2029			2,908,879				2,821,612
Prime Security Services Borrower LLC, First Lien 2021 Refinancing B-1 Term Loan, 1M US SOFR + 2.75%, 0.75% Floor, 09/23/2026			6,509,656				6,515,938
Rinchem Company, Inc., First Lien Term Loan, 3M US SOFR + 4.25%, 03/02/2029(b)			1,497,345				1,413,119
St. George's University Scholastic Services LLC, First Lien Term Loan B Term Loan, 1M US SOFR + 3.25%, 0.50% Floor, 02/10/2029			4,462,935				4,435,064
TruGreen LP, First Lien Term Loan, 1M US SOFR + 4.00%, 0.75% Floor, 11/02/2027			4,267,176				3,938,603
Weld North Education LLC, First Lien Term Loan, 1M US SOFR + 3.75%, 0.50% Floor, 12/21/2027			5,681,409				5,595,478
							27,896,735
Diversified Telecommunication Services - 3.67%
Level 3 Financing, Inc., First Lien Term Loan, 1M US SOFR + 1.75%, 03/01/2027			9,011,382				8,417,217
Lumen Technologies, Inc., First Lien Term Loan, 1M US SOFR + 2.25%, 03/15/2027			3,676,526				2,847,010
Telenet Financing USD LLC, First Lien Term Loan, 1M US L + 2.00%, 04/30/2028			5,732,292				5,640,174
Telesat Canada, First Lien B-5 Term Loan, 3M US L + 2.75%, 12/07/2026			2,655,521				1,646,091
Zacapa S.A.R.L., First Lien Term Loan, 3M US SOFR + 4.00%, 03/22/2029			1,800,000				1,757,115
							20,307,607
Electric Utilities - 0.49%
Miron Technologies, Inc., First Lien Term Loan, 3M US SOFR + 2.75%, 10/20/2028			2,740,471				2,730,769
Electrical Equipment - 1.55%
Generac Power Systems, Inc., First Lien Term Loan, 1M US SOFR + 1.75%, 12/13/2026			4,000,000				3,995,000
Madison IAQ LLC, First Lien Initial Term Loan, 3M US L + 3.25%, 0.50% Floor, 06/21/2028			4,650,712				4,561,186
							8,556,186
Electronic Equipment, Instruments & Components - 0.75%
Ingram Micro, Inc., First Lien Initial Term Loan, 3M US L + 3.50%, 0.50% Floor, 06/30/2028			2,956,962				2,951,433
LTI Holdings, Inc., First Lien Term Loan, 3M US L + 4.75%, 07/24/2026			1,225,852				1,196,738
							4,148,171
Energy Equipment & Services - 0.01%
EnergySolutions LLC, First Lien Initial Term Loan, 3M US L + 3.75%, 1.00% Floor, 05/09/2025			84,405				83,099
Entertainment - 1.99%
Amplify Finco Pty, Ltd., First Lien U.S. Dollar Term Loan, 3M US L + 4.15%, 0.75% Floor, 11/26/2026			3,973,196				3,963,263
CE Intermediate I LLC, First Lien Term Loan, 3M US L + 4.00%, 0.50% Floor, 11/10/2028(b)			2,519,138				2,481,351

 

See Notes to Financial Statements.

50	www.blackstone-credit.com

Blackstone Strategic Credit 2027 Term Fund

Portfolio of Investments

June 30, 2023 (Unaudited)

 

		Principal Amount				Value
Entertainment (continued)
Live Nation Entertainment, Inc., First Lien Term Loan, 1M US SOFR + 1.75%, 10/19/2026		$	4,588,114			$	4,584,306
							11,028,920
Financial Services - 3.20%
Lereta, LLC, First Lien Term Loan, 1M US L + 5.25%, 07/30/2028			1,417,858				1,304,429
Mitchell International, Inc., First Lien Term Loan, 1M US L + 3.75%, 10/15/2028			4,634,611				4,540,482
Mitchell International, Inc., Second Lien Term Loan, 1M US L + 6.50%, 10/15/2029			2,706,186				2,401,740
Polaris Newco LLC, First Lien Dollar Term Loan, 3M US L + 4.00%, 0.50% Floor, 06/02/2028			5,536,458				5,111,978
The Citco Group Limited, TLB, First Lien Term Loan, 3M US SOFR + 3.50%, 04/27/2028(b)			4,311,667				4,317,056
							17,675,685
Food Products - 1.98%
CH Guenther 11/21 TL, First Lien Term Loan, 1M US SOFR + 3.00%, 12/08/2028(b)			3,750,000				3,726,562
Froneri International, Ltd., First Lien Facility B2 Term Loan, 1M US SOFR + 2.25%, 01/29/2027			5,485,725				5,464,468
Snacking Investments BidCo Pty, Ltd., First Lien Initial US Term Loan, 3M US SOFR + 4.00%, 1.00% Floor, 12/18/2026			1,769,785				1,764,812
							10,955,842
Ground Transportation - 1.83%
Avis Budget Car Rental LLC, First Lien Term Loan, 1M US SOFR + 1.75%, 08/06/2027			4,316,452				4,270,590
Uber Technologies, Inc., TLB, First Lien Term Loan, 3M US SOFR + 2.75%, 03/03/2030			4,626,807				4,632,313
XPO, Inc., TLB, First Lien Term Loan, 1M US SOFR + 2.00%, 05/24/2028			1,196,000				1,201,663
							10,104,566
Health Care Equipment & Supplies - 3.02%
Auris Luxembourg III SARL, First Lien Facility B2 Term Loan, 6M US L + 3.75%, 02/27/2026			5,857,373				5,560,112
Carestream Health, Inc. TL 1L, First Lien Term Loan, 3M US L + 7.50%, 09/30/2027			369,147				270,215
Femur Buyer, Inc., First Lien Initial Term Loan, 3M US L + 4.50%, 03/05/2026			972,376				899,448
Tecostar Holdings, Inc., First Lien 2017 Term Loan, 3M US L + 3.50%, 1.00% Floor, 05/01/2024			5,222,154				5,169,933
Viant Medical Holdings, Inc., First Lien Initial Term Loan, 1M US L + 3.75%, 07/02/2025			1,158,067				1,125,983
YI LLC, First Lien Initial Term Loan, 1M US L + 4.00%, 1.00% Floor, 11/07/2024			3,832,739				3,682,630
							16,708,321
Health Care Providers & Services - 10.82%
Covenant Surgical Partners, Inc., First Lien Delayed Draw Term Loan, 6M US L + 4.00%, 07/01/2026			800,935				626,732
Covenant Surgical Partners, Inc., First Lien Initial Term Loan, 3M US L + 4.00%, 07/01/2026			3,855,058				3,016,583
DaVita, Inc., First Lien B Term Loan, 1M US L + 1.75%, 08/12/2026			3,271,595				3,229,391
Electron Bidco, Inc., First Lien Term Loan, 1M US SOFR + 3.00%, 11/01/2028			4,576,826				4,563,942
Envision Healthcare Corp., First Lien Term Loan:
3M US SOFR + 4.25%, 03/31/2027(c)			3,911,461				883,756
3M US SOFR + 7.88%, 03/31/2027(c)			606,179				667,554
Global Medical Response, Inc., First Lien 2018 New Term Loan, 1M US SOFR + 4.25%, 1.00% Floor, 03/14/2025			5,483,056				3,111,634
Global Medical Response, Inc., First Lien 2020 Refinancing Term Loan, 1M US L + 4.25%, 1.00% Floor, 10/02/2025			910,056				516,457
Heartland Dental LLC, First Lien 2021 Incremental Term Loan, 3M US L + 4.00%, 04/30/2025			155,874				154,510
Heartland Dental, LLC, TL, First Lien Term Loan, 1M US SOFR + 5.00%, 04/28/2028			5,059,031				4,892,488
LifePoint Health, Inc., First Lien B Term Loan, 3M US L + 3.75%, 11/16/2025			4,328,127				4,019,164
Loire UK Midco 3, Ltd., First Lien Facility B2 Term Loan, 1M US L + 3.50%, 0.75% Floor, 04/21/2027			2,933,808				2,860,463
Medical Solutions LLC, First Lien Term Loan, 3M US SOFR + 3.50%, 11/01/2028			31,929				30,077

 

See Notes to Financial Statements.

Semi-Annual Report | June 30, 2023

51

Blackstone Strategic Credit 2027 Term Fund

Portfolio of Investments

June 30, 2023 (Unaudited)

 

		Principal Amount				Value
Health Care Providers & Services (continued)
NAPA Management Services Corp., First Lien Term Loan, 3M US SOFR + 5.25%, 0.75% Floor, 02/23/2029		$	2,698,597			$	1,890,367
National Mentor Holdings, Inc., TL, First Lien Term Loan, 1M US L + 3.75%, 03/02/2028			6,859,837				5,219,924
National Mentor Holdings, Inc., TLC, First Lien Term Loan, 3M US SOFR + 3.75%, 03/02/2028			195,103				148,461
Onex TSG Intermediate Corp., First Lien Initial Term Loan, 3M US SOFR + 4.75%, 0.75% Floor, 02/28/2028			4,382,581				3,916,932
Pathway Vet Alliance LLC, First Lien 2021 Replacement Term Loan, 1M US L + 3.75%, 03/31/2027			4,447,146				3,939,438
Pediatric Associates Holding Co. LLC, First Lien Term Loan:
3M US L + 1.88%, 12/29/2028(d)			352,786				345,995
3M US L + 3.25%, 0.50% Floor, 12/29/2028			2,737,569				2,684,870
PetVet Care Centers LLC, First Lien 2021 Replacement Term Loan, 1M US L + 3.50%, 0.75% Floor, 02/14/2025			4,862,723				4,772,763
PetVet Care Centers LLC, Second Lien Initial Term Loan, 1M US L + 6.25%, 02/13/2026			3,290,000				3,022,688
Radiology Partners, Inc., First Lien Term Loan, 1M US SOFR + 4.25%, 07/09/2025			2,849,358				2,161,067
Radnet Management, Inc., First Lien Initial Term Loan, 1M US SOFR + 3.00%, 0.75% Floor, 04/23/2028			3,188,325				3,186,077
							59,861,333
Health Care Technology - 2.42%
AthenaHealth Group, Inc. Delayed Draw, First Lien Term Loan, 3M US L + 3.50%, 02/15/2029(d)			141,603				136,647
AthenaHealth Group, Inc., First Lien Term Loan, 1M US L + 5.80%, 02/15/2029			5,376,409				5,188,234
GHX Ultimate Parent Corp, TL, First Lien Term Loan, 3M US L + 0.00%, 06/30/2027			3,219,507				3,228,569
Project Ruby Ultimate Parent Corp., First Lien Closing Date Term Loan, 1M US L + 3.25%, 0.75% Floor, 03/10/2028			2,325,729				2,277,342
Verscend Holding Corp., First Lien B-1 Term Loan, 1M US L + 4.00%, 08/27/2025			2,570,331				2,572,734
							13,403,526
Hotels, Restaurants & Leisure - 5.81%
Aramark Intermediate HoldCo Corp., First Lien U.S. B-4 Term Loan, 1M US SOFR + 1.75%, 01/15/2027			1,500,000				1,488,285
Aramark Services, Inc., First Lien Term Loan, 1M US L + 2.50%, 04/06/2028			1,379,148				1,379,838
Aramark Services, Inc., TL, First Lien Term Loan, 1M US SOFR + 2.50%, 06/22/2030(b)			119,199				119,348
Bally's Corp., First Lien Term Loan, 1M US L + 3.25%, 0.50% Floor, 10/02/2028			4,536,284				4,441,952
Caesars Entertainment, Inc., First Lien Term Loan, 1M US SOFR + 3.25%, 0.50% Floor, 02/06/2030			4,123,665				4,129,046
Carnival Corp., First Lien Term Loan, 1M US SOFR + 3.25%, 0.75% Floor, 10/18/2028			6,106,023				6,062,762
Fertitta Entertainment, LLC, First Lien Term Loan, 1M US SOFR + 4.00%, 01/27/2029			1,790,932				1,770,972
Flutter Financing B.V., First Lien Term Loan, 3M US SOFR + 3.25%, 0.50% Floor, 07/22/2028			2,164,444				2,170,959
Tacala Investment Corp., Second Lien Initial Term Loan, 3M US L + 7.50%, 0.75% Floor, 02/04/2028			3,949,483				3,742,135
Whatabrands LLC, First Lien Initial B Term Loan, 1M US SOFR + 3.25%, 0.50% Floor, 08/03/2028			6,842,456				6,810,913
							32,116,210
Independent Power and Renewable Electricity Producers - 1.07%
Calpine Corp., First Lien Term Loan, 1M US L + 2.00%, 04/05/2026			5,457,364				5,459,056
Eastern Power LLC, First Lien Term Loan, 1M US SOFR + 3.75%, 1.00% Floor, 10/02/2025			453,221				437,898
							5,896,954
Industrial Conglomerates - 3.51%
Bettcher Industries, Inc., First Lien Term Loan, 1M US SOFR + 4.00%, 12/14/2028			2,449,642				2,386,882
Engineered Machinery Holdings, Inc., First Lien Term Loan, 3M US L + 3.50%, 0.75% Floor,05/19/2028			4,396,709				4,319,767

 

See Notes to Financial Statements.

52	www.blackstone-credit.com

Blackstone Strategic Credit 2027 Term Fund

Portfolio of Investments

June 30, 2023 (Unaudited)

 

		Principal Amount				Value
Industrial Conglomerates (continued)
Justrite Safety Group, First Lien Delayed Draw Term Loan, 1M US SOFR + 4.50%, 06/28/2026		$	221,239			$	210,107
Justrite Safety Group, First Lien Initial Term Loan, 1M US SOFR + 4.50%, 06/28/2026			4,092,422				3,886,512
Redwood Star Merger Sub, Inc., First Lien Term Loan, 1M US SOFR + 4.50%, 04/05/2029			4,324,962				4,279,918
Tailwind Smith Cooper Intermediate Corp., First Lien Initial Term Loan, 3M US SOFR + 5.00%, 05/28/2026			4,473,227				4,360,278
							19,443,464
Insurance - 2.96%
AmWINS Group, Inc., First Lien Term Loan:
1M US L + 2.25%, 0.75% Floor, 02/19/2028			6,075,697				6,030,159
1M US SOFR + 2.75%, 0.75% Floor, 02/19/2028			662,574				661,816
Broadstreet Partners, Inc., TLB3, First Lien Term Loan, 3M US SOFR + 4.00%, 01/27/2029			4,523,118				4,506,157
HIG Finance 2, Ltd., First Lien 2021 Dollar Refinancing Term Loan, 1M US L + 3.25%, 0.75% Floor, 11/12/2027			1,233,673				1,229,047
Hyperion Refinance S.a r.l. TL, First Lien Term Loan, 3M US SOFR + 0.00%, 0.50% Floor, 04/18/2030			1,899,890				1,898,702
NFP Corp., First Lien Closing Date Term Loan, 1M US SOFR + 3.25%, 02/15/2027			2,067,939				2,030,271
							16,356,152
Interactive Media & Services - 1.13%
Adevinta ASA, First Lien Facility B2 Term Loan, 3M US L + 2.75%, 0.75% Floor, 06/26/2028			1,193,083				1,196,728
MH Sub I LLC, First Lien Term Loan, 1M US SOFR + 4.25%, 05/03/2028			3,280,000				3,151,260
MH Sub I LLC, Second Lien 2021 Replacement Term Loan, 1M US SOFR + 6.25%, 02/23/2029			2,180,856				1,908,598
							6,256,586
IT Services - 3.35%
AG Group Holdings, Inc., First Lien Term Loan, 3M US SOFR + 4.00%, 12/29/2028(b)			4,412,026				4,312,755
Dcert Buyer, Inc., Second Lien First Amendment Refinancing Term Loan, 6M US SOFR + 7.00%, 02/19/2029			4,963,456				4,574,668
Newfold Digital Holdings Group, Inc., First Lien Initial Term Loan, 3M US L + 3.50%, 0.75% Floor, 02/10/2028			5,029,501				4,696,296
Vaco Holdings, LLC, First Lien Term Loan, 3M US SOFR + 5.00%, 01/21/2029			4,022,410				3,678,012
World Wide Technology Holding Co., LLC, TL, First Lien Term Loan, 1M US SOFR + 3.25%, 03/01/2030			1,283,495				1,285,901
							18,547,632
Leisure Products - 0.65%
Recess Holdings, Inc., First Lien Initial Term Loan, 3M US L + 3.75%, 1.00% Floor, 09/30/2024			3,592,969				3,599,706
Life Sciences Tools & Services - 2.31%
Catalent Pharma Solutions, Inc., First Lien Term Loan, 1M US L + 2.00%, 0.50% Floor, 02/22/2028			5,276,388				5,179,091
Curia Global, Inc., First Lien 2021 Term Loan, 3M US SOFR + 3.75%, 0.75% Floor, 08/30/2026			2,468,522				2,134,382
Maravai Intermediate Holdings LLC, First Lien Term Loan, 1M US L + 3.25%, 0.50% Floor, 10/19/2027			1,036,486				1,037,134
Parexel International Corporation, First Lien Term Loan, 3M US L + 3.25%, 0.50% Floor, 11/15/2028			4,438,791				4,409,939
							12,760,546
Machinery - 0.99%
Pro Mach Group, Inc., First Lien Closing Date Initial Term Loan, 3M US L + 4.00%, 1.00% Floor, 08/31/2028			3,523,049				3,519,033
Titan Acquisition, Ltd., First Lien Initial Term Loan, 3M US L + 3.00%, 03/28/2025			1,984,293				1,941,710
							5,460,743

 

See Notes to Financial Statements.

Semi-Annual Report | June 30, 2023

53

Blackstone Strategic Credit 2027 Term Fund

Portfolio of Investments

June 30, 2023 (Unaudited)

 

		Principal Amount				Value
Media - 7.75%
Champ Acquisition Corp., First Lien Initial Term Loan, 6M US L + 5.50%, 12/19/2025		$	3,610,160			$	3,615,124
Charter Communications Operating LLC, First Lien Term Loan, 1M US SOFR + 1.75%, 02/01/2027			3,432,217				3,415,759
Cogeco Communications USA II LP, First Lien Term Loan, 1M US L + 2.00%, 01/03/2025			4,479,379				4,481,238
iHeartCommunications, Inc., First Lien New Term Loan, 1M US SOFR + 3.00%, 05/01/2026			1,239,437				1,076,686
Radiate Holdco, LLC,, First Lien Term Loan, 1M US L + 3.25%, 09/25/2026			3,969,773				3,323,197
Univision Communications, Inc., First Lien Term Loan:
1M US L + 3.25%, 0.75% Floor, 03/15/2026			5,274,630				5,237,893
3M US SOFR + 4.25%, 06/24/2029			636,102				635,835
UPC Financing Partnership, First Lien Facility AT Term Loan, 1M US L + 2.25%, 04/30/2028			7,294,177				7,193,882
Virgin Media Bristol LLC, First Lien Term Loan:
1M US L + 2.50%, 01/31/2028			5,347,933				5,310,176
1M US L + 3.25%, 01/31/2029			1,500,000				1,495,710
Ziggo Financing Partnership, First Lien I Facility Term Loan, 1M US L + 2.50%, 04/30/2028			7,180,820				7,083,376
							42,868,876
Mortgage Real Estate Investment - 0.32%
Blackstone Mortgage Trust, Inc., First Lien Term Loan:
1M US L + 2.75%, 0.50% Floor, 04/23/2026			952,690				900,292
1M US SOFR + 2.25%, 04/23/2026			952,577				895,899
							1,796,191
Oil, Gas & Consumable Fuels - 1.98%
Buckeye Partners LP, First Lien Term Loan, 1M US L + 2.25%, 11/01/2026			3,473,282				3,454,110
Freeport LNG, First Lien Term Loan, 3M US L + 3.50%, 12/21/2028			6,388,497				6,270,821
Whitewater Whistler Holdings, LLC TLB 1L, First Lien Term Loan, 3M US SOFR + 3.25%, 02/15/2030			1,202,621				1,203,373
							10,928,304
Passenger Airlines - 2.78%
Air Canada, First Lien B Term Loan, 3M US L + 3.50%, 0.75% Floor, 08/11/2028			3,979,950				3,985,283
American Airlines, Inc., First Lien 2020 Term Loan, 3M US SOFR + 1.75%, 01/29/2027			1,454,752				1,420,201
American Airlines, Inc., First Lien Term Loan, 6M US SOFR + 2.75%, 02/15/2028			1,781,083				1,751,517
Apple Bidco LLC, First Lien Term Loan, 1M US SOFR + 4.00%, 0.50% Floor, 09/22/2028			1,899,878				1,892,753
Brown Group Holding LLC, First Lien Term Loan, 1M US SOFR + 2.50%, 0.50% Floor, 06/07/2028			3,422,008				3,374,596
United AirLines, Inc., First Lien Class B Term Loan, 3M US L + 3.75%, 0.75% Floor, 04/21/2028			2,934,486				2,937,759
							15,362,109
Pharmaceuticals - 1.47%
Elanco Animal Health, Inc., First Lien B Term Loan, 1M US SOFR + 1.75%, 08/01/2027			5,143,504				5,056,707
Padagis LLC, First Lien Initial Term Loan, 3M US L + 4.75%, 0.50% Floor, 07/06/2028			3,261,635				3,094,476
							8,151,183
Professional Services - 7.58%
AlixPartners, LLP, First Lien USD B Term Loan, 1M US SOFR + 2.50%, 0.50% Floor, 02/04/2028			2,580,203				2,577,945
AqGen Island Holdings, Inc., First Lien Term Loan, 3M US L + 6.50%, 08/02/2029			5,708,001				5,137,200
CoreLogic, Inc., First Lien Initial Term Loan, 1M US L + 3.50%, 0.50% Floor, 06/02/2028			5,685,242				5,146,565
CoreLogic, Inc., Second Lien Initial Term Loan, 1M US L + 6.50%, 0.50% Floor, 06/04/2029			1,786,047				1,455,628
Corporation Service Company, First Lien Term Loan, 1M US SOFR + 3.25%, 11/02/2029			1,701,550				1,706,442
Deerfield Dakota Holding LLC, Second Lien 2021 Replacement Term Loan, 3M US L + 6.75%, 0.75% Floor, 04/07/2028			960,000				900,302

 

See Notes to Financial Statements.

54	www.blackstone-credit.com

Blackstone Strategic Credit 2027 Term Fund

Portfolio of Investments

June 30, 2023 (Unaudited)

 

		Principal Amount				Value
Professional Services (continued)
Dun & Bradstreet Corp., First Lien Initial Borrowing Term Loan, 1M US SOFR + 3.25%, 02/06/2026		$	3,044,829			$	3,051,299
EP Purcasher, LLC, First Lien Term Loan, 3M US L + 3.50%, 11/06/2028			149,621				146,816
Equiniti Group PLC, First Lien Term Loan, 6M US SOFR + 4.50%, 12/11/2028			1,006,491				1,009,636
Galaxy US Opco Inc. TL, First Lien Term Loan, 1M US SOFR + 4.75%, 04/29/2029			2,041,522				1,924,135
Minotaur Acquisition, Inc., First Lien B Term Loan, 1M US SOFR + 4.75%, 03/27/2026			3,579,169				3,528,846
National Intergovernmental Purchasing Alliance Company, Second Lien Initial Term Loan, 3M US SOFR + 7.50%, 05/26/2026			4,091,168				3,845,698
Outcomes Group Holdings, Inc., Second Lien Initial Term Loan, 1M US L + 7.50%, 10/26/2026			443,787				437,130
Output Services Group, Inc. TLA 1L, First Lien Term Loan, 3M US SOFR + 5.25%, 1.50% PIK, 06/29/2026(c)(e)			1,703,134				464,104
Trans Union LLC, First Lien Term Loan, 1M US SOFR + 1.75%, 11/16/2026			5,699,459				5,691,936
TransUnion 11/21 B6 TLB, First Lien Term Loan, 1M US L + 2.25%, 12/01/2028			1,161,754				1,160,360
TRC Companies, First Lien Term Loan, 3M US L + 3.75%, 12/08/2028			1,694,017				1,670,725
TRC Companies, Second Lien Term Loan, 1M US L + 6.75%, 12/07/2029			2,088,000				1,926,180
VT Topco, Inc., First Lien 2021 Term Loan, 1M US SOFR + 3.75%, 0.75% Floor, 08/01/2025			160,568				158,742
							41,939,689
Semiconductors & Semiconductor Equipment - 0.90%
Coherent Corp., First Lien Term Loan, 1M US SOFR + 2.75%, 0.50% Floor, 07/02/2029			4,976,885				4,975,342
Software - 13.74%
Apttus Corp., First Lien Initial Term Loan, 3M US L + 4.25%, 0.75% Floor, 05/08/2028			1,811,634				1,779,550
CDK Global, Inc., First Lien Term Loan, 3M US SOFR + 4.50%, 07/06/2029			5,092,516				5,084,215
Cloudera, Inc., First Lien Term Loan, 1M US SOFR + 3.75%, 0.50% Floor, 10/08/2028			4,781,757				4,678,662
Connectwise, LLC, First Lien Term Loan, 1M US L + 3.50%, 0.50% Floor, 09/29/2028			1,476,793				1,441,727
Cornerstone OnDemand, Inc., First Lien Initial Term Loan, 3M US SOFR + 3.75%, 0.50% Floor, 10/16/2028			5,482,444				5,122,686
DTI Holdco, Inc. TL, First Lien Term Loan, 3M US SOFR + 4.75%, 04/26/2029			2,356,555				2,199,691
Fiserv Investment Solutions, Inc., First Lien Initial Term Loan, 3M US L + 4.00%, 02/18/2027			4,226,373				4,120,713
Help/Systems Holdings, Inc., First Lien Seventh Amendment Refinancing Term Loan, 3M US SOFR + 4.00%, 0.75% Floor, 11/19/2026			6,162,438				5,638,631
Hyland Software, Inc., Second Lien 2021 Refinancing Term Loan, 1M US L + 6.25%, 0.75% Floor, 07/07/2025			4,574,717				4,420,320
Idera, Inc., First Lien B-1 Term Loan, 1M US SOFR + 3.75%, 0.75% Floor, 03/02/2028			2,878,999				2,810,018
Imperva, Inc., First Lien Term Loan, 3M US L + 4.00%, 1.00% Floor, 01/12/2026			4,293,379				3,898,925
Ivanti Software, Inc., First Lien First Amendment Term Loan, 1M US L + 4.00%, 0.75% Floor, 12/01/2027			793,182				666,150
Ivanti Software, Inc., Second Lien Term Loan, 3M US L + 7.25%, 12/01/2028			1,571,642				1,043,185
LI Group Holdings, Inc., First Lien 2021 Term Loan, 1M US L + 3.75%, 0.75% Floor, 03/11/2028			2,265,120				2,266,536
LTI Holdings, Inc., First Lien Initial Term Loan, 3M US L + 3.50%, 09/06/2025			3,883,273				3,739,048
LTI Holdings, Inc., Second Lien Initial Term Loan, 3M US L + 6.75%, 09/06/2026			1,276,596				1,094,151
Magenta Buyer LLC, First Lien Initial Term Loan, 3M US L + 4.75%, 0.75% Floor, 07/27/2028			5,141,338				3,888,137
Mitnick Corporate Purchaser Inc., First Lien Term Loan, 3M US SOFR + 4.75%, 05/02/2029			1,260,049				1,223,823
Park Place Technologies LLC, First Lien Closing Date Term Loan, 1M US SOFR + 5.00%, 1.00% Floor, 11/10/2027			2,541,182				2,477,652
Perforce Software, Inc., First Lien New Term Loan, 1M US L + 3.75%, 07/01/2026			855,215				811,920
Proofpoint, Inc., TL, First Lien Term Loan, 1M US SOFR + 3.25%, 08/31/2028			1,790,909				1,755,834
Quartz Acquireco, LLC, TL, First Lien Term Loan, 1M US SOFR + 3.50%, 04/14/2030(b)			1,272,065				1,273,655
Quest Borrower Ltd., First Lien Term Loan, 3M US SOFR + 4.25%, 02/01/2029			4,095,878				3,199,905
Skopima Merger Sub Inc., First Lien Initial Term Loan, 1M US L + 4.00%, 05/12/2028			3,516,507				3,426,713
SS&C Technologies, Inc., First Lien Term Loan:
1M US L + 2.25%, 0.50% Floor, 03/22/2029			636,555				635,495
1M US L + 2.25%, 0.50% Floor, 03/22/2029			959,277				957,680

 

See Notes to Financial Statements.

Semi-Annual Report | June 30, 2023

55

Blackstone Strategic Credit 2027 Term Fund

Portfolio of Investments

June 30, 2023 (Unaudited)

 

		Principal Amount				Value
Software (continued)
Vision Solutions, Inc., First Lien Term Loan, 3M US L + 4.00%, 0.75% Floor, 04/24/2028		$	6,659,211			$	6,343,596
							75,998,618
Specialty Retail - 1.14%
EG America LLC, First Lien Term Loan:
1M US SOFR + 4.00%, 02/28/2028(b)			263,889				262,734
1M US SOFR + 4.00%, 0.50% Floor, 02/28/2028(b)			395,833				379,010
1M US SOFR + 4.00%, 02/28/2028(b)			1,125,829				1,118,793
1M US SOFR + 4.00%, 0.50% Floor, 02/28/2028(b)			1,688,744				1,619,083
1M US SOFR + 4.25%, 02/28/2028(b)			275,910				274,186
1M US SOFR + 4.25%, 0.50% Floor, 02/28/2028(b)			413,865				396,797
1M US SOFR + 5.50%, 0.50% Floor, 02/29/2028(b)			1,960,611				1,887,088
EG Group, Ltd., First Lien Additional Facility Term Loan, 1M US SOFR + 0.00%, 02/07/2025			374,768				369,772
							6,307,463
Technology Hardware, Storage & Peripherals - 0.68%
Project Castle, Inc., First Lien Term Loan, 3M US SOFR + 5.50%, 06/01/2029			4,442,675				3,776,274
Textiles, Apparel & Luxury Goods - 0.46%
S&S Holdings LLC, First Lien Initial Term Loan, 3M US L + 5.00%, 0.50% Floor, 03/11/2028			2,910,334				2,553,818
Trading Companies & Distributors - 2.05%
Foundation Building Materials, Inc., First Lien Initial Term Loan, 3M US L + 3.25%, 0.50% Floor, 01/31/2028			2,167,214				2,110,943
Park River Holdings, Inc., First Lien Initial Term Loan, 6M US L + 3.25%, 0.75% Floor, 12/28/2027			5,185,093				4,985,648
SRS Distribution, Inc., First Lien Term Loan, 1M US SOFR + 3.50%, 06/02/2028			2,244,318				2,195,235
Windsor Holdings III, LLC, TL, First Lien Term Loan, 6M US SOFR + 4.50%, 06/21/2030			2,102,057				2,067,636
							11,359,462
Wireless Telecommunication Services - 0.86%
CCI Buyer, Inc., First Lien Initial Term Loan, 3M US SOFR + 4.00%, 0.75% Floor, 12/17/2027			4,832,403				4,750,856
TOTAL FLOATING RATE LOAN INTERESTS
(Cost $743,713,944)							717,960,331
CORPORATE BONDS - 26.78%
Aerospace & Defense - 1.55%
Bombardier, Inc., 7.500%, 02/01/2029(f)			2,835,000				2,805,445
Spirit AeroSystems, Inc., 4.600%, 06/15/2028			200,000				167,986
TransDigm, Inc.:
4.625%, 01/15/2029			1,650,000				1,469,701
4.880%, 05/01/2029			1,350,000				1,207,532
Triumph Group, Inc., 7.750%, 08/15/2025			3,011,000				2,930,576
							8,581,240
Air Freight & Logistics - 0.09%
Allegiant Travel Co., 7.250%, 08/15/2027(f)			500,000				498,660
Automobile Components - 0.19%
Patrick Industries, Inc., 4.750%, 05/01/2029(f)			1,230,000				1,057,880

 

See Notes to Financial Statements.

56	www.blackstone-credit.com

Blackstone Strategic Credit 2027 Term Fund

Portfolio of Investments

June 30, 2023 (Unaudited)

 

		Principal Amount				Value
Automobiles - 0.49%
Ford Motor Credit Co. LLC:
2.700%, 08/10/2026		$	400,000			$	357,496
6.800%, 05/12/2028			1,915,000				1,918,834
7.350%, 03/06/2030			400,000				408,947
							2,685,277
Banks - 0.27%
Intesa Sanpaolo SpA, 5.710%, 01/15/2026(f)			1,538,000				1,465,183
Broadline Retail - 0.17%
Nordstrom, Inc., 5.000%, 01/15/2044			249,000				173,303
Rakuten Group, Inc., 10.250%, 11/30/2024(f)			765,000				759,254
							932,557
Building Products - 0.49%
Griffon Corp., 5.750%, 03/01/2028			1,050,000				983,127
JELD-WEN, Inc., 4.880%, 12/15/2027(f)			1,922,000				1,704,660
							2,687,787
Chemicals - 0.43%
Chemours Co.:
5.750%, 11/15/2028(f)			400,000				367,938
4.630%, 11/15/2029(f)			150,000				126,902
FMG Resources August 2006 Pty, Ltd.:
5.875%, 04/15/2030(f)			512,000				488,133
4.375%, 04/01/2031(f)			580,000				496,032
6.125%, 04/15/2032(f)			617,000				588,893
Valvoline, Inc., 3.630%, 06/15/2031(f)			400,000				325,568
							2,393,466
Commercial Services & Supplies - 0.07%
Deluxe Corp., 8.000%, 06/01/2029(f)			270,000				211,675
GFL Environmental, Inc., 4.000%, 08/01/2028(f)			200,000				179,071
							390,746
Communications Equipment - 0.32%
CommScope, Inc., 8.250%, 03/01/2027(f)			550,000				440,758
Viasat, Inc., 6.500%, 07/15/2028(f)			1,571,000				1,332,836
							1,773,594
Construction & Engineering - 0.29%
Brundage-Bone Concrete Pumping Holdings, Inc., 6.000%, 02/01/2026(f)			639,000				605,725
Great Lakes Dredge & Dock Corp., 5.250%, 06/01/2029(f)			369,000				308,532
Tutor Perini Corp., 6.875%, 05/01/2025(f)			850,000				706,014
							1,620,271
Consumer Finance - 2.10%
Enova International, Inc., 8.500%, 09/15/2025(f)			460,000				448,459
FirstCash, Inc.:
4.630%, 09/01/2028(f)			1,715,000				1,533,635
5.625%, 01/01/2030(f)			190,000				171,898
Goeasy, Ltd., 4.375%, 05/01/2026(f)			1,600,000				1,461,029

 

See Notes to Financial Statements.

Semi-Annual Report | June 30, 2023

57

Blackstone Strategic Credit 2027 Term Fund

Portfolio of Investments

June 30, 2023 (Unaudited)

 

		Principal Amount				Value
Consumer Finance (continued)
Navient Corp.:
5.000%, 03/15/2027		$	800,000			$	716,418
4.880%, 03/15/2028			1,150,000				986,010
5.500%, 03/15/2029			150,000				128,046
9.375%, 07/25/2030			529,000				526,646
5.625%, 08/01/2033			643,000				484,208
OneMain Finance Corp.:
3.500%, 01/15/2027			1,007,000				864,983
6.625%, 01/15/2028			1,300,000				1,227,551
3.880%, 09/15/2028			550,000				450,120
5.375%, 11/15/2029			400,000				340,443
SLM Corp.:
4.200%, 10/29/2025			1,450,000				1,348,634
3.125%, 11/02/2026			250,000				216,504
Synchrony Financial, 7.250%, 02/02/2033			305,000				274,964
World Acceptance Corp., 7.000%, 11/01/2026(f)			490,000				429,206
							11,608,754
Consumer Staples Distribution & Retail - 0.13%
Albertsons Cos. Inc / Safeway, Inc. / New Albertsons LP / Albertsons LLC, 6.500%, 02/15/2028(f)			700,000				701,956
Containers & Packaging - 0.06%
Cascades, Inc./Cascades USA, Inc., 5.380%, 01/15/2028(f)			360,000				336,859
Diversified Consumer Services - 0.16%
Adtalem Global Education, Inc., 5.500%, 03/01/2028(f)			670,000				608,795
WW International, Inc., 4.500%, 04/15/2029(f)			480,000				284,176
							892,971
Diversified REITs - 0.50%
Service Properties Trust:
4.750%, 10/01/2026			1,800,000				1,564,769
4.950%, 02/15/2027			705,000				603,652
3.950%, 01/15/2028			789,000				618,955
							2,787,376
Diversified Telecommunication Services - 0.61%
Cogent Communications Group, Inc., 7.000%, 06/15/2027(f)			1,500,000				1,452,600
Hughes Satellite Systems Corp., 6.625%, 08/01/2026			2,040,000				1,909,246
							3,361,846
Electric Utilities - 0.23%
PG&E Corp., 5.000%, 07/01/2028			1,400,000				1,285,928
Energy Equipment & Services - 1.34%
Archrock Lp/fin Aplp 6 7/8 04/01/27, 6.875%, 04/01/2027(f)			38,000				36,527
Archrock Partners LP / Archrock Partners Finance Corp., 6.250%, 04/01/2028(f)			1,900,000				1,786,570
Enerflex, Ltd., 9.000%, 10/15/2027(f)			1,020,000				993,414
NuStar Logistics LP:
5.625%, 04/28/2027			750,000				721,350
6.375%, 10/01/2030			530,000				506,252
Oceaneering International, Inc., 6.000%, 02/01/2028			1,200,000				1,138,134

 

See Notes to Financial Statements.

58	www.blackstone-credit.com

Blackstone Strategic Credit 2027 Term Fund

Portfolio of Investments

June 30, 2023 (Unaudited)

 

		Principal Amount				Value
Energy Equipment & Services (continued)
Transocean, Inc.:
8.000%, 02/01/2027(f)		$	1,520,000			$	1,379,605
7.500%, 04/15/2031			1,060,000				836,658
							7,398,510
Entertainment - 0.07%
Lions Gate Capital Holdings LLC, 5.500%, 04/15/2029(f)			525,000				380,809
Financial Services - 1.42%
Burford Capital Global Finance LLC, 6.875%, 04/15/2030(f)			450,000				410,654
MGIC Investment Corp., 5.250%, 08/15/2028			1,110,000				1,048,018
Nationstar Mortgage Holdings, Inc.:
6.000%, 01/15/2027(f)			2,148,000				2,000,819
5.500%, 08/15/2028(f)			900,000				789,543
5.750%, 11/15/2031(f)			170,000				139,825
PennyMac Financial Services, Inc.:
5.375%, 10/15/2025(f)			1,980,000				1,873,189
5.750%, 09/15/2031(f)			1,240,000				1,012,563
PHH Mortgage Corp., 7.875%, 03/15/2026(f)			660,000				590,106
							7,864,717
Food Products - 0.11%
Post Holdings, Inc.:
4.625%, 04/15/2030(f)			500,000				438,717
4.500%, 09/15/2031(f)			200,000				170,988
							609,705
Gas Utilities - 0.10%
Suburban Propane Partners LP/Suburban Energy Finance Corp., 5.000%, 06/01/2031(f)			660,000				553,518
Ground Transportation - 0.07%
XPO, Inc., 7.125%, 06/01/2031(f)			400,000				403,530
Health Care Providers & Services - 0.59%
CHS/Community Health Systems, Inc.:
6.875%, 04/15/2029(f)			910,000				569,314
6.125%, 04/01/2030(f)			250,000				149,214
DaVita, Inc.:
4.625%, 06/01/2030(f)			1,710,000				1,469,895
3.750%, 02/15/2031(f)			240,000				192,194
Encompass Health Corp.:
4.750%, 02/01/2030			240,000				218,810
4.625%, 04/01/2031			350,000				310,716
Tenet Healthcare Corp., 6.875%, 11/15/2031			350,000				349,622
							3,259,765
Health Care REITs - 0.05%
MPT Operating Partnership LP / MPT Finance Corp., 4.625%, 08/01/2029			400,000				302,756
Health Care Technology - 0.40%
MPH Acquisition Holdings LLC, 5.750%, 11/01/2028(f)			2,940,000				2,216,407

 

See Notes to Financial Statements.

Semi-Annual Report | June 30, 2023

59

Blackstone Strategic Credit 2027 Term Fund

Portfolio of Investments

June 30, 2023 (Unaudited)

		Principal Amount				Value
Hotels, Restaurants & Leisure - 2.38%
1011778 BC ULC / New Red Finance, Inc.:
4.380%, 01/15/2028(f)		$	1,200,000			$	1,109,453
4.000%, 10/15/2030(f)			255,000				218,543
Bloomin' Brands, Inc. / OSI Restaurant Partners LLC, 5.125%, 04/15/2029(f)			250,000				223,683
Carnival Corp.:
7.625%, 03/01/2026(f)			2,545,000				2,494,924
5.750%, 03/01/2027(f)			400,000				368,606
6.000%, 05/01/2029(f)			50,000				44,689
Carrols Restaurant Group, Inc., 5.875%, 07/01/2029(f)			500,000				412,050
Churchill Downs, Inc., 4.750%, 01/15/2028(f)			1,090,000				1,012,153
NCL Corp., Ltd.:
5.875%, 03/15/2026(f)			2,540,000				2,378,618
7.750%, 02/15/2029(f)			620,000				589,440
Royal Caribbean Cruises, Ltd.:
4.250%, 07/01/2026(f)			610,000				560,499
5.500%, 08/31/2026(f)			550,000				521,975
5.375%, 07/15/2027(f)			100,000				93,610
7.500%, 10/15/2027			250,000				251,382
3.700%, 03/15/2028			1,700,000				1,479,432
Station Casinos LLC, 4.500%, 02/15/2028(f)			600,000				539,271
Wynn Resorts Finance LLC / Wynn Resorts Capital Corp., 5.130%, 10/01/2029(f)			970,000				870,394
							13,168,722
Household Durables - 1.24%
Beazer Homes USA, Inc.:
5.875%, 10/15/2027			170,000				158,784
7.250%, 10/15/2029			1,040,000				1,012,306
Century Communities, Inc., 3.880%, 08/15/2029(f)			600,000				520,672
Installed Building Products, Inc., 5.750%, 02/01/2028(f)			500,000				471,820
LGI Homes, Inc., 4.000%, 07/15/2029(f)			490,000				408,392
M/I Homes, Inc., 3.950%, 02/15/2030			611,000				521,708
Taylor Morrison Communities, Inc., 5.750%, 01/15/2028(f)			1,980,000				1,916,344
Tempur Sealy International, Inc.:
4.000%, 04/15/2029(f)			1,540,000				1,334,891
3.880%, 10/15/2031(f)			230,000				187,686
TopBuild Corp., 4.125%, 02/15/2032(f)			400,000				341,205
							6,873,808
Household Products - 0.19%
Energizer Holdings, Inc.:
6.500%, 12/31/2027(f)			150,000				144,398
4.750%, 06/15/2028(f)			950,000				848,350
4.375%, 03/31/2029(f)			90,000				77,670
							1,070,418
Interactive Media & Services - 0.55%
ANGI Group LLC, 3.875%, 08/15/2028(f)			850,000				695,046
Cinemark USA, Inc., 5.250%, 07/15/2028(f)			1,850,000				1,629,232
ZipRecruiter, Inc., 5.000%, 01/15/2030(f)			820,000				699,042
							3,023,320
IT Services - 0.09%
Unisys Corp., 6.875%, 11/01/2027(f)			660,000				476,091

 

See Notes to Financial Statements.

60	www.blackstone-credit.com

Blackstone Strategic Credit 2027 Term Fund

Portfolio of Investments

June 30, 2023 (Unaudited)

 

		Principal Amount				Value
Leisure Products - 0.10%
Vista Outdoor, Inc., 4.500%, 03/15/2029(f)		$	700,000			$	567,718
Machinery - 0.35%
Allison Transmission, Inc., 3.750%, 01/30/2031(f)			950,000				803,388
Manitowoc Co., Inc., 9.000%, 04/01/2026(f)			558,000				555,785
Wabash National Corp., 4.500%, 10/15/2028(f)			680,000				590,490
							1,949,663
Marine Transportation - 0.08%
Danaos Corp., 8.500%, 03/01/2028(f)			450,000				451,845
Media - 1.23%
CCO Holdings LLC / CCO Holdings Capital Corp.:
5.125%, 05/01/2027(f)			600,000				559,362
5.375%, 06/01/2029(f)			650,000				588,266
4.750%, 03/01/2030(f)			250,000				213,996
7.380%, 03/01/2031(f)			550,000				536,281
4.500%, 05/01/2032			397,000				317,374
Clear Channel Outdoor Holdings, Inc.:
7.750%, 04/15/2028(f)			840,000				660,433
7.500%, 06/01/2029(f)			240,000				177,872
DISH DBS Corp.:
5.875%, 11/15/2024			1,000,000				875,881
7.750%, 07/01/2026			250,000				153,594
Gray Television, Inc., 7.000%, 05/15/2027(f)			200,000				170,840
News Corp., 3.875%, 05/15/2029(f)			100,000				87,878
Nexstar Media, Inc.:
5.625%, 07/15/2027(f)			300,000				279,931
4.750%, 11/01/2028(f)			800,000				694,904
Scripps Escrow, Inc., 5.875%, 07/15/2027(f)			251,000				203,505
Townsquare Media, Inc., 6.875%, 02/01/2026(f)			906,000				867,229
Urban One, Inc., 7.375%, 02/01/2028(f)			470,000				409,939
							6,797,285
Metals & Mining - 0.55%
Eldorado Gold Corp., 6.250%, 09/01/2029(f)			930,000				834,093
IAMGOLD Corp., 5.750%, 10/15/2028(f)			730,000				547,153
Mineral Resources, Ltd., 8.000%, 11/01/2027(f)			925,000				924,660
New Gold, Inc., 7.500%, 07/15/2027(f)			450,000				420,777
Taseko Mines, Ltd., 7.000%, 02/15/2026(f)			350,000				319,358
							3,046,041
Mortgage Real Estate Investment - 0.80%
Apollo Commercial Real Estate Finance, Inc., 4.625%, 06/15/2029(f)			800,000				624,701
Rithm Capital Corp., 6.250%, 10/15/2025(f)			940,000				882,350
Starwood Property Trust, Inc.:
3.630%, 07/15/2026(f)			2,350,000				2,025,208
4.380%, 01/15/2027(f)			1,020,000				879,428
							4,411,687
Oil, Gas & Consumable Fuels - 3.56%
AmeriGas Partners LP / AmeriGas Finance Corp.:
5.875%, 08/20/2026			525,000				494,288
5.750%, 05/20/2027			469,000				431,678
Antero Midstream Partners LP / Antero Midstream Finance Corp., 5.750%, 03/01/2027(f)			2,600,000				2,509,875

 

See Notes to Financial Statements.

Semi-Annual Report | June 30, 2023

61

Blackstone Strategic Credit 2027 Term Fund

Portfolio of Investments

June 30, 2023 (Unaudited)

 

		Principal Amount				Value
Oil, Gas & Consumable Fuels (continued)
Calumet Specialty Products Partners LP / Calumet Finance Corp., 9.750%, 07/15/2028(f)		$	302,000			$	297,364
CNX Resources Corp., 6.000%, 01/15/2029(f)			1,148,000				1,065,214
Crestwood Midstream Partners LP / Crestwood Midstream Finance Corp.:
5.625%, 05/01/2027(f)			1,000,000				949,000
6.000%, 02/01/2029(f)			351,000				328,103
Delek Logistics Partners LP / Delek Logistics Finance Corp., 7.125%, 06/01/2028(f)			680,000				630,695
Energean PLC, 6.500%, 04/30/2027(f)			300,000				274,178
EQM Midstream Partners LP, 6.500%, 07/15/2048			550,000				498,239
Global Partners LP / GLP Finance Corp., 6.875%, 01/15/2029			780,000				725,170
Hess Midstream Operations LP:
5.130%, 06/15/2028(f)			2,639,000				2,472,310
4.250%, 02/15/2030(f)			500,000				436,745
MEG Energy Corp., 5.875%, 02/01/2029(f)			1,100,000				1,035,557
Northern Oil and Gas, Inc.:
8.125%, 03/01/2028(f)			800,000				784,804
8.750%, 06/15/2031(f)			296,000				291,190
NuStar Logistics LP, 6.000%, 06/01/2026			58,000				56,550
Parkland Corp.:
5.875%, 07/15/2027(f)			900,000				869,196
4.500%, 10/01/2029(f)			1,600,000				1,389,592
PBF Holding Co. LLC / PBF Finance Corp., 6.000%, 02/15/2028			600,000				561,384
Sunoco LP / Sunoco Finance Corp., 4.500%, 05/15/2029			2,420,000				2,149,736
Superior Plus LP / Superior General Partner, Inc., 4.500%, 03/15/2029(f)			750,000				658,170
Vital Energy, Inc., 9.500%, 01/15/2025			800,000				794,864
							19,703,902
Paper & Forest Products - 0.09%
Louisiana-Pacific Corp., 3.625%, 03/15/2029(f)			550,000				482,034
Passenger Airlines - 0.10%
American Airlines, Inc., 7.250%, 02/15/2028(f)			550,000				547,293
Personal Care Products - 0.05%
Edgewell Personal Care Co., 4.125%, 04/01/2029(f)			290,000				253,351
Professional Services - 0.20%
KBR, Inc., 4.750%, 09/30/2028(f)			430,000				391,756
TriNet Group, Inc., 3.500%, 03/01/2029(f)			850,000				739,896
							1,131,652
Real Estate Management & Development - 0.82%
Forestar Group, Inc., 3.850%, 05/15/2026(f)			1,220,000				1,122,406
Howard Hughes Corp.:
5.375%, 08/01/2028(f)			270,000				240,670
4.125%, 02/01/2029(f)			1,300,000				1,077,206
4.380%, 02/01/2031(f)			739,000				590,476
Kennedy-Wilson, Inc.:
4.750%, 03/01/2029			750,000				593,717
4.750%, 02/01/2030			200,000				151,022
Realogy Group LLC / Realogy Co.-Issuer Corp., 5.750%, 01/15/2029(f)			1,000,000				749,347
							4,524,844
Software - 0.76%
Fair Isaac Corp., 4.000%, 06/15/2028(f)			1,200,000				1,101,967
MicroStrategy, Inc., 6.125%, 06/15/2028(f)			810,000				726,975

 

See Notes to Financial Statements.

62	www.blackstone-credit.com

Blackstone Strategic Credit 2027 Term Fund

Portfolio of Investments

June 30, 2023 (Unaudited)

 

		Principal Amount				Value
Software (continued)
Open Text Corp., 3.880%, 02/15/2028(f)		$	2,300,000			$	2,027,818
Pitney Bowes, Inc.:
6.875%, 03/15/2027(f)			290,000				215,031
7.250%, 03/15/2029(f)			190,000				125,415
							4,197,206
Specialized REITs - 0.04%
Uniti Group LP / Uniti Group Finance, Inc. / CSL Capital LLC, 6.500%, 02/15/2029(f)			300,000				212,608
Specialty Retail - 0.91%
Asbury Automotive Group, Inc.:
4.625%, 11/15/2029(f)			250,000				222,184
4.750%, 03/01/2030			450,000				400,369
5.000%, 02/15/2032(f)			895,000				780,216
Bath & Body Works, Inc., 6.750%, 07/01/2036			570,000				513,645
Carvana Co., 5.500%, 04/15/2027(f)			550,000				368,661
Group 1 Automotive, Inc., 4.000%, 08/15/2028(f)			340,000				299,715
Iron Mountain, Inc.:
7.000%, 02/15/2029(f)			455,000				456,257
4.875%, 09/15/2029(f)			700,000				627,226
5.250%, 07/15/2030(f)			1,000,000				901,990
4.500%, 02/15/2031(f)			10,000				8,601
5.625%, 07/15/2032(f)			500,000				448,027
							5,026,891
Technology Hardware, Storage & Peripherals - 0.39%
Seagate HDD Cayman, 8.250%, 12/15/2029(f)			905,000				946,060
Xerox Holdings Corp., 5.500%, 08/15/2028(f)			1,435,000				1,222,230
							2,168,290
TOTAL CORPORATE BONDS
(Cost $148,863,872)							148,136,737
		Shares				Value
COMMON STOCK - 0.63%
Energy Equipment & Services - 0.04%
Brock Holdings III Inc.(b)			164,832				–
Utex Industries Holdings, LLC(g)			3,182				207,626
							207,626
Health Care Equipment & Supplies - 0.33%
Carestream Health Holdings Inc(b)(g)			242,545				1,819,088
Oil, Gas & Consumable Fuels - 0.26%
Saturn Oil & Gas, Inc.(g)			217,155				360,627
Total Safety Holdings, LLC(b)(g)			2,951				1,106,625
							1,467,252
TOTAL COMMON STOCK
(Cost $11,484,244)							3,493,966

 

See Notes to Financial Statements.

Semi-Annual Report | June 30, 2023

63

Blackstone Strategic Credit 2027 Term Fund

Portfolio of Investments

June 30, 2023 (Unaudited)

 

		Shares				Value
WARRANTS - 0.00%(h)
Energy Equipment & Services - 0.00%(h)
Utex Industries Holdings, LLC expires 12/31/2049 at $114.76(b)			7,955			$	3,182
TOTAL WARRANTS
(Cost $0)							3,182
SHORT TERM INVESTMENTS - 2.89%
Fidelity Treasury Portfolio
(4.33% 7-Day Yield)			15,976,146				15,976,146
TOTAL SHORT TERM INVESTMENTS
(Cost $15,976,146)							15,976,146
Total Investments- 160.08%
(Cost $920,038,206)							885,570,362
Liabilities in Excess of Other Assets - (4.73)%							(26,176,357	)
Mandatory Redeemable Preferred Shares - (8.19)%
(liquidation preference plus distributions payable on term preferred shares)							(45,288,800	)
Leverage Facility - (47.16)%							(260,900,000	)
Net Assets - 100.00%						$	553,205,205

 

Amounts above are shown as a percentage of net assets as of June 30, 2023.

 

Investment Abbreviations: 

LIBOR - London Interbank Offered Rate 

SOFR - Secured Overnight Financing Rate

 

Reference Rates: 

1M US L - 1 Month LIBOR as of June 30, 2023 was 5.22%

3M US L - 3 Month LIBOR as of June 30, 2023 was 5.55%

6M US L - 6 Month LIBOR as of June 30, 2023 was 5.76%

1M US SOFR- 1 Month SOFR as of June 30, 2023 was 5.06%

3M US SOFR - 3 Month SOFR as of June 30, 2023 was 5.00%

6M US SOFR - 6 Month SOFR as of June 30, 2023 was 4.78%

PRIME - US Prime Rate as of June 30, 2023 was 8.25%

 

(a)

Floating or variable rate security. The reference rate is described above. The rate in effect as of June 30, 2023 is based on the reference rate plus the displayed spread as of the security's last reset date. Where applicable, the reference rate is subject to a floor rate.

(b)

Level 3 assets valued using significant unobservable inputs as a result of unavailable quoted prices from an active market or the unavailability of other significant observable inputs.

(c)

Security is in default as of period end.

(d)

A portion of this position was not funded as of June 30, 2023. The Portfolio of Investments records only the funded portion of each position. As of June 30, 2023, the Fund has unfunded delayed draw loans in the amount of $583,098. Fair value of these unfunded delayed draws was $563,681.

(e)

Represents a payment-in-kind (“PIK”) security which may pay interest/dividend in additional par/shares.

(f)

Security exempt from registration under Rule 144A of the Securities Act of 1933. Total market value of Rule 144A securities amounts to $107,398,719, which represented approximately 19.41% of net assets as of June 30, 2023. Such securities may normally be sold to qualified institutional buyers in transactions exempt from registration.

(g)

Non-income producing security.

(h)

Amount represents less than 0.005% of net assets.

 

See Notes to Financial Statements.

64	www.blackstone-credit.com

Blackstone Credit Funds

Statements of Assets and Liabilities

June 30, 2023 (Unaudited)

 

		Senior Floating Rate 2027 Term Fund				Long-Short Credit Income Fund				Strategic Credit 2027 Term Fund
ASSETS:
Investments, at fair value (Cost $288,952,795, $281,692,883 and $920,038,206, respectively)		$	278,383,669			$	271,951,769			$	885,570,362
Cash			114,563				119,676				527,602
Receivable for investment securities sold			3,571,595				3,256,897				9,097,010
Interest receivable			1,537,703				1,966,799				6,315,746
Net unrealized appreciation on unfunded loan commitments			1,872				1,493				5,140
Prepaid offering cost			356,023				446,650				–
Prepaid expenses and other assets			38,370				30,070				139,743
Total Assets			284,003,795				277,773,354				901,655,603
LIABILITIES:
Payable for investment securities purchased			14,773,246				12,626,158				38,450,578
Leverage facility			81,000,000				79,800,000				260,900,000
Interest due on leverage facility			513,851				313,614				1,724,503
Accrued investment advisory fee payable			338,224				160,265				701,993
Accrued fund accounting and administration fees payable			99,340				89,239				245,727
Accrued trustees' fees payable			36,015				28,200				93,803
Other payables and accrued expenses			530,565				601,289				1,050,746
Mandatory redeemable preferred shares (net of deferred financing costs of: –, $(2,556) and  $(5,752), respectively)(a)			–				19,997,444				44,994,248
Distributions payable on mandatory redeemable preferred shares			–				128,356				288,800
Total Liabilities			97,291,241				113,744,565				348,450,398
Net Assets Attributable to Common Shareholders		$	186,712,554			$	164,028,789			$	553,205,205
COMPOSITION OF NET ASSETS ATTRIBUTABLE TO COMMON SHARES:
Par value ($0.001 per share, applicable to 13,008,542, 12,708,275 and 44,664,382 shares  issued and outstanding)		$	13,009			$	12,708			$	44,664
Paid-in capital in excess of par value			257,240,387				236,843,518				839,706,479
Total distributable earnings			(70,540,842	)			(72,827,437	)			(286,545,938	)
Net Assets Attributable to Common Shareholders		$	186,712,554			$	164,028,789			$	553,205,205
Net Asset Value per Common Share		$	14.35			$	12.91			$	12.39

 

(a)

$1,000 liquidation value per share. -, 20,000, and 45,000 shares issued and outstanding, respectively.

 

See Notes to Financial Statements.

Semi-Annual Report | June 30, 2023

65

Blackstone Credit Funds

Statements of Operations

For the Six Months Ended June 30, 2023 (Unaudited)

 

		Senior Floating Rate 2027 Term Fund				Long-Short Credit Income Fund				Strategic Credit 2027 Term Fund
INVESTMENT INCOME:
Interest		$	12,796,567			$	12,460,646			$	39,702,232
Total Investment Income			12,796,567				12,460,646				39,702,232
EXPENSES:
Investment advisory fee			1,164,345				970,321				4,225,819
Fund accounting and administration fees			158,517				148,116				473,455
Insurance expense			41,829				34,598				142,384
Legal and audit fees			160,404				300,521				356,697
Custodian fees			32,240				22,750				83,428
Trustees' fees and expenses			58,090				52,790				177,119
Printing expense			46,461				16,482				46,702
Transfer agent fees			13,421				16,961				17,076
Interest on leverage facility			2,273,401				2,383,531				7,849,693
Amortization of deferred financing costs			–				17,796				40,041
Other expenses			59,801				100,091				150,609
Distributions to mandatory redeemable preferred shares			–				364,542				820,219
Total Expenses			4,008,509				4,428,499				14,383,242
Net Investment Income			8,788,058				8,032,147				25,318,990
NET REALIZED AND UNREALIZED GAIN/(LOSS) ON INVESTMENTS:
Net realized gain/(loss) on:
Investment securities and unfunded loan commitments			(5,235,694	)			(6,111,164	)			(23,065,196	)
Foreign currency transactions			–				–				(16,999	)
Net realized loss:			(5,235,694	)			(6,111,164	)			(23,082,195	)
Net change in unrealized appreciation/(depreciation) on:
Investment securities and unfunded loan commitments			9,254,815				10,087,644				35,684,558
Translation of assets and liabilities in foreign currency transactions			–				–				6,955
Net change in unrealized appreciation/(depreciation) on investments			9,254,815				10,087,644				35,691,513
Net Realized and Unrealized Gain on Investments			4,019,121				3,976,480				12,609,318
Net Increase in Net Assets Attributable to Common Shares from Operations		$	12,807,179			$	12,008,627			$	37,928,308

 

See Notes to Financial Statements. 

66	www.blackstone-credit.com

Blackstone Credit Funds

Statements of Changes in Net Assets

 

		Senior Floating Rate 2027 Term Fund								Long-Short Credit Income Fund								Strategic Credit 2027 Term Fund
		For the Six Months Ended June 30, 2023 (Unaudited)				For the Year Ended December 31, 2022				For the Six Months Ended June 30, 2023 (Unaudited)				For the Year Ended December 31, 2022				For the Six Months Ended June 30, 2023 (Unaudited)				For the Year Ended December 31, 2022
FROM OPERATIONS:
Net investment income(a)		$	8,788,058			$	14,032,038			$	8,032,147			$	13,459,525			$	25,318,990			$	41,667,545
Net realized loss			(5,235,694	)			(13,597,726	)			(6,111,164	)			(15,868,811	)			(23,082,195	)			(49,661,346	)
Net change in unrealized  appreciation/(depreciation) on Investment  securities and unfunded loan commitments			9,254,815				(19,572,848	)			10,087,644				(20,193,964	)			35,691,513				(63,447,939	)
Net Increase/(Decrease) in Net Assets Attributable to Common Shares from Operations			12,807,179				(19,138,536	)			12,008,627				(22,603,250	)			37,928,308				(71,441,740	)
DISTRIBUTIONS TO COMMON SHAREHOLDERS:
From distributable earnings			(8,234,407	)			(11,464,793	)			(7,510,590	)			(11,234,115	)			(23,582,793	)			(34,748,889	)
Net Decrease in Net Assets from Distributions  to Common Shareholders			(8,234,407	)			(11,464,793	)			(7,510,590	)			(11,234,115	)			(23,582,793	)			(34,748,889	)
Proceeds from sale of common shares (net of offering costs)			–				32,583				–				–				–				–
Cost of shares repurchased			–				(6,727,909	)			–				–				–				–
Net asset value of common shares issued to shareholders from reinvestment of dividends			–				51,564				–				–				–				–
Net Decrease from Capital Share Transactions			–				(6,643,762	)			–				–				–				–
Net Increase/(Decrease) in Net Assets  Attributable to Common Shares			4,572,772				(37,247,091	)			4,498,037				(33,837,365	)			14,345,515				(106,190,629	)
NET ASSETS ATTRIBUTABLE TO COMMON SHAREHOLDERS:
Beginning of period			182,139,782				219,386,873				159,530,752				193,368,117				538,859,690				645,050,319
End of period		$	186,712,554			$	182,139,782			$	164,028,789			$	159,530,752			$	553,205,205			$	538,859,690

 

(a)

Includes impact of distributions to preferred shareholders from net investment income. Distributions on the Fund's mandatory redeemable preferred stock ("MRPS") are treated as an operating expense under GAAP and are included in the calculation of net investment income. See Note 11 - Leverage. The Long-Short Credit Income Fund and the Strategic Credit 2027 Term Fund recorded distributions of $364,542 and $820,219, respectively, to holders of MRPS for the six months ended June 30, 2023. For the fiscal year ended December 31, 2022, the Long-Short Credit Income Fund and the Strategic Credit 2027 Term Fund recorded distributions of $722,000 and $1,624,500, respectively, to holders of MRPS. See Note 12 for details on tax characterization of distributions.

 

See Notes to Financial Statements.

Semi-Annual Report | June 30, 2023

67

Blackstone Credit Funds

Statements of Cash Flows

For the Six Months Ended June 30, 2023 (Unaudited)

 

		Senior Floating Rate 2027 Term Fund				Long-Short Credit Income Fund				Strategic Credit 2027 Term Fund
CASH FLOWS FROM OPERATING ACTIVITIES:
Net increase in net assets from operations		$	12,807,179			$	12,008,627			$	37,928,308
Adjustments to reconcile net increase in net assets from operations to net cash provided  by/(used in) operating activities:
Purchases of investment securities			(106,520,453	)			(144,232,871	)			(487,671,927	)
Payment-in-kind interest			(7,660	)			(6,156	)			(21,069	)
Proceeds from disposition of investment securities			94,808,927				136,175,356				461,007,552
Net discounts (accreted)/premiums amortized			(535,364	)			(792,112	)			(2,609,156	)
Net realized (gain)/loss on:
Investment securities and unfunded loan commitments			5,235,694				6,111,164				23,065,196
Net change in unrealized (appreciation)/depreciation on:
Investment securities and unfunded loan commitments			(9,254,815	)			(10,087,644	)			(35,684,558	)
Net purchase of cash equivalent			(8,192,136	)			(4,951,095	)			(15,976,146	)
Amortization of deferred financing costs			–				17,796				40,041
(Increase)/Decrease in assets:
Interest receivable			265,270				433,952				410,399
Prepaid offering costs			(67,183	)			(1,573	)			–
Receivable for dividend reinvest			–				–				–
Net unrealized appreciation on unfunded loan commitments			(1,872	)			(1,493	)			282,909
Prepaid expenses and other assets			(27,969	)			(25,502	)			(52,884	)
Increase/(Decrease) in liabilities:
Distributions payable on mandatory redeemable preferred shares			–				3,542				7,969
Interest due on loan facility			(265,307	)			(228,214	)			787,377
Payable to Adviser for offering costs			–				–				–
Net unrealized depreciation on unfunded loan commitments			(37,918	)			(19,718	)			–
Accrued investment advisory fees payable			(7,847	)			(3,703	)			(33,886	)
Accrued fund accounting and administration expense			(71,690	)			(54,633	)			(124,194	)
Accrued trustees' fees payable			4,886				6,318				20,184
Other payables and accrued expenses			69,566				150,516				160,697
Net Cash Provided by/(Used in) Operating Activities			(11,798,692	)			(5,497,443	)			(18,463,188	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from leverage facility			21,000,000				12,000,000				42,000,000
Payments on leverage facility			(25,000,000	)			(15,000,000	)			(50,000,000	)
Cost of shares repurchased			–				–				–
Distributions paid - common shareholders - net of distributions reinvested			(8,234,407	)			(7,510,590	)			(23,582,793	)
Net Cash Used in Financing Activities			(12,234,407	)			(10,510,590	)			(31,582,793	)
Net Increase/Decrease in Cash			(24,033,099	)			(16,008,033	)			(50,045,981	)
Cash, beginning balance		$	24,147,662			$	16,127,709			$	50,573,583
Cash, ending balance		$	114,563			$	119,676			$	527,602
Supplemental disclosure of cash flow information:
Interest paid on leverage facility during the year		$	2,538,708			$	2,611,745			$	7,062,316

 

See Notes to Financial Statements. 

68	www.blackstone-credit.com

Blackstone Senior Floating Rate 2027 Term Fund

Financial Highlights

For a Share Outstanding Throughout the Periods Indicated

 

		For the Six Months Ended June 30, 2023 (Unaudited) *				For the Year Ended December 31, 2022				For the Year Ended December 31, 2021				For the  Year Ended December 31, 2020 (a)
PER COMMON SHARE OPERATING PERFORMANCE:
Net asset value - beginning of period		$	14.00			$	16.21			$	15.88			$	16.41
INCOME/(LOSS) FROM INVESTMENT OPERATIONS:
Net investment income(b)			0.68				1.04				1.02				1.08
Net realized and unrealized gain/(loss) on investments, foreign  currency transactions and unfunded loan commitments			0.30				(2.39	)			0.30				(0.72	)
Total Income/(Loss) from Investment Operations			0.98				(1.35	)			1.32				0.36
DISTRIBUTIONS TO COMMON SHAREHOLDERS:
From net investment income			(0.63	)			(0.86	)			(0.99	)			(1.09	)
Total Distributions to Common Shareholders			(0.63	)			(0.86	)			(0.99	)			(1.09	)
CAPITAL SHARE TRANSACTIONS:
Accretion to net asset value resulting from share repurchases			–				–				–				0.20
Total Capital Share Transactions			–				–				–				0.20
Net asset value per common share - end of period		$	14.35			$	14.00			$	16.21			$	15.88
Market price per common share - end of period		$	12.82			$	12.43			$	17.17			$	14.22
Total Investment Return - Net Asset Value(c)			7.67	%			(8.01	%)			8.57	%			4.98	%
Total Investment Return - Market Price(c)			8.34	%			(22.89	%)			28.43	%			(4.48	%)
RATIOS AND SUPPLEMENTAL DATA:
Net assets attributable to common shares, end of period (000s)		$	186,713			$	182,140			$	219,387			$	215,253
Ratio of expenses to average net assets attributable to common shares			4.35	%(d)			3.18	%			2.36	%			2.75	%
Ratio of expenses to average managed assets(e)			3.10	%(d)			2.16	%			1.60	%			1.87	%
Ratio of net investment income to average net assets attributable to  common shares			9.55	%(d)			6.95	%			6.23	%			7.19	%
Portfolio turnover rate			30	%(f)			75	%			97	%			76	%
LEVERAGE FACILITY:
Aggregate principal amount, end of period (000s)		$	81,000			$	85,000			$	105,500			$	100,000
Average borrowings outstanding during the period (000s)		$	75,227			$	94,819			$	105,974			$	104,521
Asset coverage, end of period per $1,000(g)		$	3,305			$	3,143			$	3,079			$	3,153

 

See Notes to Financial Statements. 

Semi-Annual Report | June 30, 2023

69

Blackstone Senior Floating Rate 2027 Term Fund

Financial Highlights

For a Share Outstanding Throughout the Periods Indicated

 

		For the Year Ended December 31, 2019				For the Year Ended December 31, 2018				For the Year Ended December 31, 2017				For the Year Ended December 31, 2016
PER COMMON SHARE OPERATING PERFORMANCE:
Net asset value - beginning of period		$	16.48			$	17.57			$	17.61			$	15.96
INCOME/(LOSS) FROM INVESTMENT OPERATIONS:
Net investment income(b)			1.31				1.32				1.26				1.24
Net realized and unrealized gain/(loss) on investments, foreign currency transactions and unfunded loan commitments			(0.06	)			(1.00	)			(0.14	)			1.57
Total Income from Investment Operations			1.25				0.32				1.12				2.81
DISTRIBUTIONS TO COMMON SHAREHOLDERS:
From net investment income			(1.32	)			(1.41	)			(1.16	)			(1.16	)
Total Distributions to Common Shareholders			(1.32	)			(1.41	)			(1.16	)			(1.16	)
CAPITAL SHARE TRANSACTIONS:
Accretion to net asset value resulting from share repurchases			–				–				–				–
Total Capital Share Transactions			–				–				–				–
Net asset value per common share - end of period		$	16.41			$	16.48			$	17.57			$	17.61
Market price per common share - end of period		$	16.15			$	15.33			$	18.00			$	18.08
Total Investment Return - Net Asset Value(c)			7.92	%			1.88	%			6.67	%			18.44	%
Total Investment Return - Market Price(c)			14.17	%			(7.49	%)			6.44	%			30.70	%
RATIOS AND SUPPLEMENTAL DATA:
Net assets attributable to common shares, end of period (000s)		$	250,848			$	251,645			$	267,903			$	268,153
Ratio of expenses to average net assets attributable to common shares			3.54	%			3.35	%			3.01	%			2.59	%
Ratio of expenses to average managed assets(e)			2.37	%			2.25	%			2.02	%			1.74	%
Ratio of net investment income to average net assets attributable to  common shares			7.82	%			7.49	%			7.11	%			7.48	%
Portfolio turnover rate			40	%			88	%			135	%			99	%
LEVERAGE FACILITY:
Aggregate principal amount, end of period (000s)		$	123,500			$	124,000			$	132,000			$	131,000
Average borrowings outstanding during the period (000s)		$	125,408			$	132,067			$	132,323			$	122,782
Asset coverage, end of period per $1,000(g)		$	3,031			$	3,029			$	3,030			$	3,047

 

See Notes to Financial Statements. 

70	www.blackstone-credit.com

Blackstone Senior Floating Rate 2027 Term Fund

Financial Highlights

For a Share Outstanding Throughout the Periods Indicated

 

		For the Year Ended December 31, 2015				For the Year Ended December 31, 2014				For the Year Ended December 31, 2013
PER COMMON SHARE OPERATING PERFORMANCE:
Net asset value - beginning of period		$	18.08			$	19.27			$	19.31
INCOME/(LOSS) FROM INVESTMENT OPERATIONS:
Net investment income(b)			1.22				0.92				1.17
Net realized and unrealized gain/(loss) on investments, foreign currency transactions and unfunded loan commitments			(2.17	)			(0.84	)			0.08
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS:
From net investment income(b)			–				(0.06	)			(0.08	)
From net realized gains			–				–				–
Total Income/(Loss) from Investment Operations			(0.95	)			0.02				1.17
DISTRIBUTIONS TO COMMON SHAREHOLDERS:
From net investment income			(1.17	)			(0.86	)			(1.06	)
From net realized gains			–				(0.08	)			(0.15	)
From tax return of capital			–				(0.27	)			–
Total Distributions to Common Shareholders			(1.17	)			(1.21	)			(1.21	)
Net asset value per common share - end of period		$	15.96			$	18.08			$	19.27
Market price per common share - end of period		$	14.85			$	16.74			$	18.85
Total Investment Return - Net Asset Value(c)			(5.19	%)			0.38	%			6.27	%
Total Investment Return - Market Price(c)			(4.72	%)			(4.99	%)			(1.26	%)
RATIOS AND SUPPLEMENTAL DATA:
Net assets attributable to common shares, end of period (000s)		$	242,874			$	275,201			$	293,242
Ratio of expenses to average net assets attributable to common shares			2.48	%			3.02	%(h)			2.73	%(h)
Ratio of expenses to average managed assets(e)			1.67	%			2.02	%(h)			1.83	%(h)
Ratio of net investment income to average net assets attributable to common shares			6.84	%			4.88	%(h)			6.02	%(h)
Portfolio turnover rate			65	%			66	%			85	%
TERM PREFERRED SHARES:
Liquidation value, end of period, including dividends payable on Term  Preferred Shares (000s)		$	N/A			$	N/A	(i)		$	48,100
Total shares outstanding (000s)			–				–				48
Asset coverage per share		$	N/A			$	N/A	(i)		$	3,035	(j)
Liquidation preference per share		$	N/A			$	N/A	(i)		$	1,000
SENIOR SECURED NOTES:
Aggregate principal amount, end of period (000s)		$	N/A			$	–	(k)		$	96,000
Average borrowings outstanding during the period (000s)		$	N/A			$	96,000	(k)		$	96,000
Asset coverage, end of period per $1,000			N/A				N/A	(k)		$	4,556	(l)
LEVERAGE FACILITY:
Aggregate principal amount, end of period (000s)		$	119,500			$	133,000			$	N/A
Average borrowings outstanding during the period (000s)		$	132,372			$	137,412	(m)		$	N/A
Asset coverage, end of period per $1,000(g)		$	3,032			$	3,069			$	N/A

 

See Notes to Financial Statements.

Semi-Annual Report | June 30, 2023

71

Blackstone Senior Floating Rate 2027 Term Fund

Financial Highlights

For a Share Outstanding Throughout the Periods Indicated

 

*

Prior to March 6, 2023 Blackstone Senior Floating Rate 2027 Term Fund was named Blackstone Senior Floating Rate Term Fund.

(a)

Prior to December 10, 2020 the Blackstone Senior Floating Rate Term Fund was known as the Blackstone / GSO Senior Floating Rate Term Fund.

(b)

Calculated using average common shares outstanding.

(c)

Total investment return is calculated assuming a purchase of common share at the opening on the first day and a sale at closing on the last day of each period reported. Dividends and distributions are assumed for purposes of this calculation to be reinvested at prices obtained under the Fund's dividend reinvestment plan. Total investment returns does not reflect sales load or brokerage commissions, if any, and are not annualized.

(d)

Annualized.

(e)

Average managed assets represent net assets applicable to common shares plus principal value of leverage.

(f)

Percentage represents the results for the period and is not annualized.

(g)

Calculated by subtracting the Fund's total liabilities (excluding the principal amount of the Leverage Facility) from the Fund's total assets and dividing by the principal amount of the Leverage Facility and then multiplying by $1,000.

(h)

Ratios do not reflect dividend payments to preferred shareholders.

(i)

On October 8, 2014, BSL redeemed 100% of the term preferred shares at 100% of their liquidation preference.

(j)

Calculated by subtracting the Fund's total liabilities (excluding Term Preferred Shares and Senior Secured Notes) from the Fund's total assets and dividing by the sum of the Term Preferred Shares and the Senior Secured Notes and then multiplying by $1,000.

(k)

On October 8, 2014, BSL redeemed 100% of the senior secured notes at 100% of their principal amount and entered into a new 364-day revolving credit facility. Average borrowings are shown for the period January 1, 2014 through the redemption date.

(l)

Calculated by subtracting the Fund's total liabilities (excluding Term Preferred Shares and Senior Secured Notes) from the Fund's total assets and dividing by the principal amount of Senior Secured Notes and then multiplying by $1,000.

(m)

Since first borrowing was made on October 8, 2014.

 

See Notes to Financial Statements. 

72	www.blackstone-credit.com

Blackstone Long-Short Credit Income Fund

Financial Highlights

For a Share Outstanding Throughout the Periods Indicated

 

		For the Six Months Ended June 30, 2023 (Unaudited)				For the Year Ended December 31, 2022				For the Year Ended December 31, 2021				For the Year Ended December 31, 2020 (a)
PER COMMON SHARE OPERATING PERFORMANCE:
Net asset value - beginning of period		$	12.55			$	15.22			$	14.94			$	15.74
INCOME/(LOSS) FROM INVESTMENT OPERATIONS:
Net investment income(b)(c)			0.63				1.06				1.06				1.18
Net realized and unrealized gain/(loss) on investments, foreign currency transactions and unfunded loan commitments			0.32				(2.85	)			0.25				(0.79	)
Total Income/(Loss) from Investment Operations			0.95				(1.79	)			1.31				0.39
DISTRIBUTIONS TO COMMON SHAREHOLDERS:
From net investment income			(0.59	)			(0.88	)			(1.03	)			(1.19	)
Total Distributions to Common Shareholders			(0.59	)			(0.88	)			(1.03	)			(1.19	)
Net asset value per common share - end of period		$	12.91			$	12.55			$	15.22			$	14.94
Market price per common share - end of period		$	11.34			$	10.84			$	14.70			$	13.42
Total Investment Return - Net Asset Value(d)			8.41	%			(11.19	%)			9.26	%			4.41	%
Total Investment Return - Market Price(d)			10.24	%			(20.58	%)			17.48	%			(5.62	%)
RATIOS AND SUPPLEMENTAL DATA:
Net assets attributable to common shares, end of period (000s)		$	164,029			$	159,531			$	193,368			$	189,901
Ratio of expenses to average net assets attributable to common shares			5.48	%(e)			3.67	%			2.69	%			3.08	%
Ratio of expenses to average managed assets(f)			3.40	%(e)			2.24	%			1.67	%			1.89	%
Ratio of net investment income to average net assets attributable to  common shares			9.93	%(e)			7.68	%			6.89	%			8.28	%
Portfolio turnover rate			45	%(g)			94	%			90	%			77	%
MANDATORY REDEEMABLE PREFERRED SHARES:
Liquidation value, end of period, including dividends payable on  Mandatory Redeemable
Preferred Shares (000s)		$	20,128			$	20,125			$	20,128			$	20,128
Total shares outstanding (000s)			20				20				20				20
Asset coverage, end of period per $1,000(h)		$	2,644			$	2,550			$	2,626			$	2,638
Liquidation preference per share		$	1,000			$	1,000			$	1,000			$	1,000
LEVERAGE FACILITY:
Aggregate principal amount, end of period (000s)		$	79,800			$	82,800			$	98,900			$	95,900
Average borrowings outstanding during the period (000s)		$	79,949			$	92,127			$	100,347			$	93,946
Asset coverage, end of period per $1,000(i)		$	3,306			$	3,170			$	3,157			$	3,189

 

See Notes to Financial Statements.

Semi-Annual Report | June 30, 2023

73

Blackstone Long-Short Credit Income Fund

Financial Highlights

For a Share Outstanding Throughout the Periods Indicated

 

		For the Year Ended December 31, 2019				For the Year Ended December 31, 2018				For the Year Ended December 31, 2017				For the Year Ended December 31, 2016
PER COMMON SHARE OPERATING PERFORMANCE:
Net asset value - beginning of period		$	15.62			$	17.09			$	16.94			$	15.37
INCOME/(LOSS) FROM INVESTMENT OPERATIONS:
Net investment income(b)(c)			1.46				1.46				1.34				1.40
Net realized and unrealized gain/(loss) on investments, foreign currency transactions and unfunded loan commitments			0.12				(1.32	)			0.05				1.60
Total Income from Investment Operations			1.58				0.14				1.39				3.00
DISTRIBUTIONS TO COMMON SHAREHOLDERS:
From net investment income			(1.46	)			(1.61	)			(1.24	)			(1.43	)
Total Distributions to Common Shareholders			(1.46	)			(1.61	)			(1.24	)			(1.43	)
Net asset value per common share - end of period		$	15.74			$	15.62			$	17.09			$	16.94
Market price per common share - end of period		$	15.64			$	13.74			$	15.92			$	15.92
Total Investment Return - Net Asset Value(d)			10.73	%			1.25	%			8.85	%			21.21	%
Total Investment Return - Market Price(d)			25.08	%			(4.40	%)			7.90	%			29.89	%
RATIOS AND SUPPLEMENTAL DATA:
Net assets attributable to common shares, end of period (000s)		$	199,982			$	198,399			$	217,067			$	215,236
Ratio of expenses to average net assets attributable to common shares			3.85	%			3.73	%			3.03	%			2.58	%
Ratio of expenses to average managed assets(f)			2.36	%			2.31	%			1.93	%			1.73	%
Ratio of net investment income to average net assets attributable to common shares			9.15	%			8.52	%			7.82	%			8.67	%
Portfolio turnover rate			40	%			75	%			126	%			103	%
MANDATORY REDEEMABLE PREFERRED SHARES:
Liquidation value, end of period, including dividends payable on Mandatory Redeemable
Preferred Shares (000s)		$	20,128			$	20,122			$	20,121			$	20,125
Total shares outstanding (000s)			20				20				20				20
Asset coverage, end of period per $1,000(h)		$	2,562			$	2,556			$	2,644			$	2,905
Liquidation preference per share		$	1,000			$	1,000			$	1,000			$	1,000
LEVERAGE FACILITY:
Aggregate principal amount, end of period (000s)		$	108,000			$	107,500			$	112,000			$	93,000
Average borrowings outstanding during the period (000s)		$	109,385			$	115,392			$	105,633			$	93,684
Asset coverage, end of period per $1,000(i)		$	3,037			$	3,032			$	3,117			$	3,314

 

See Notes to Financial Statements.

74	www.blackstone-credit.com

Blackstone Long-Short Credit Income Fund

Financial Highlights

For a Share Outstanding Throughout the Periods Indicated

 

		For the Year Ended December 31, 2015				For the Year Ended December 31, 2014				For the Year Ended December 31, 2013
PER COMMON SHARE OPERATING PERFORMANCE:
Net asset value - beginning of period		$	17.82			$	19.11			$	18.97
INCOME/(LOSS) FROM INVESTMENT OPERATIONS:
Net investment income(b)(c)			1.48				0.94				1.13
Net realized and unrealized gain/(loss) on investments, foreign currency transactions and unfunded loan commitments			(2.66	)			(1.03	)			0.36
Total Income/(Loss) from Investment Operations			(1.18	)			(0.09	)			1.49
DISTRIBUTIONS TO COMMON SHAREHOLDERS:
From net investment income			(1.27	)			(0.96	)			(1.23	)
From net realized gains			–				(0.06	)			(0.12	)
From tax return of capital			–				(0.18	)			–
Total Distributions to Common Shareholders			(1.27	)			(1.20	)			(1.35	)
Net asset value per common share - end of period		$	15.37			$	17.82			$	19.11
Market price per common share - end of period		$	13.48			$	15.53			$	17.87
Total Investment Return - Net Asset Value(d)			(6.04	%)			(0.06	%)			8.34	%
Total Investment Return - Market Price(d)			(5.44	%)			(6.86	%)			2.50	%
RATIOS AND SUPPLEMENTAL DATA:
Net assets attributable to common shares, end of period (000s)		$	195,204			$	226,316			$	242,699
Ratio of expenses to average net assets attributable to common shares			2.07	%			1.85	%			1.83	%
Ratio of expenses to average managed assets(f)			1.43	%			1.66	%			N/A
Ratio of net investment income to average net assets attributable to common shares			8.45	%			4.99	%			5.94	%
Portfolio turnover rate			72	%			66	%			80	%
LEVERAGE FACILITY:
Aggregate principal amount, end of period (000s)		$	96,000			$	73,000				$N/A
Average borrowings outstanding during the period (000s)		$	100,261			$	66,827	(j)			$N/A
Asset coverage, end of period per $1,000(i)		$	3,033			$	4,100				$N/A

 

(a)

Prior to December 10, 2020 the Blackstone Long-Short Credit Income Fund was known as the Blackstone / GSO Long-Short Credit Income Fund.

(b)

Calculated using average common shares outstanding.

(c)

Distributions on the Company's MRPS are treated as an operating expense under GAAP and are included in the calculation of net investment income. See Note 11 - Leverage.

(d)

Total investment return is calculated assuming a purchase of common share at the opening on the first day and a sale at closing on the last day of each period reported. Dividends and distributions are assumed for purposes of this calculation to be reinvested at prices obtained under the Fund's dividend reinvestment plan. Total investment returns does not reflect sales load or brokerage commissions, if any, and are not annualized.

(e)

Annualized.

(f)

Average managed assets represent net assets applicable to common shares plus principal value of leverage.

(g)

Percentage represents the results for the period and is not annualized.

(h)

Calculated by subtracting the Fund's total liabilities (excluding the liquidation value of the Mandatory Redeemable Preferred Shares and the principal amount of the Leverage Facility) from the Fund's total assets and dividing by the liquidation value of the Mandatory Redeemable Preferred Shares and the principal amount of the Leverage Facility and then multiplying by $1,000.

(i)

Calculated by subtracting the Fund's total liabilities (excluding Mandatory Redeemable Preferred Shares at liquidation value, including dividends payable on mandatory redeemable preferred shares, and the principal amount of the Leverage Facility) from the Fund's total assets and dividing by the principal amount of the Leverage Facility and then multiplying by $1,000.

(j)

Since first borrowing was made on July 29, 2014.

 

See Notes to Financial Statements.

Semi-Annual Report | June 30, 2023

75

Blackstone Strategic Credit 2027 Term Fund

Financial Highlights

For a Share Outstanding Throughout the Periods Indicated

 

		For the Six Months Ended June 30, 2023 (Unaudited) *				For the Year Ended December 31, 2022				For the Year Ended December 31, 2021				For the Year Ended December 31, 2020 (a)				For the Year Ended December 31, 2019
PER COMMON SHARE OPERATING PERFORMANCE:
Net asset value - beginning of period		$	12.06			$	14.44			$	14.19			$	15.25			$	15.30
INCOME/(LOSS) FROM INVESTMENT OPERATIONS:
Net investment income(b)(c)			0.57				0.93				0.93				1.08				1.35
Net realized and unrealized gain/(loss) on investments, foreign currency transactions and unfunded loan commitments			0.29				(2.53	)			0.21				(1.04	)			(0.06	)
Total Income/(Loss) from Investment Operations			0.86				(1.60	)			1.14				0.04				1.29
DISTRIBUTIONS TO COMMON SHAREHOLDERS:
From net investment income			(0.53	)			(0.78	)			(0.89	)			(1.10	)			(1.34	)
Total Distributions to Common Shareholders			(0.53	)			(0.78	)			(0.89	)			(1.10	)			(1.34	)
Net asset value per common share - end of period		$	12.39			$	12.06			$	14.44			$	14.19			$	15.25
Market price per common share - end of period		$	10.93			$	10.58			$	13.49			$	12.48			$	14.38
Total Investment Return - Net Asset Value(d)			7.80	%			(10.68	%)			8.60	%			2.03	%			9.29	%
Total Investment Return - Market Price(d)			8.41	%			(16.13	%)			15.36	%			(4.83	%)			17.05	%
RATIOS AND SUPPLEMENTAL DATA:
Net assets attributable to common shares, end of period (000s)		$	553,205			$	538,860			$	645,050			$	633,741			$	681,312
Ratio of expenses to average net assets
attributable to common shares			5.27	%(e)			3.67	%			2.78	%			3.15	%			3.97	%
Ratio of expenses to average managed assets(f)			3.40	%(e)			2.32	%			1.77	%			2.00	%			2.50	%
Ratio of net investment income to average net  assets attributable to common shares			9.28	%(e)			7.08	%			6.36	%			7.90	%			8.68	%
Portfolio turnover rate			46	%(g)			81	%			101	%			77	%			40	%
MANDATORY REDEEMABLE PREFERRED SHARES:
Liquidation value, end of period, including dividends payable on Mandatory Redeemable Preferred Shares (000s)		$	45,289			$	45,281			$	45,287			$	45,287			$	45,287
Total shares outstanding (000s)			45				45				45				45				45
Asset coverage, end of period per $1,000(h)		$	2,808			$	2,715			$	2,749			$	2,790			$	2,697
Liquidation preference per share		$	1,000			$	1,000			$	1,000			$	1,000			$	1,000
LEVERAGE FACILITY:
Aggregate principal amount, end of period (000s)		$	260,900			$	268,900			$	323,800			$	309,100			$	356,500
Average borrowings outstanding during the period (000s)		$	256,718			$	300,105			$	325,709			$	306,661			$	363,945
Asset coverage, end of period per $1,000(i)		$	3,293			$	3,172			$	3,131			$	3,196			$	3,037

 

See Notes to Financial Statements.

76	www.blackstone-credit.com

Blackstone Strategic Credit 2027 Term Fund

Financial Highlights

For a Share Outstanding Throughout the Periods Indicated

 

		For the Year Ended December 31, 2018
PER COMMON SHARE OPERATING PERFORMANCE:
Net asset value - beginning of period		$	16.89
INCOME/(LOSS) FROM INVESTMENT OPERATIONS:
Net investment income(b)(c)			1.38
Net realized and unrealized loss on investments, foreign currency transactions and unfunded loan commitments			(1.46	)
Total Loss from Investment Operations			(0.08	)
DISTRIBUTIONS TO COMMON SHAREHOLDERS:
From net investment income			(1.51	)
Total Distributions to Common Shareholders			(1.51	)
Net asset value per common share - end of period		$	15.30
Market price per common share - end of period		$	13.47
Total Investment Return - Net Asset Value(d)			(0.02	%)
Total Investment Return - Market Price(d)			(5.37	%)
RATIOS AND SUPPLEMENTAL DATA:
Net assets attributable to common shares, end of period (000s)		$	683,578
Ratio of expenses to average net assets attributable to common shares			3.72	%
Ratio of expenses to average managed assets(f)			2.36	%
Ratio of net investment income to average net assets attributable to common shares			8.20	%
Portfolio turnover rate			76	%
MANDATORY REDEEMABLE PREFERRED SHARES:
Liquidation value, end of period, including dividends payable on Mandatory Redeemable Preferred Shares (000s)		$	45,274
Total shares outstanding (000s)			45
Asset coverage, end of period per $1,000(h)		$	2,682
Liquidation preference per share		$	1,000
LEVERAGE FACILITY:
Aggregate principal amount, end of period (000s)		$	361,500
Average borrowings outstanding during the period (000s)		$	387,479
Asset coverage, end of period per $1,000(i)		$	3,015

 

*

Prior to March 6, 2023 Blackstone Strategic Credit 2027 Term Fund was named Blackstone Strategic Credit Fund.

(a)

Prior to December 10, 2020 the Blackstone Strategic Credit Fund was known as the Blackstone / GSO Strategic Credit Fund.

(b)

Calculated using average common shares outstanding.

(c)

Distributions on the Company's MRPS are treated as an operating expense under GAAP and are included in the calculation of net investment income. See Note 11 - Leverage.

(d)

Total investment return is calculated assuming a purchase of common share at the opening on the first day and a sale at closing on the last day of each period reported. Dividends and distributions are assumed for purposes of this calculation to be reinvested at prices obtained under the Fund's dividend reinvestment plan. Total investment returns does not reflect sales load or brokerage commissions, if any, and are not annualized.

 

See Notes to Financial Statements.

Semi-Annual Report | June 30, 2023

77

Blackstone Strategic Credit 2027 Term Fund

Financial Highlights

For a Share Outstanding Throughout the Periods Indicated

 

(e)

Annualized.

(f)

Average managed assets represent net assets applicable to common shares plus principal value of leverage.

(g)

Percentage represents the results for the period and is not annualized.

(h)

Calculated by subtracting the Fund's total liabilities (excluding the liquidation value of the Mandatory Redeemable Preferred Shares and the principal amount of the Leverage Facility) from the Fund's total assets and dividing by the liquidation value of the Mandatory Redeemable Preferred Shares and the principal amount of the Leverage Facility and then multiplying by $1,000.

(i)

Calculated by subtracting the Fund's total liabilities (excluding Mandatory Redeemable Preferred Shares at liquidation value, including dividends payable on mandatory redeemable preferred shares, and the principal amount of the Leverage Facility) from the Fund's total assets and dividing by the principal amount of the Leverage Facility and then multiplying by $1,000.

 

See Notes to Financial Statements.

78	www.blackstone-credit.com

Blackstone Credit Funds

Notes to Financial Statements

June 30, 2023 (Unaudited)

 

NOTE 1. ORGANIZATION

 

Blackstone Senior Floating Rate 2027 Term Fund (formerly known as Blackstone Senior Floating Rate Term Fund) (“BSL”), is a diversified, closed-end management investment company. BSL was organized as a Delaware statutory trust on March 4, 2010. BSL was registered under the Investment Company Act of 1940, as amended (the “1940 Act”), on March 5, 2010. BSL commenced operations on May 26, 2010. Prior to that date, BSL had no operations other than matters relating to its organization and the sale and issuance of 5,236 common shares of beneficial interest in BSL to Blackstone Liquid Credit Strategies LLC (the “Adviser”) at a price of $19.10 per share. The Adviser serves as BSL’s investment adviser. BSL’s common shares are listed on the New York Stock Exchange (the “Exchange”) and trade under the ticker symbol “BSL.”

 

Absent shareholder approval to extend the term of BSL, BSL was initially scheduled to dissolve on or about May 31, 2020. Upon dissolution, BSL will distribute substantially all of its net assets to shareholders, after making appropriate provision for any liabilities. Pursuant to BSL’s Amended and Restated Agreement and Declaration of Trust, prior to the date of dissolution a majority of BSL’s Board of Trustees (the “BSL Board”), with the approval of a majority of the shareholders entitled to vote (as defined in the 1940 Act), may extend the life of BSL by a period of two years or such shorter time as may be determined. The dissolution date of BSL may be extended an unlimited number of times. On March 31, 2017, BSL announced an extension of BSL’s reinvestment period. The extension allows BSL to continue to reinvest proceeds generated by maturities, prepayments and sales of investments until one year prior to BSL’s scheduled dissolution date. On November 17, 2017, BSL’s shareholders approved extending the term of BSL by two years by changing BSL’s scheduled dissolution date from May 31, 2020 to May 31, 2022. On November 18, 2019, the BSL Board approved a proposal to amend BSL's charter to allow an extension of up to five years in length (the “Charter Amendment”). The BSL Board also approved a proposal to extend the term of BSL by five years by changing BSL's scheduled dissolution date from May 31, 2022 to May 31, 2027 (the “Term Extension”). The Charter Amendment and the Term Extension were subject to shareholder approval, which was obtained at a special shareholder meeting held on February 19, 2020.

 

On January 26, 2022, the Securities and Exchange Commission (the "SEC") declared effective a registration statement filed under the “shelf” registration process for BSL. Pursuant to the shelf registration, BSL may offer, from time to time, in one or more offerings, up to $100,000,000 of common shares. These shares may be offered and sold to or through underwriters, through dealers or agents that BSL designates from time to time, directly to purchasers, through at-the-market ("ATM") offerings or through a combination of these methods. On February 1, 2022, BSL launched an ATM offering to sell up to $50,000,000 aggregate amount of its common shares. During the year ended December 31, 2022, BSL sold 2,004 common shares totaling $32,583, net of offering costs of $87, pursuant to this shelf registration. For the period ended June 30, 2023, BSL did not sell any shares pursuant to this shelf registration.

 

Blackstone Long-Short Credit Income Fund (“BGX”) is a diversified, closed-end management investment company. BGX was organized as a Delaware statutory trust on October 22, 2010. BGX was registered under the 1940 Act on October 26, 2010. BGX commenced operations on January 27, 2011. Prior to that, BGX had no operations other than matters relating to its organization and the sale and issuance of 5,236 common shares of beneficial interest in BGX to the Adviser at a price of $19.10 per share. The Adviser serves as the investment adviser for BGX. BGX’s common shares are listed on the Exchange and trade under the ticker symbol “BGX.”

 

On May 22, 2020, the SEC declared effective a registration statement filed under the “shelf” registration process for BGX. Pursuant to the shelf registration, BGX may offer, from time to time, in one or more offerings, up to $100,000,000 of common shares. These shares may be offered and sold to or through underwriters, through dealers or agents that BGX designates from time to time, directly to purchasers, through at-the-market ("ATM") offerings or through a combination of these methods. On August 19, 2020, BGX launched an ATM offering to sell up to $50,000,000 aggregate amount of its common shares. On July 30, 2021, the SEC declared effective an updated shelf registration statement and BGX filed an updated prospectus supplement with respect to the ATM offering on August 19, 2021. As of June 30, 2023, BGX has not yet sold any shares pursuant to this shelf registration.

 

Blackstone Strategic Credit 2027 Term Fund (formerly known as Blackstone Strategic Credit Fund) (“BGB” and, collectively with BSL and BGX, the “Funds”) is a diversified, closed-end management investment company. BGB was organized as a Delaware statutory trust on March 28, 2012. BGB was registered under the 1940 Act on April 6, 2012. BGB commenced operations on September 26, 2012. Prior to that, BGB had no operations other than matters relating to its organization and the sale and issuance of 5,236 common shares of beneficial interest in BGB to the Adviser at a price of $19.10 per share. The Adviser serves as the investment adviser for BGB. BGB’s common shares are listed on the Exchange and trade under the ticker symbol “BGB.”

 

BGB will dissolve on or about September 15, 2027, absent shareholder approval to extend such term. Upon dissolution, BGB will distribute substantially all of its net assets to shareholders, after making appropriate provision for any liabilities. Pursuant to BGB’s Amended and Restated Agreement and Declaration of Trust, prior to the date of dissolution a majority of BGB’s Board of Trustees (the “BGB Board”), with the approval of a majority of the outstanding voting securities entitled to vote (as defined in the 1940 Act), may extend the life of BGB. If approved, the dissolution date of BGB may be extended by a period of two years or such shorter time as may be determined. The dissolution date of BGB may be extended an unlimited number of times.

 

Semi-Annual Report | June 30, 2023

79

Blackstone Credit Funds

Notes to Financial Statements

June 30, 2023 (Unaudited)

 

The Funds were previously classified as non-diversified investment companies for purposes of the 1940 Act. As a result of ongoing operations, the Funds are now classified as diversified companies; BGX and BSL as of April 1, 2014 and BGB as of September 25, 2015. This means that with respect to 75% of each Fund’s total assets, no more than 5% of such Fund’s total assets may be invested in any one issuer, excepting cash and cash items, U.S. government securities, and securities of other investment companies. The Funds may not resume operating in a non-diversified manner without first obtaining shareholder approval in accordance with the 1940 Act. The name changes of BSL and BGB became effective on March 6, 2023.

 

Investment Objectives: BSL’s primary investment objective is to seek high current income, with a secondary objective to seek preservation of capital, consistent with its primary goal of high current income. Under normal market conditions, at least 80% of BSL’s Managed Assets (defined in Note 3) will be invested in senior secured, floating rate loans (“Senior Loans”).

 

BGX’s primary investment objective is to provide current income, with a secondary objective of capital appreciation. BGX seeks to achieve its investment objectives by employing a dynamic long-short strategy in a diversified portfolio of loans and fixed-income instruments of predominantly U.S. corporate issuers, including first- and second-lien secured loans (“Secured Loans”) and high-yield corporate debt securities of varying maturities. BGX’s short positions, either directly or through the use of derivatives, may total up to 30% of such Fund’s net assets.

 

BGB’s primary investment objective is to seek high current income, with a secondary objective to seek preservation of capital, consistent with its primary goal of high current income. BGB will seek to achieve its investment objectives by investing primarily in a diversified portfolio of loans and other fixed income instruments of predominantly U.S. corporate issuers, including first- and second-lien secured loans (‘‘Senior Secured Loans’’) and high yield corporate bonds of varying maturities. Under normal market conditions, at least 80% of BGB’s Managed Assets (defined in Note 3) will be invested in credit investments comprised of corporate fixed income instruments and other investments (including derivatives) with similar economic characteristics.

 

Senior Loans, Secured Loans and Senior Secured Loans are referred to collectively as “Loans” throughout the Notes to Financial Statements.

 

NOTE 2. SIGNIFICANT ACCOUNTING POLICIES

 

Basis of Presentation: The Funds' financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and are stated in U.S. dollars. Each Fund is considered an Investment Company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies in the Financial Accounting Standards Board Accounting Standards Codification Topic 946.

 

The preparation of financial statements requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statement. Actual results could differ from these estimates.

 

Portfolio Valuation: Each Fund’s net asset value (“NAV”) is determined daily on each day that the Exchange is open for business, as of the close of the regular trading session on the Exchange. Each Fund calculates NAV per share by subtracting liabilities (including accrued expenses or dividends) from the total assets of such Fund (the value of the securities plus cash or other assets, including interest accrued but not yet received) and dividing the result by the total number of outstanding common shares of such Fund.

 

Loans are primarily valued by using a composite loan price from a nationally recognized loan pricing service. The methodology used by the Funds’ nationally recognized loan pricing provider for composite loan prices is to value loans at the mean of the bid and ask prices from one or more brokers or dealers. Collateralized Loan Obligation securities (“CLOs”) are valued at the price provided by a nationally recognized pricing service. The prices provided by the nationally recognized pricing service are typically based on the evaluated mid-price of each of the CLOs. Corporate bonds and convertible bonds, other than short-term investments, are valued at the price provided by a nationally recognized pricing service. The prices provided by the nationally recognized pricing service are typically based on the mean of bid and ask prices for each corporate bond security. In determining the value of a particular investment, pricing services may use certain information with respect to transactions in such investments, quotations from dealers, pricing matrices, market transactions in comparable investments, various relationships observed in the market between investments and calculated yield measures based on valuation technology commonly employed in the market for such investments. Equity securities for which market quotations are available are generally valued at the last sale price or official closing price on the primary market or exchange on which they trade. Futures contracts, if any, are ordinarily valued at the last sales price on the securities or commodities exchange on which they are traded. Written and purchased options, if any, are ordinarily valued at the closing price on the securities or commodities exchange on which they are traded. To the extent current market quotations are not readily available, short-term debt investments, if any, having a remaining maturity of 60 days or less when purchased would be valued at cost adjusted for amortization of premiums and accretion of discounts.

 

80	www.blackstone-credit.com

Blackstone Credit Funds

Notes to Financial Statements

June 30, 2023 (Unaudited)

 

On December 3, 2020, the SEC adopted a new rule under the 1940 Act regarding fair value determinations that permits a fund’s board to delegate such determinations to the fund’s adviser, subject to certain conditions (“Rule 2a-5”). Rule 2a-5 became effective as of March 8, 2021, and the mandatory compliance date was September 8, 2022. In accordance with Rule 2a-5, the Funds’ Board of Trustees (the “Board”) the Board has designated the Adviser as the valuation designee to perform fair value determinations related to each Fund’s investments, subject to the Board’s oversight and periodic reporting requirements.

 

Any investments and other assets for which such current market quotations are not readily available are valued at fair value (“Fair Valued Assets”) as determined in good faith by a committee of the Adviser (“Fair Valued Asset Committee”) under procedures established by, and under the general supervision and responsibility of, the Funds’ Board. Such methods may include, but are not limited to, the use of a market comparable and/or income approach methodologies. A Fair Valued Asset Committee meeting may be called at any time by any member of the Fair Valued Asset Committee. The pricing of all Fair Valued Assets and determinations thereof shall be reported by the Adviser as the valuation designee to the Board at each regularly scheduled quarterly meeting. The Funds have procedures to identify and investigate potentially stale or missing prices for investments which are valued using a nationally recognized pricing service, exchange price or broker-dealer quotations. After performing such procedures, any prices which are deemed to be stale are reviewed by the Fair Valued Asset Committee and an alternative pricing source is determined.

 

Various inputs are used to determine the value of the Funds’ investments. Observable inputs are inputs that reflect the assumptions market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the reporting entity. Unobservable inputs are inputs that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The three-tier hierarchy of inputs is summarized in the three broad levels listed below.

 

Level 1— Unadjusted quoted prices in active markets for identical investments at the measurement date. 

Level 2— Significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.).

Level 3— Significant unobservable inputs (including the Funds’ own assumptions in determining the fair value of investments).

 

The categorization of a value determined for investments and other financial instruments is based on the pricing transparency of the investment and other financial instrument and does not necessarily correspond to the Funds’ perceived risk of investing in those securities. Investments measured and reported at fair value are classified and disclosed in one of the following levels within the fair value hierarchy based on the lowest level of input that is significant to the fair value measurement.

 

Semi-Annual Report | June 30, 2023

81

Blackstone Credit Funds

Notes to Financial Statements

June 30, 2023 (Unaudited)

 

The following tables summarize valuation of the Funds’ investments under the fair value hierarchy levels as of June 30, 2023:

 

Blackstone Senior Floating Rate 2027 Term Fund

 

Investments in Securities at Value*		Level 1 - Quoted Prices				Level 2 - Significant Observable Inputs				Level 3 - Significant Unobservable Inputs				Total
Floating Rate Loan Interests
Aerospace & Defense		$	–			$	8,926,270			$	2,326,527			$	11,252,797
Diversified Consumer Services			–				8,570,850				481,062				9,051,912
Entertainment			–				2,033,037				847,291				2,880,328
Financial Services			–				5,460,676				1,469,636				6,930,312
Food Products			–				2,881,110				1,272,000				4,153,110
IT Services			–				5,107,064				1,319,181				6,426,245
Software			–				23,405,733				1,384,772				24,790,505
Specialty Retail			–				–				2,320,566				2,320,566
Other			–				188,178,597				–				188,178,597
Collateralized Loan Obligation Securities
Banks			–				–				429,321				429,321
Consumer Finance			–				–				871,358				871,358
Financial Services			–				–				6,888,518				6,888,518
Corporate Bonds			–				5,531,639				–				5,531,639
Common Stock
Health Care Equipment & Supplies			–				–				416,325				416,325
Short-Term Investments			8,262,136				–				–				8,262,136
Total		$	8,262,136			$	250,094,976			$	20,026,557			$	278,383,669
Other Financial Instruments
Assets
Net Unrealized Appreciation on Unfunded Loan Commitments			–				1,872				–				1,872
Total			–				1,872				–				1,872

 

Blackstone Long-Short Credit Income Fund

 

Investments in Securities at Value*		Level 1 - Quoted Prices				Level 2 - Significant Observable Inputs				Level 3 - Significant Unobservable Inputs				Total
Floating Rate Loan Interests
Aerospace & Defense		$	–			$	7,256,162			$	2,444,167			$	9,700,329
Diversified Consumer Services			–				6,388,338				424,688				6,813,026
Entertainment			–				2,564,711				748,944				3,313,655
Financial Services			–				4,386,774				1,295,117				5,681,891
Food Products			–				2,158,946				1,122,938				3,281,884
IT Services			–				4,399,774				1,254,360				5,654,134
Software			–				20,652,960				1,333,284				21,986,244
Specialty Retail			–				113,258				1,762,975				1,876,233
Other			–				157,825,292				–				157,825,292
Collateralized Loan Obligation Securities
Banks			–				–				214,661				214,661
Consumer Finance			–				–				1,782,508				1,782,508
Financial Services			–				–				8,046,354				8,046,354
Corporate Bonds			–				40,253,930				–				40,253,930
Common Stock
Health Care Equipment & Supplies			–				–				570,533				570,533
Short Term Investments			4,951,095				–				–				4,951,095
Total		$	4,951,095			$	246,000,145			$	21,000,529			$	271,951,769
Other Financial Instruments
Assets
Net Unrealized Appreciation on Unfunded Loan Commitments			–				1,493				–				1,493
Total			–				1,493				–				1,493

 

82

www.blackstone-credit.com

Blackstone Credit Funds

Notes to Financial Statements

June 30, 2023 (Unaudited)

 

Blackstone Strategic Credit 2027 Term Fund

 

Investments in Securities at Value*		Level 1 - Quoted Prices				Level 2 - Significant Observable Inputs				Level 3 - Significant Unobservable Inputs				Total
Floating Rate Loan Interests
Aerospace & Defense		$	–			$	24,869,578			$	7,543,875			$	32,413,453
Diversified Consumer Services			–				26,483,616				1,413,119				27,896,735
Entertainment			–				8,547,569				2,481,351				11,028,920
Financial Services			–				13,358,629				4,317,056				17,675,685
Food Products			–				7,229,280				3,726,562				10,955,842
Hotels, Restaurants & Leisure			–				31,996,862				119,348				32,116,210
IT Services			–				14,234,877				4,312,755				18,547,632
Software			–				74,724,963				1,273,655				75,998,618
Specialty Retail			–				369,772				5,937,691				6,307,463
Other			–				485,019,773				–				485,019,773
Corporate Bonds			–				148,136,737				–				148,136,737
Common Stock
Energy Equipment & Services			–				207,626				–				207,626
Health Care Equipment & Supplies			–				–				1,819,088				1,819,088
Oil, Gas & Consumable Fuels			360,627				–				1,106,625				1,467,252
Warrants
Energy Equipment & Services			–				–				3,182				3,182
Short Term Investments			15,976,146				–				–				15,976,146
Total		$	16,336,773			$	835,179,282			$	34,054,307			$	885,570,362
Other Financial Instruments
Assets
Net Unrealized Appreciation on Unfunded Loan Commitments			–				5,140				–				5,140
Total			–				5,140				–				5,140

   

*	Refer to each Fund's Portfolio of Investments for a listing of securities by type.

 

The changes of the fair value of investments for which the Funds have used significant unobservable (Level 3) inputs to determine the fair value are as follows:

 

Blackstone Senior Floating Rate 2027 Term Fund		Floating Rate Loan Interests				Collateralized Loan Obligation Securities				Common Stock				Total
Balance as of December 31, 2022		$	7,789,140			$	13,629,173			$	–			$	21,418,313
Accrued discount/ premium			9,958				6,987				–				16,945
Realized Gain/(Loss)			40,015				(51,090	)			–				(11,075	)
Change in Unrealized Appreciation/(Depreciation)			129,813				331,696				–				461,509
Purchases(1)			6,284,160				–				–				6,284,160
Sales Proceeds(2)			(1,991,730	)			(5,727,569	)			–				(7,719,299	)
Transfer into Level 3			5,882,717				–				416,325				6,299,042
Transfer out of Level 3			(6,723,038	)			–				–				(6,723,038	)
Balance as of June 30, 2023		$	11,421,035			$	8,189,197			$	416,325			$	20,026,557
Net change in unrealized appreciation/(depreciation) included in the Statements of Operations attributable to Level 3 investments held at June 30, 2023		$	71,659			$	88,957			$	(555,100	)		$	(394,484	)

  

Semi-Annual Report | June 30, 2023

83

Blackstone Credit Funds

Notes to Financial Statements

June 30, 2023 (Unaudited)

 

Blackstone Long-Short Credit Income Fund		Floating Rate Loan Interests				Collateralized Loan Obligation Securities				Common Stock				Total
Balance as of December 31, 2022		$	6,740,735			$	15,402,183			$	–			$	22,142,918
Accrued discount/ premium			20,732				11,178				–				31,910
Realized Gain/(Loss)			34,879				(59,474	)			–				(24,595	)
Change in Unrealized Appreciation/(Depreciation)			95,778				392,065				–				487,843
Purchases(1)			5,908,628				–				–				5,908,628
Sales Proceeds(2)			(1,685,829	)			(5,702,429	)			–				(7,388,258	)
Transfer into Level 3			3,567,992				–				570,533				4,138,525
Transfer out of Level 3			(4,296,442	)			–				–				(4,296,442	)
Balance as of June 30, 2023		$	10,386,473			$	10,043,523			$	570,533			$	21,000,529
Net change in unrealized appreciation/(depreciation) included in the Statements of Operations attributable to Level 3 investments held at June 30, 2023		$	55,745			$	174,459			$	(760,711	)		$	(530,507	)

 

Blackstone Strategic Credit 2027 Term Fund		Floating Rate Loan Interests				Common Stock				Warrants				Total
Balance as of December 31, 2022		$	22,825,834			$	6,364,208			$	–			$	29,190,042
Accrued discount/ premium			70,221				–				–				70,221
Return of Capital			–				(1,397,346	)			–				(1,397,346	)
Realized Gain/(Loss)			118,109				(1,543,787	)			–				(1,425,678	)
Change in Unrealized Appreciation/(Depreciation)			341,729				1,754,948				–				2,096,677
Purchases(1)			16,793,658				-				–				16,793,658
Sales Proceeds(2)			(6,137,343	)			(3,863,772	)			–				(10,001,115	)
Transfer into Level 3			10,239,716				1,819,088				3,182				12,061,986
Transfer out of Level 3			(13,126,512	)			(207,626	)			–				(13,334,138	)
Balance as of June 30, 2023		$	31,125,412			$	2,925,713			$	3,182			$	34,054,307
Net change in unrealized appreciation/(depreciation) included in the Statements of Operations attributable to Level 3 investments held at June 30, 2023		$	171,587			$	(2,425,449	)		$	–			$	(2,253,862	)

 

(1)	Purchases include all purchases of securities and securities received in corporate actions.

(2)	Sales Proceeds include all sales of securities, maturities, paydowns and securities tendered in corporate actions.

 

Securities were transferred from Level 2 to Level 3 because of a lack of observable market data due to decrease in market activity and information for these securities. Other securities were transferred from Level 3 to Level 2 as observable inputs were available for purposes of valuing those assets.

 

Information about Level 3 fair value measurements as of June 30, 2023:

 

Blackstone Senior Floating Rate Term Fund

Fair Value

Valuation Technique

Unobservable Input(s)

Value/Rate (Weighted Average)

Floating Rate Loan Interests

$

11,421,035

Third Party Vendor Pricing Services

Broker Quotes

N/A

Collateralized Loan Obligation Securities

8,189,197

Third Party Vendor Pricing Services

Broker Quotes

N/A

Common Stock

416,325

Third Party Vendor Pricing Services

Broker Quotes

N/A

Blackstone Long-Short Credit Income Fund

Fair Value

Valuation Technique

Unobservable Input(s)

Value/Rate (Weighted Average)

Floating Rate Loan Interests

$

10,386,473

Third Party Vendor Pricing Services

Broker Quotes

N/A

Collateralized Loan Obligation Securities

10,043,523

Third Party Vendor Pricing Services

Broker Quotes

N/A

Common Stock

570,533

Third Party Vendor Pricing Services

Broker Quotes

N/A

 

Blackstone Strategic Credit 2027 Term Fund

Fair Value

Valuation Technique

Unobservable Input(s)

Value/Rate (Weighted Average)

Floating Rate Loan Interests

$

31,125,412

Third Party Vendor Pricing Services

Broker Quotes

N/A

Common Stock

2,925,713

Third Party Vendor Pricing Services

Broker Quotes

N/A

-

Performance multiple methodology

EBITDA multiple(a)

7.38x

Warrants

3,182

Third Party Vendor Pricing Services

Broker Quotes

N/A

 

84	www.blackstone-credit.com

Blackstone Credit Funds

Notes to Financial Statements

June 30, 2023 (Unaudited)

 

(a)	A change to the unobservable input at the reporting date would result in a significant change to the value of the investment as follows:

 

Unobservable Input	Impact to Value if Input Increases	Impact to Value if Input Decreases
EBITDA Multiple	Increase	Decrease

 

Securities Transactions and Investment Income: Securities transactions are recorded on trade date for financial reporting purposes and amounts payable or receivable for trades not settled at the time of period end are reflected as liabilities and assets, respectively. Interest income is recognized on an accrual basis from the date of settlement. Accretion of discount and amortization of premium, which are included in interest income, are accreted or amortized daily using the accrual basis interest method. Dividend income is recorded on the ex-dividend date. Realized gains and losses from securities transactions and foreign currency transactions, if any, are recorded on the basis of identified cost and stated separately in the Statement of Operations.

 

When the Funds sell a floating rate loan interest, they may pay an agency fee. The Funds earn facility and other fees on floating rate loan interests, and facility fees are typically amortized to income over the term of the loan. Consent and amendment fees are also recorded to income as earned.

 

Federal Income Taxes: It is the policy of the Funds to continue to qualify as regulated investment companies by complying with the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended. For the period ended June 30, 2023, Management has analyzed the tax positions taken by the Funds and has concluded that no income tax provisions are required.

 

Income distributions and capital gain distributions, if any, are determined in accordance with income tax regulations, which may differ from GAAP. These differences are primarily due to differing treatments of income and gains on various investment securities held by the Funds, including differences in the timing of recognition or income, losses, and/or gains, and differing characterization of distributions made by the Funds as a whole.

 

As of and during the period ended June 30, 2023, the Funds did not incur a liability arising from any unrecognized tax benefits. The Funds file U.S. federal, state, and local tax returns as required. The Funds’ tax returns are subject to examination by the relevant tax authorities until expiration of the applicable statute of limitations, which is generally three years after the filing of the tax return for federal purposes and four years after the filing of most state and local returns for state and local purposes. Tax returns for any open years have not required and as such not incorporated any uncertain tax positions that result in a provision for income taxes.

 

Distributions to Shareholders: The Funds make monthly cash distributions of all or a portion of their net investment income to common shareholders. The Funds will distribute to common shareholders at least annually all or substantially all of their net investment income determined after the payment of dividends and/or interest, if any, owed with respect to any outstanding preferred shares and/or borrowings. The Funds intend to pay any capital gain distributions at least annually, if any. The Funds utilize a "dynamic" distribution strategy that is based on the net investment income earned by the Funds. The Funds declare a set of monthly distributions each quarter in amounts closely tied to the Funds' recent average monthly net investment income. As a result, the monthly distribution amounts for the Funds typically vary when compared quarter over quarter. A distribution may be treated as paid by December 31 of any calendar year if such a distribution is declared by the Fund in October, November or December with a record date in such a month and is paid by the Fund prior to January 31 of the following calendar year. Such distributions may be taxable to shareholders in the calendar year in which the distributions are declared, rather than taxable to shareholders in the calendar year in which the distributions are paid.

 

Offering Costs: Offering costs incurred in connection with BSL’s shelf registration statement, through June 30, 2023, are approximately $356,023. The Statement of Assets and Liabilities reflects the current offering costs of $356,053 as deferred offering costs. These offering costs will be charged to paid-in-capital upon the issuance of shares. Any remaining deferred offering costs at the end of the shelf offering period will be charged to expense and costs incurred to keep the shelf registration current are expensed as incurred.

 

Offering costs incurred in connection with BGX's shelf registration statement, through June 30, 2023, are approximately $446,650. The Statement of Assets and Liabilities reflects the current offering costs of $446,650 as deferred offering costs. These will be charged to paid-in-capital upon the issuance of shares. Any remaining deferred offering costs at the end of the shelf offering period will be charged to expense and costs incurred to keep the shelf registration current are expensed as incurred.

 

The estimates and assumptions underlying the Funds' financial statements are based on the information available as of June 30, 2023. The estimates and assumptions include judgments about financial market and economic conditions which have changed, and may continue to change, over time.

 

Semi-Annual Report | June 30, 2023

85

Blackstone Credit Funds

Notes to Financial Statements

June 30, 2023 (Unaudited)

 

NOTE 3. MANAGEMENT FEES, ADMINISTRATION FEES, AND OTHER AGREEMENTS

 

Management Fees: The Adviser, a wholly-owned subsidiary of Blackstone Alternative Credit Advisors LP (collectively with its affiliates in the credit- focused business of Blackstone Inc., “Blackstone Credit”), is a registered investment adviser and is responsible for the day-to-day management of, and providing administrative and compliance oversight services to, the Funds.

 

For BSL, the Adviser receives a monthly fee at the annual rate of 0.90% of the average daily value of BSL’s total assets (including any assets attributable to any leverage used) minus the sum of BSL’s accrued liabilities (other than Fund liabilities incurred for any leverage) (“BSL Managed Assets”). Effective November 17, 2017, the Adviser agreed to reduce a portion of the previous management fee (“Reduced Management Fee”), from an annual rate of 1.00% to 0.90% of BSL’s Managed Assets, in connection with the extension of BSL’s term through May 31, 2022. Due to the approval of the extension of the BSL term to May 31, 2027, the Reduced Management Fee will continue through BSL’s dissolution date. If BSL’s term is extended again by shareholders beyond May 31, 2027, the Reduced Management Fee will be assessed at that time. For BGX, the Adviser receives a monthly fee at the annual rate of 1.20% of the average daily value of BGX’s net assets (total assets of BGX minus liabilities, including accrued expenses or dividends). For BGB, the Adviser receives a monthly fee at the annual rate of 1.00% of the average daily value of BGB’s total assets (including any assets attributable to any leverage used) minus the sum of BGB's accrued liabilities (other than Fund liabilities incurred for any leverage) ("BGB Managed Assets").

 

Trustee Fees: Effective January 1, 2022, the Funds and Blackstone Floating Rate Enhanced Income Fund (the “Blackstone Credit Closed-End Funds”) agreed to pay a retainer fee of $155,000 per annum to each Trustee who is not a director, officer, employee, or affiliate of Blackstone Credit or ALPS Fund Services, Inc. (“ALPS”). The Chairman of the Audit Committee and the Chairman of the Nominating and Governance Committee also agreed to receive a retainer fee of $12,000 per annum and the Lead Independent Trustee agreed to receive a retainer fee of $16,000 per annum from the Blackstone Credit Closed-End Funds.

 

The Board implemented a Trustee Emeritus program (the “Program”) in November 2021. A Trustee Emeritus appointed under the Program will receive compensation equal to 10% of his or her retainer for serving as a Trustee as of the date on which the Board appoints such person as Trustee Emeritus. The term of service of a Trustee Emeritus expires twelve months from the date of the Trustee’s retirement from the Board.

 

Fund Accounting and Administration Fees: ALPS serves as administrator to the Funds. Under the administration agreement, ALPS is responsible for calculating the NAV of the common shares and generally managing the administrative affairs of the Funds. For BSL and BGB, ALPS receives a monthly fee based on the average daily value of each fund’s respective Managed Assets, plus out-of-pocket expenses. For BGX, ALPS receives a monthly fee based on the average daily value of the fund’s net assets, plus out-of-pocket expenses. ALPS is not considered an affiliate of the Funds, as defined under the 1940 Act.

 

Custodian and Transfer Agent: The Bank of New York Mellon serves as the Funds’ custodian. Computershare Inc. (“Computershare”) serves as the Funds’ transfer agent. The Bank of New York Mellon and Computershare are not considered affiliates of the Funds as defined under the 1940 Act.

 

NOTE 4. SECURITIES TRANSACTIONS

 

Investment transactions for the period ended June 30, 2023, excluding temporary short-term investments, were as follows:

 

Fund		Cost of Investments Purchased				Proceeds from Investments Sold
Blackstone Senior Floating Rate 2027 Term Fund		$	82,667,303			$	81,119,141
Blackstone Long-Short Credit Income Fund			120,778,520				119,723,071
Blackstone Strategic Credit 2027 Term Fund			409,219,270				400,239,889

 

NOTE 5. RELATED PARTY TRANSACTIONS

 

The Adviser is a related party of the Funds. Fee arrangements with related parties are disclosed in Note 3 and amounts incurred are disclosed in the Statement of Operations.

 

During the period ended June 30, 2023, none of the Funds engaged in cross trades with an affiliate pursuant to Rule 17a-7 under the 1940 Act.

 

Blackstone Holdings Finance Co. L.L.C ("FINCO"), an affiliate of the Adviser, pays expenses on behalf of the Funds from time to time. The Funds reimburse FINCO for such expenses paid on behalf of the Funds. FINCO does not charge any fees for providing such services. The amounts of $30,586, $27,316 and $70,059 for BSL, BGX, and BGB, respectively, as of the period ended June 30, 2023 is recorded as other payables and accrued expenses on the Funds' Statements of Assets and Liabilities.

 

86	www.blackstone-credit.com

Blackstone Credit Funds

Notes to Financial Statements

June 30, 2023 (Unaudited)

 

Blackstone Securities Partners L.P. (“BSP”), an affiliate of BSL and of the Adviser, serves as the Distributor for BSL’s ATM offering of common shares of beneficial interest (“BSL Common Shares”) under a distribution agreement with BSL (the “Distribution Agreement”). Pursuant to the Distribution Agreement, BSL compensates BSP with respect to the sale of BSL Common Shares in the ATM offering at a commission rate of 1.00% of the gross proceeds of the sale of BSL Common Shares. Additionally, BSP entered into a sub-placement agent agreement with UBS Securities LLC (the “Sub-Placement Agent”) and of the commission rate of 1.00%, BSP will compensate the Sub-Placement Agent at a rate of 0.80% of the gross proceeds of the sale of BSL's Common Shares sold through the Sub-Placement Agent. For the period ended June 30, 2023, BSL did not sell any shares, pursuant to this shelf registration. As a result, there were $0 of gross proceeds rebated by BSP.

 

NOTE 6. SHARE REPURCHASE PROGRAM

 

In connection with the approval of the Term Extension by shareholders on February 19, 2020, BSL implemented a share repurchase program (the “Share Repurchase Program”) wherein the Fund agreed to repurchase up to 15% of outstanding shares in the open market under certain circumstances. Under the Share Repurchase Program, if shares of BSL traded at an average discount to BSL’s NAV per share of greater than 10% over any rolling forty (40) business day period, BSL agreed to buy back up to 15% of its outstanding shares through the open market (the “Repurchase Quantity”), subject to reasonable volume limitations and a maximum price of 90% of the Fund’s NAV per share (the "Repurchase Price Ceiling"). If the Share Repurchase Program were triggered but an amount of shares less than the Repurchase Quantity were repurchased subject to the Repurchase Price Ceiling, the Fund agreed to continue the Share Repurchase Program the next time, if applicable, shares could be repurchased at a price below the Repurchase Price Ceiling. Such repurchase could continue throughout the remaining life of the Fund, until shares repurchased equaled the Repurchase Quantity.

 

BSL's Share Repurchase Program was triggered on April 22, 2020. For the period ended June 30, 2023, BSL repurchased 0 shares of its common stock pursuant to the Share Repurchase Program because as of December 14, 2022, 100% of the total shares authorized for repurchase under BSL’s Share Repurchase Program have been repurchased. For the year ended December 31, 2022, BSL repurchased 527,643 shares of its common stock on the open market at a total cost, inclusive of commissions ($0.02 per share), of $6,727,909 at a per-share weighted average discount to NAV of 10.14%.

 

NOTE 7. CAPITAL

 

The Funds have authorized an unlimited number of $0.001 par value common shares.

 

Transactions in shares were as follows:

 

Blackstone Senior Floating Rate 2027 Term Fund		For the Six Months Ended June 30, 2023 (Unaudited)				For the Year Ended December 31, 2022
Common shares outstanding - beginning of period			13,008,542				13,530,940
Common shares issued in connection with initial public offering			–				2,004
Common shares issued as reinvestment of dividends			–				3,241
Less shares repurchased			–				(527,643	)
Common shares outstanding - end of period			13,008,542				13,008,542

 

Blackstone Long-Short Credit Income Fund		For the Six Months Ended June 30, 2023 (Unaudited)				For the Year Ended December 31, 2022
Common shares outstanding - beginning of period			12,708,275				12,708,275
Common shares issued as reinvestment of dividends			–				–
Common shares outstanding - end of period			12,708,275				12,708,275

 

Blackstone Strategic Credit 2027 Term Fund		For the Six Months Ended June 30, 2023 (Unaudited)				For the Year Ended December 31, 2022
Common shares outstanding - beginning of period			44,664,382				44,664,382
Common shares issued as reinvestment of dividends			–				–
Common shares outstanding - end of period			44,664,382				44,664,382

 

Semi-Annual Report | June 30, 2023

87

Blackstone Credit Funds

Notes to Financial Statements

June 30, 2023 (Unaudited)

 

NOTE 8. LOANS AND OTHER INVESTMENTS

 

BSL defines “Senior Loans” as first lien senior secured, floating rate loans that are made to U.S. and, to a limited extent, non-U.S. corporations, partnerships and other business entities (“Borrowers”), which operate in various industries and geographical regions. BGX includes first and second lien secured, floating rate loans in its definition of “Secured Loans.” Under normal market conditions, at least 80% of BSL’s Managed Assets (defined below) will be invested in Senior Loans and 70% of BGX’s Managed Assets (defined below) will be invested in Secured Loans. BSL defines "Managed Assets" as total assets (including any assets attributable to any leverage used) minus the sum of BSL's accrued liabilities (other than liabilities related to the principal amount of leverage). BGX defines its managed assets as total assets (including any assets attributable to any leverage used) minus the sum of BGX’s accrued liabilities (other than liabilities related to the principal amount of leverage). BGB defines “Managed Assets” as total assets (including "effective leverage” (meaning leverage incurred through total return swaps, securities lending arrangements, credit default swaps or other derivative transactions) and “traditional leverage” (meaning borrowing money or issuing preferred shares (but will not issue auction rate preferred shares), debt securities or commercial paper, or enter into similar transactions)). Under normal market conditions, at least 80% of BGB's Managed Assets will be invested in credit investments comprised of corporate fixed income instruments and other investments (including derivatives) with similar economic characteristics. At June 30, 2023, 91.94% of BSL’s Managed Assets were held in Senior Loans, 81.97% of BGX's Managed Assets were held in Secured Loans, and 100.79% of BGB’s Managed Assets were held in corporate fixed income instruments including Senior Secured Loans.

 

Senior secured loans hold a senior position in the capital structure of a business entity, are secured with specific collateral and have a claim on the assets and/or stock of the Borrower that is senior to that held by unsecured creditors, subordinated debt holders and stockholders of the Borrower.

 

Loans often require prepayments from Borrowers’ excess cash flows or permit the Borrowers to repay at their election. The degree to which Borrowers repay, whether as a contractual requirement or at their election, cannot be predicted with accuracy. As a result, the actual remaining maturity may be substantially less than the stated maturities shown. However, floating rate loans typically have an expected average life of two to four years. Floating rate loans typically have rates of interest which are re-determined periodically, either daily, monthly, quarterly or semi-annually by reference to a floating base lending rate, primarily the London Interbank Offered Rate (“LIBOR”) and the Secured Overnight Financing Rate (“SOFR”) (subject to the LIBOR transition as described below and in Principal Risks—LIBOR Risk”), plus a premium or credit spread.

 

The United Kingdom's Financial Conduct Authority announced a phase out of LIBOR in 2017. Although many LIBOR rates ceased to be published or were no longer representative of the underlying market they sought to measure after December 31, 2021, a selection of widely used U.S. dollar LIBOR rates were published through June 30, 2023 in order to assist with the transition. Further, on March 15, 2022, the Consolidated Appropriations Act of 2022, which includes the Adjustable Interest Rate (LIBOR) Act, was signed into law in the United States. This legislation establishes a uniform benchmark replacement process for financial contracts that mature after June 30, 2023 that do not contain clearly defined or practicable fallback provisions. The U.S. Federal Reserve System, in conjunction with the Alternative Reference Rates Committee, a steering committee comprised of large U.S. financial institutions, has begun publishing SOFR, which is their preferred alternative rate for U.S. dollar LIBOR, and which is a new index calculated by short-term repurchase agreements, backed by Treasury securities. Given the inherent differences between LIBOR and SOFR, or any other alternative benchmark rate that may be established, there remains uncertainty regarding the continued transition away from LIBOR and the nature of any replacement rate. Proposals for alternative reference rates for other currencies have also been announced or have already begun publication. Markets are in the process of developing in response to these new rates. Although financial regulators and industry working groups have suggested alternative reference rates, such as the European Interbank Offer Rate, the Sterling Overnight Interbank Average Rate and SOFR, there has been no global consensus as to an alternative rate. There could be significant operational challenges for the continued transition away from LIBOR including, but not limited to, amending loan agreements with borrowers on investments that may have not been modified with fallback language and adding effective fallback language to new agreements in the event that LIBOR is discontinued before maturity. Beyond these challenges, we anticipate there may be additional risks to our current processes and information systems that will need to be identified and evaluated by us. The Funds and our portfolio companies may need to amend or restructure our existing LIBOR-based debt instruments and any related hedging arrangements, depending on the applicable LIBOR tenor. Such amendments and restructurings may be difficult, costly and time consuming. The Funds may invest, or remain invested, in floating rate loans and investment securities whose interest rates are indexed to LIBOR. Uncertainty as to the nature of alternative reference rates may result in a sudden or prolonged increase or decrease in the value of LIBOR-based loans and securities, including those of other issuers that the Funds currently hold or may in the future hold. The transition away from LIBOR to a successor rate may involve, among other things, (i) increased volatility or illiquidity in markets for instruments that rely on LIBOR, (ii) a reduction in the value of certain LIBOR-based instruments held by the Funds, or (iii) reduced effectiveness of related Fund transactions, such as hedging, any of which could potentially adversely affect the Funds' performance. Due to the uncertainty of the replacement for LIBOR, the potential effects on the Funds cannot yet be determined.

 

Loans are subject to the risk of payment defaults of scheduled interest or principal. Such non-payment could result in a reduction of income, a reduction in the value of the investment and a potential decrease in the NAV of any of the Funds. Risk of loss of income is generally higher for subordinated unsecured loans or debt, which are not backed by a security interest in any specific collateral. There can be no assurance that the liquidation of any collateral securing a Loan would satisfy the Borrower’s obligation to the applicable Fund in the event of non-payment of scheduled interest or principal payments, or that such collateral could be readily liquidated.

 

88	www.blackstone-credit.com

Blackstone Credit Funds

Notes to Financial Statements

June 30, 2023 (Unaudited)

 

Second lien loans generally are subject to similar risks as those associated with investments in first lien loans except that such loans are subordinated in payment and/or lower in lien priority to first lien holders. In the event of default on a second lien loan, the first priority lien holder has first claim to the underlying collateral of the loan. Second lien loans are subject to the additional risk that the cash flow of the Borrower and property securing the loan or debt, if any, may be insufficient to meet scheduled payments after giving effect to the senior obligations of the Borrower. At June 30, 2023, BSL, BGX and BGB had invested $ 9,972,354, $ 9,915,038, and $ 35,686,188, respectively, in second lien secured loans. Second lien secured loans are considered Secured Loans for BGX and Senior Secured Loans for BGB, but are not considered Senior Loans for BSL.

 

Loans can be rated below investment grade or may also be unrated. As a result, the risks associated with Loans may be similar to the risks of other below investment grade securities, although they are senior and secured in contrast to other below investment grade securities, which are often subordinated or unsecured. The Funds typically invest in Loans rated below investment grade, which are considered speculative because of the credit risk of the Borrowers. Such companies are more likely than investment grade issuers to default on their payments of interest and principal owed to the Funds, and such defaults could reduce NAV and income distributions. The amount of public information available with respect to below investment grade loans will generally be less extensive than that available for registered or exchange-listed securities. In evaluating the creditworthiness of Borrowers, the Adviser will consider, and may rely in part on, analyses performed by others. The Adviser’s established best execution procedures and guidelines require trades to be placed for execution only with broker-dealer counterparties approved by the Counterparty Committee of the Adviser. The factors considered by the Counterparty Committee when selecting and approving brokers and dealers include, but are not limited to: (i) quality, accuracy, and timeliness of execution, (ii) review of the reputation, financial strength and stability of the financial institution, (iii) willingness and ability of the counterparty to commit capital, (iv) ongoing reliability and (v) access to underwritten offerings and secondary markets. The Counterparty Committee regularly reviews each broker-dealer counterparty based on the foregoing factors.

 

The Funds may acquire Loans through assignments or participations. The Funds typically acquire these Loans through assignment, and if a Fund acquires a Loan through participation, it will seek to elevate a participation interest into an assignment as soon as practicably possible. The purchaser of an assignment typically succeeds to all the rights and obligations of the assigning institution and becomes a lender under the credit agreement with respect to the debt obligation. A participation typically results in a contractual relationship only with the institution participating out the interest, not with the Borrower. Sellers of participations typically include banks, broker-dealers, other financial institutions and lending institutions. The Adviser has adopted best execution procedures and guidelines which seek to mitigate credit and counterparty risk in the atypical situation when the Funds must acquire a Loan through a participation.

 

BSL and BGX have invested in CLO securities. A CLO is a financing company (generally called a Special Purpose Vehicle (“SPV”)), created to reapportion the risk and return characteristics of a pool of assets. While the assets underlying a CLO are typically Secured Loans, the assets may also include (i) unsecured loans, (ii) debt securities that are rated below investment grade, and (iii) equity securities incidental to investments in Secured Loans. When investing in CLOs, each fund will not invest in equity tranches, which are the lowest tranche. However, each fund may invest in lower tranches of CLO debt securities, which typically experience a lower recovery, greater risk of loss or deferral or non-payment of interest than more senior debt tranches of the CLO. In addition, each fund intends to invest in CLOs consisting primarily of individual Secured Loans of Borrowers and not repackaged CLO obligations from other high risk pools. The underlying Secured Loans purchased by CLOs are generally performing at the time of purchase but may become non-performing, distressed or defaulted. CLOs with underlying assets of non-performing, distressed or defaulted loans are not contemplated to comprise a significant portion of each fund’s investments in CLOs. The key feature of the CLO structure is the prioritization of the cash flows from a pool of debt securities among the several classes of the CLO. The SPV is a company founded solely for the purpose of securitizing payment claims arising out of this diversified asset pool. On this basis, marketable securities are issued by the SPV which, due to the diversification of the underlying risk, generally represent a lower level of risk than the original assets. The redemption of the securities issued by the SPV typically takes place on a date earlier than legal maturity from refinancing of the senior debt tranches.

 

Semi-Annual Report | June 30, 2023

89

Blackstone Credit Funds

Notes to Financial Statements

June 30, 2023 (Unaudited)

 

NOTE 9. GENERAL COMMITMENTS AND CONTINGENCIES

 

As of June 30, 2023, the Funds had unfunded loan commitments outstanding, which could be extended at the option of the borrower, as detailed below:

 

		Blackstone Senior Floating Rate 2027 Term Fund								Blackstone Long-Short Credit Income Fund								Blackstone Strategic Credit 2027 Term Fund
Borrower		Par Value				Fair Value				Par Value				Fair Value				Par Value				Fair Value
VT Topco, Inc., First Lien 2021 Delayed Draw Term Loan		$	425			$	420			$	1,158			$	1,145			$	70			$	69
AthenaHealth Group, Inc. Delayed Draw, First Lien Term Loan			175,073				168,946				156,677				151,193				520,182				501,976
Pediatric Associates Holding Co. LLC, First Lien Term Loan			28,443				27,896				18,954				18,589				62,846				61,636
Total		$	203,941			$	197,262			$	176,789			$	170,927			$	583,098			$	563,681

 

Unfunded loan commitments are marked to market on the relevant day of the valuation in accordance with the Funds’ valuation policies. Any related unrealized appreciation/(depreciation) on unfunded loan commitments is recorded on the Statements of Assets and Liabilities and the Statements of Operations. For the period ended June 30, 2023, BSL, BGX, and BGB recorded a net increase/(decrease) in unrealized appreciation on unfunded loan commitments totaling $39,790, $21,211 and $(282,909), respectively.

 

NOTE 10. CREDIT DEFAULT SWAPS

 

BGX may enter into over-the-counter (“OTC”) and/or centrally cleared credit default swap contracts and may also use credit default swaps to express a negative credit view on a loan or other investment. If BGX purchases protection under a credit default swap and no credit event occurs on the reference obligation, BGX will have made a series of periodic payments and recover nothing of monetary value. However, if a credit event occurs on the reference obligation, BGX (if the buyer of protection) will receive the full notional value of the reference obligation through a cash payment in exchange for the reference obligation or alternatively, a cash payment representing the difference between the expected recovery rate and the full notional value.

 

The periodic swap payments received or made by BGX are recorded in the Statements of Operations as realized gains or losses, respectively. Any upfront fees paid are recorded as assets and any upfront fees received are recorded as liabilities and amortized over the term of the swap. Swaps are marked-to-market daily and changes in value, including the accrual of periodic amounts of interest, are recorded as unrealized appreciation (depreciation) and shown on BGX’s Statement of Operations. When the swap is terminated, BGX will record a realized gain or loss equal to the difference between the proceeds from (or cost of) the closing transaction and BGX’s basis in the contract, if any. Generally, the basis of the contracts is the unamortized premium received or paid.

 

International Swaps and Derivatives Association, Inc. Master Agreements (“ISDA Master Agreements”) govern OTC financial derivative transactions entered into by a Fund and those counterparties. The ISDA Master Agreements maintain provisions for general obligations, representations, agreements, collateral and events of default or termination. Events of termination include conditions that may entitle counterparties to elect to terminate early and cause settlement of all outstanding transactions under the applicable ISDA Master Agreement. Any election to terminate early could be material to the financial statements.

 

Swap transactions involve, to varying degrees, elements of interest rate, credit and market risk in excess of the amounts recognized in the Statements of Assets and Liabilities. Such risks involve the possibility that there will be no liquid market for these agreements, that the counterparty to the agreements may default on its obligation to perform or disagree as to the meaning of the contractual terms in the agreements, and that there may be unfavorable changes in interest rates and/or market values associated with these transactions. The Adviser selects only those counterparties that it believes are credit-worthy.

 

During the period ended June 30, 2023, BGX did not enter into any credit default swaps.

 

NOTE 11. LEVERAGE

 

On July 27, 2016, BGX and BGB issued 7-year Mandatory Redeemable Preferred Shares (the “Series A MRPS”). BGX issued 20,000 Series A MRPS with a total liquidation value of $20,000,000 and BGB issued 45,000 Series A MRPS with a total liquidation value of $45,000,000. As of February 11, 2021, the Series A MRPS of BGB and BGX were rated “AA” by Fitch Ratings. On February 12, 2021, Fitch Ratings downgraded the ratings on both BGB’s Series A MRPS and BGX’s Series A MRPS to “A”. The downgrades were driven by changes to Fitch Ratings’ rating criteria for closed-end funds, rather than by any fundamental changes to the Funds’ credit profiles. The dividend rate on the Funds’ Series A MRPS will increase if the credit rating for the relevant Fund is downgraded below “A” by Fitch Ratings or the equivalent rating of other nationally recognized statistical ratings organizations. BGB and BGX used the proceeds of the offerings to make additional investments for their portfolios. The final redemption date of the Series A MRPS is July 27, 2023 (see Note 14. Subsequent Events). BGB and BGX make quarterly dividend payments on the Series A MRPS at an annual dividend rate of 3.61%. Due to the terms of the Series A MRPS, face value approximates fair value at June 30, 2023. This fair value is based on Level 2 inputs under the three-tier fair valuation hierarchy (see Note 2).

 

90	www.blackstone-credit.com

Blackstone Credit Funds

Notes to Financial Statements

June 30, 2023 (Unaudited)

 

In connection with BGB and BGX’s issuance of Series A MRPS, certain costs were incurred by BGB and BGX and have been recorded net against the outstanding liability. These costs are being amortized over the period beginning July 27, 2016 (day of issuance) through July 27, 2023, the final redemption date. The net deferred financing costs as of June 30, 2023 are shown on BGB’s and BGX’s Statements of Assets and Liabilities. The amount of expense amortized during the period ended June 30, 2023 is shown on BGB’s and BGX’s Statements of Operations under amortization of deferred financing costs.

 

Except for matters which do not require the vote of holders of Series A MRPS under the 1940 Act and except as otherwise provided in BGB’s and BGX’s Declarations of Trust, Bylaws, or the applicable Securities Purchase Agreements or as otherwise required by applicable law, each holder of Series A MRPS shall be entitled to one vote for each Series A MRPS held on each matter submitted to a vote of shareholders of the Fund, and the holders of outstanding preferred shares and common shares shall vote together as a single class on all matters submitted to shareholders; provided, however, that the holders of outstanding preferred shares shall be entitled, as a class, to the exclusion of the holders of shares of all other classes of beneficial interest of the Fund, to elect two Trustees of the applicable Fund at all times.

 

Each Fund has entered into a separate Credit Agreement (each, an “Agreement”) with a bank to borrow money pursuant to a two-year revolving line of credit (“Leverage Facility”) for BSL, BGX and BGB. BSL entered into an agreement dated October 8, 2014, as amended on October 7, 2015, October 5, 2016, and October 4, 2017, and as further amended and restated on June 20, 2018 and as further amended and restated on October 4, 2019 and as amended on October 2, 2020, October 1, 2021, November 29, 2021 and September 30, 2022 to borrow up to a limit of $142 million, with $48 million for tranche A loans ("BSL Tranche A Loans") and $94 million for tranche B loans ("BSL Tranche B Loans"). BGX entered into an agreement dated July 29, 2014, as amended on January 26, 2015, July 28, 2015, July 26, 2016, July 25, 2017, January 8, 2018 and February 23, 2018 and as further amended and restated on June 20, 2018, and as further amended and restated on July 25, 2019 and as amended on July 23, 2020, July 26, 2021, November 29, 2021, and July 21, 2022, to borrow up to a limit of $122 million, with $41 million for tranche A loans (“BGX Tranche A Loans”) and $81 million for tranche B loans (“BGX Tranche B Loans”). BGB entered into an agreement dated December 21, 2012, as amended on December 20, 2013, December 19, 2014, December 18, 2015, July 26, 2016, December 16, 2016, December 20, 2017, as amended and restated on June 20, 2018, as amended on December 4, 2018 and as further amended and restated on January 11, 2019, as further amended on January 10, 2020, January 8, 2021, September 30, 2021, December 31, 2021 and December 30, 2022 to borrow up to a limit of $415 million, with $145 million for tranche A loans (“BGB Tranche A Loans” and collectively with BGX Tranche A Loans and BSL Tranche A Loans, the “Tranche A Loans”) and $270 million for tranche B loans (“BGB Tranche B Loans” and collectively with BGX Tranche B Loans and BSL Tranche B Loans, the “Tranche B Loans”). Borrowings under each Agreement are secured by the assets of each Fund.

 

Interest on BSL's Leverage Facility is charged at a rate of 0.90% above adjusted term SOFR with respect to BSL Tranche A Loans, 1.20% above adjusted term SOFR for one (1) month interest period BSL Tranche B Loans and 1.05% above adjusted term SOFR for three (3) month interest period BSL Tranche B Loans, with adjusted term SOFR measured for the period commencing on the date of the making of such Loan at adjusted term SOFR (or the last date upon which any other Loan was converted to, or continued as, such Loan at adjusted term SOFR) and ending on the numerically corresponding day in the calendar month that is one (1), or three (3) months thereafter, as the Fund may elect, or such other periods as the lender may agree in its sole and absolute discretion.

 

Interest on BGB’s Leverage Facility is charged at a rate of 1.00% above adjusted term SOFR with respect to BGB Tranche A Loans, 1.30% above adjusted term SOFR for one (1) month interest period BGB Tranche B Loans and 1.20% above adjusted term SOFR for three (3) month interest period BGB Tranche B Loans, with adjusted term SOFR measured for the period commencing on the date of the making of such Loan at adjusted term SOFR (or the last date upon which any other Loan was converted to, or continued as, such Loan at adjusted term SOFR) and ending on the numerically corresponding day in the calendar month that is one (1) or three (3) months thereafter, as the Fund may elect, or such other periods as the lender may agree in its sole and absolute discretion.

 

Interest on BGX's Leverage Facility is charged at a rate of 0.85% above adjusted term SOFR with respect to BGX Tranche A Loans, 1.15% above adjusted term SOFR for one (1) month interest period BGX Tranche B Loans and 1.00% above adjusted term SOFR for three (3) month interest period BGX Tranche B Loans, with adjusted term SOFR measured for the period commencing on the date of the making of such Loan at adjusted term SOFR (or the last date upon which any other Loan was converted to, or continued as, such Loan to at adjusted term SOFR) and ending on the numerically corresponding day in the calendar month that is one (1) or three (3) months thereafter, as the Fund may elect, or such other periods as the lender may agree in its sole and absolute discretion.

  

Semi-Annual Report | June 30, 2023

91

Blackstone Credit Funds

Notes to Financial Statements

June 30, 2023 (Unaudited)

 

Under the terms of the applicable Agreement, each Fund must pay a commitment fee on any undrawn amounts. The commitment fee payable in BSL, BGB and BGX, for each of Tranche A and Tranche B Loans is 0.15% on the undrawn amounts when drawn amounts exceed 75% of the borrowing limit and 0.25% on the undrawn amounts at any other time. Interest and fees are generally payable at the end of the respective interest period. Each Fund may elect to extend the applicable Agreement for a further period with the consent of the lending bank. At June 30, 2023, BSL, BGX, and BGB had borrowings outstanding under their respective Leverage Facility of $81,000,000, $79,800,000, and $260,900,000, at an interest rate of 6.19%, 6.15%, and 6.31%, respectively. Due to the short term nature of each Agreement, face value approximates fair value at June 30, 2023. This fair value is based on Level 2 inputs under the three-tier fair valuation hierarchy (see Note 2). For the period ended June 30, 2023, the average borrowings under BSL’s, BGX’s and BGB’s Leverage Facility and the weighted average interest rates were $75,226,519 and 5.79%, $79,949,171 and 5.78%, and $256,717,680 and 5.93%, respectively. During the period ended June 30, 2023, BSL, BGX and BGB incurred $84,256, $53,361, and $198,963, respectively, for commitment fees on undrawn amounts, which is included under Interest on leverage facility on the Statements of Operations.

 

Under each Agreement and each governing document of the Series A MRPS, each Fund has agreed to certain covenants and additional investment limitations while the leverage is outstanding. Each Fund agreed to maintain asset coverage of three times over borrowings and BGX and BGB have agreed to maintain 225% asset coverage over borrowings plus Series A MRPS. Compliance with the investment restrictions and calculations are performed by the Funds’ custodian, The Bank of New York Mellon.

 

The use of borrowings to leverage the common shares of the Funds can create risks. Changes in the value of the Funds’ portfolios, including securities bought with the proceeds of leverage, are borne entirely by the holders of common shares of the Funds. All costs and expenses related to any form of leverage used by the Funds are borne entirely by common shareholders. If there is a net decrease or increase in the value of the Funds’ investment portfolios, the leverage may decrease or increase, as the case may be, the NAV per common share to a greater extent than if the Funds did not utilize leverage. During periods when BSL and BGB are using leverage, the fees paid to the Adviser for advisory services and to ALPS for administrative services are higher than if BSL and BGB did not use leverage because the fees paid are calculated on the basis of BSL and BGB’s Managed Assets, which include the assets purchased through leverage. As of June 30, 2023, BSL’s, BGX’s, and BGB’s leverage represented 30.26%, 30.25%, and 30.37% of each Fund’s Managed Assets, respectively. The leverage amounts in BGX and BGB include 7.58% and 5.24% of Managed Assets attributable to the Series A MRPS, respectively.

 

NOTE 12. INCOME TAX

 

Ordinary income, which as determined on a tax basis includes net short-term capital gains, if any, is allocated to common stockholders after the consideration of any payments due on outstanding term preferred shares. To the extent that the amount distributed to common stockholders exceeds the amount of available ordinary income these distributions may be treated as a return of capital on a tax basis. Additionally, to the extent that the amount distributed on any outstanding term preferred shares exceeds the amount of available ordinary income, these distributions may also be treated as a return of capital on a tax basis.

 

Amounts paid from net long-term capital gains of the Funds, if any, will be designated as such by the Funds and are determined after the consideration of any payments due on outstanding preferred shares.

 

The Funds may make certain adjustments to the classification of net assets as a result of significant permanent book-to-tax differences, which include differences in the book and tax basis of certain assets and liabilities, and non-deductible federal taxes or losses, among other items. These differences may be charged or credited to paid-in capital and distributable earnings as a result. For the year ended December 31, 2022 permanent differences were as follows:

 

Fund		Increase/(Decrease) Paid-in capital				Increase/(Decrease) Total Distributable Earnings
Blackstone Senior Floating Rate 2027 Term Fund		$	–			$	–
Blackstone Long-Short Credit Income Fund		$	(44,076	)		$	44,076
Blackstone Strategic Credit 2027 Term Fund		$	–			$	–

 

92	www.blackstone-credit.com

Blackstone Credit Funds

Notes to Financial Statements

June 30, 2023 (Unaudited)

 

The tax character of distributions paid by the Funds during the fiscal year ended December 31, 2022 was as follows:

 

2022		Blackstone Senior Floating Rate 2027 Term Fund				Blackstone Long-Short Credit Income Fund				Blackstone Strategic Credit 2027 Term Fund
Distributions Paid From:
Ordinary Income		$	11,464,793			$	11,956,115	(a)		$	36,373,389	(a)
Total		$	11,464,793			$	11,956,115			$	36,373,389

 

(a)	Distributions paid include common shares and mandatory redeemable preferred shares.

 

Under the Regulated Investment Company Modernization Act of 2010, net capital losses recognized by the Fund may get carried forward indefinitely, and retain their character as short-term and/or long-term losses. Any such losses will be deemed to arise on the first day of the next taxable year. Losses for the year ended December 31, 2022, and as such are deemed to arise on the first day of the year ended December 31, 2023, were as follows:

 

Fund		Short Term				Long Term
Blackstone Senior Floating Rate 2027 Term Fund		$	3,936,526			$	52,520,668
Blackstone Long-Short Credit Income Fund		$	6,453,719			$	52,091,964
Blackstone Strategic Credit 2027 Term Fund		$	19,870,187			$	214,249,232

 

At December 31, 2022, the components of distributable earnings on a tax basis for the Funds were as follows:

 

		Blackstone Senior Floating Rate 2027 Term Fund				Blackstone Long-Short Credit Income Fund				Blackstone Strategic Credit 2027 Term Fund
Undistributed ordinary income		$	1,209,512			$	1,050,776			$	3,559,839
Accumulated capital losses			(56,457,194	)			(58,545,682	)			(234,119,419	)
Unrealized appreciation/(depreciation)			(19,865,923	)			(19,830,568	)			(70,331,873	)
Other Cumulative effect of timing differences			–				–				–
Total		$	(75,113,614	)		$	(77,325,474	)		$	(300,891,453	)

 

The amount of net tax unrealized appreciation/(depreciation) and the tax cost of investment securities at June 30, 2023, calculated using book/tax differences as of the most recently ended fiscal year, December 31, 2022 are as follows:

 

		Blackstone Senior Floating Rate 2027 Term Fund				Blackstone Long-Short Credit Income Fund				Blackstone Strategic Credit 2027 Term Fund
Cost of investments for income tax purposes		$	288,995,208			$	281,694,690			$	920,191,317
Gross appreciation (excess of value over tax cost)		$	1,947,390			$	2,268,253			$	9,659,141
Gross depreciation (excess of tax cost over value)			(12,558,929	)			(12,011,174	)			(44,286,304	)
Net appreciation of foreign currency and derivatives			–				–				6,208
Net unrealized depreciation		$	(10,661,539	)		$	(9,742,921	)		$	(34,620,955	)

 

NOTE 13. RECENT ACCOUNTING PRONOUNCEMENT

 

In March 2020, the FASB issued ASU No. 2020-04, “Reference Rate Reform (Topic 848),” which provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments apply only to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. In January 2021, the FASB issued ASU No. 2021-01, Reference Rate Reform (Topic 848), which expanded the scope of Topic 848 to include derivative instruments impacted by discounting transition. ASU 2020-04 and ASU 2021-01 are effective for all entities through June 30, 2023. The expedients and exceptions provided by the amendments do not apply to contract modifications and hedging relationships entered into or evaluated after June 30, 2023, except for hedging transactions as of June 30, 2023, that an entity has elected certain optional expedients for and that are retained through the end of the hedging relationship. Management is currently evaluating the impact of the adoption of ASU 2020-04 and 2021-01.

 

Semi-Annual Report | June 30, 2023

93

Blackstone Credit Funds

Notes to Financial Statements

June 30, 2023 (Unaudited)

 

In June 2022, FASB issued Accounting Standards Update No. 2022-03, "Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions" ("ASU 2022-03"). ASU 2022-03 clarifies the guidance in ASC 820, related to the measurement of the fair value of an equity security subject to contractual sale restrictions, where it eliminates the ability to apply a discount to the fair value of these securities, and introduces disclosure requirements related to such equity securities. The guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2023, and allows for early adoption. Management is currently evaluating the impact of applying this update.

 

NOTE 14. SUBSEQUENT EVENTS

 

Shareholder Distributions for BSL: On June 12, 2023, a monthly distribution of $0.109 per share was declared to common shareholders, payable on July 31, 2023 to common shareholders of record on July 24, 2023. On June 12, 2023, a monthly distribution of $0.109 per share was declared to common shareholders, payable August 31, 2023 to common shareholders of record on August 24, 2023.

 

Shareholder Distributions for BGX: On June 12, 2023, a monthly distribution of $0.104 per share was declared to common shareholders, payable on July 31, 2023 to common shareholders of record on July 24, 2023. On June 12, 2023, a monthly distribution of $0.104 per share was declared to common shareholders, payable August 31, 2023 to common shareholders of record on August 24, 2023.

 

Shareholder Distributions for BGB: On June 12, 2023, a monthly distribution of $0.094 per share was declared to common shareholders, payable on July 31, 2023 to common shareholders of record on July 24, 2023. On June 12, 2023, a monthly distribution of $0.094 per share was declared to common shareholders, payable August 31, 2023 to common shareholders of record on August 24, 2023.

 

On July 25, 2023, BGB issued 45,000 4-year mandatory redeemable preferred shares (the "Series B MRPS") with a liquidation value of $45,000,000. The Series B MRPS are redeemable on July 25, 2027 and will pay quarterly distributions at an annual dividend rate of 6.60%.

 

On July 27, 2023, each of BGB and BGX redeemed all of their respective outstanding Series A MRPS at liquidation value in the amount of $45,000,000 and $20,000,000, respectively.

 

94	www.blackstone-credit.com

Blackstone Credit Funds

Summary of Dividend Reinvestment Plan

June 30, 2023 (Unaudited)

 

Pursuant to the Funds’ Dividend Reinvestment Plan (the “DRIP”), shareholders whose shares are registered in their own name may ‘‘opt-in’’ to the plan and elect to reinvest all or a portion of their distributions in common shares by providing the required enrollment notice to Computershare, the DRIP administrator. Shareholders whose shares are held in the name of a broker or other nominee may have distributions reinvested only if such a service is provided by the broker or the nominee or if the broker or the nominee permits participation in the DRIP. Shareholders whose shares are held in the name of a broker or other nominee should contact the broker or nominee for details. A shareholder may terminate participation in the DRIP at any time by notifying the DRIP administrator before the record date of the next distribution through the Internet, by telephone or in writing. All distributions to shareholders who do not participate in the DRIP, or have elected to terminate their participation in the DRIP, will be paid by check mailed directly to the record holder by or under the direction of the DRIP administrator when the Board declares a distribution.

 

When the Funds declare a distribution, shareholders who are participants in the applicable DRIP receive the equivalent of the amount of the distribution in common shares. If you participate in the DRIP, the number of common shares of the Funds that you will receive will be determined as follows:

 

(1) If the market price of the common shares plus any brokerage commissions on the payable date (or, if the payable date is not a New York Stock Exchange trading day, the immediately preceding trading day) for determining shareholders eligible to receive the relevant distribution (the ‘‘determination date’’) is equal to or exceeds 98% of the NAV per common share, the Fund will issue new common shares at a price equal to the greater of:

 

(a) 98% of the NAV per share at the close of trading on the New York Stock Exchange on the determination date or

 

(b) 95% of the market price per common share on the determination date.

 

(2) If 98% of the NAV per common share exceeds the market price of the common shares plus any brokerage commissions on the determination date, the DRIP administrator will receive the distribution in cash and will buy common shares in the open market, on the New York Stock Exchange or elsewhere, for your account as soon as practicable commencing on the trading day following the determination date and terminating no later than the earlier of (a) 30 days after the distribution payment date, or (b) the record date for the next succeeding distribution to be made to the shareholders; except when necessary to comply with applicable provisions of the federal securities laws. If during this period: (i) the market price plus any brokerage commissions rises so that it equals or exceeds 98% of the NAV per common share at the close of trading on the New York Stock Exchange on the determination date before the DRIP administrator has completed the open market purchases or (ii) the DRIP administrator is unable to invest the full amount eligible to be reinvested in open market purchases, the DRIP administrator will cease purchasing common shares in the open market and the Fund will issue the remaining common shares at a price per share equal to the greater of (a) 98% of the NAV per share at the close of trading on the New York Stock Exchange on the determination date or (b) 95% of the then current market price per share.

 

The DRIP administrator maintains all shareholder accounts in the dividend reinvestment plan and furnishes written confirmations of all transactions in the account, including information needed by shareholders for personal and tax records. Common shares in the account of each DRIP participant are held by the DRIP administrator in non-certificated form in the name of the participant, and each shareholder’s proxy includes shares purchased pursuant to the DRIP.

 

There is no charge to participants for reinvesting regular distributions and capital gains distributions. The fees of the DRIP administrator for handling the reinvestment of regular distributions and capital gains distributions are included in the fee to be paid by us to our transfer agent. There are no brokerage charges with respect to shares issued directly by us as a result of regular distributions or capital gains distributions payable either in shares or in cash. However, each participant bears a pro rata share of brokerage commissions incurred with respect to the DRIP administrator’s open market purchases in connection with the reinvestment of such distributions. Shareholders that opt-in to the DRIP will add to their investment through dollar cost averaging. Because all dividends and distributions paid to such shareholder will be automatically reinvested in additional common shares, the average cost of such shareholder’s common shares will decrease over time. Dollar cost averaging is a technique for lowering the average cost per share over time if the Fund’s NAV declines. While dollar cost averaging has definite advantages, it cannot assure profit or protect against loss in declining markets.

 

The automatic reinvestment of such dividends or distributions does not relieve participants of any income tax that may be payable on such dividends or distributions.

 

You may obtain additional information by contacting the DRIP administrator at the following address: Computershare, Attn: Sales Dept., P.O. Box 358035, Pittsburgh, PA 15252.

 

Semi-Annual Report | June 30, 2023

95

Blackstone Credit Funds

Additional Information

June 30, 2023 (Unaudited)

 

Portfolio Information. The Funds file their complete schedules of portfolio holdings with the Securities and Exchange Commission (the “SEC”) for the first and third quarters of each fiscal year as an exhibit on Form N-PORT within 60 days after the end of the Funds’ fiscal quarter. The Funds' portfolio holdings information for the third month of each fiscal quarter on Form N-PORT is available (1) on the Funds’ website located at www.blackstone-credit.com or (2) on the SEC’s website at http://www.sec.gov. Holdings and allocations shown on any Form N-PORT are as of the date indicated in the filing and may not be representative of future investments. Holdings and allocations should not be considered research or investment advice and should not be relied upon in making investment decisions.

 

Proxy Information. The policies and procedures used to determine how to vote proxies relating to securities held by the Funds are available (1) without charge, upon request, by calling 1-877-876-1121, (2) on the Funds’ website located at www.blackstone-credit.com, and (3) on the SEC’s website at http://www.sec.gov. Information regarding how the Funds voted proxies relating to portfolio securities during the most recent twelve-month period ended June 30 is available on Form N-PX by August 31 of each year (1) without charge, upon request, by calling 1-877-876-1121, (2) on the Funds’ website located www.blackstone-credit.com, and (3) on the SEC’s website at http://www.sec.gov.

 

Senior Officer Code of Ethics. The Funds file a copy of their code of ethics that applies to the Funds’ principal executive officer, principal financial officer or controller, or persons performing similar functions, with the SEC as an exhibit to each annual report on Form N-CSR. This will be available on the SEC’s website at http://www.sec.gov.

 

BSL Annual Meeting of Shareholders - Voting Results

On April 19, 2023, BSL held a special meeting of shareholders to consider the proposals set forth below. The following votes were recorded:

 

Proposal 1: The election of Edward D’Alelio as Class III Trustee of BSL, term to expire at the 2026 annual shareholder meeting (only common shareholders vote).

 

		Number of Shares				% of Shares Voted
Affirmative			10,680,870				96.16%
Withheld			426,093				3.84%
Total			11,106,963				100.000%

 

Proposal 2: The election of Jane Siebels as Class III Trustee of BSL, term to expire at the 2026 annual shareholder meeting (only common shareholders vote).

 

		Number of Shares				% of Shares Voted
Affirmative			10,710,213				96.43%
Withheld			396,750				3.57%
Total			11,106,963				100.00%

 

BGX Annual Meeting of Shareholders - Voting Results 

On April 19, 2023, BGX held a special meeting of shareholders to consider the proposals set forth below. The following votes were recorded:

 

Proposal 1: The election of Edward D’Alelio as Class II Trustee of BGX, term to expire at the 2026 annual shareholder meeting (only preferred shareholders vote).

 

		Number of Shares				% of Shares Voted
Affirmative			18,800				100.00%
Withheld			0				0.00%
Total			18,800				100.00%

 

Proposal 2: The election of Jane Siebels as Class II Trustee of BGX, term to expire at the 2026 annual shareholder meeting (common and preferred shareholders vote).

 

		Number of Shares				% of Shares Voted
Affirmative			9,011,669				84.59%
Withheld			1,642,073				15.41%
Total			10,653,742				100.00%

 

96	www.blackstone-credit.com

Blackstone Credit Funds

Additional Information

June 30, 2023 (Unaudited)

 

Proposal 3: The election of Daniel H. Smith, Jr. as Class I Trustee of BGX, term to expire at the 2025 annual shareholder meeting (common and preferred shareholders vote).

 

		Number of Shares				% of Shares Voted
Affirmative			9,482,582				89.01%
Withheld			1,171,160				10.99%
Total			10,653,742				100.00%

 

BGB Annual Meeting of Shareholders - Voting Results

On April 19, 2023, BGB held a special meeting of shareholders to consider the proposals set forth below. The following votes were recorded:

 

Proposal 1: The election of Edward D’Alelio as Class I Trustee of BGB, term to expire at the 2026 annual shareholder meeting (only preferred shareholders vote).

 

		Number of Shares				% of Shares Voted
Affirmative			42,650				100.00%
Withheld			0				0.00%
Total			42,650				100.00%

 

Proposal 2: The election of Jane Siebels as Class I Trustee of BGB, term to expire at the 2026 annual shareholder meeting (common and preferred shareholders vote).

 

		Number of Shares				% of Shares Voted
Affirmative			36,386,828				91.82%
Withheld			3,243,825				8.18%
Total			39,630,653				100.00%

 

Proposal 3: The election of Daniel H. Smith, Jr. as Class III Trustee of BGB, term to expire at the 2025 annual shareholder meeting (common and preferred shareholders vote).

 

		Number of Shares				% of Shares Voted
Affirmative			37,509,514				94.65%
Withheld			2,121,139				5.35%
Total			39,630,653				100.00%

 

Semi-Annual Report | June 30, 2023

97

Blackstone Credit Funds

Privacy Procedures

June 30, 2023 (Unaudited)

 

This privacy policy sets forth the Adviser’s policies with respect to nonpublic personal information of individual investors, shareholders, prospective investors and former investors of investment funds managed by the Adviser. These policies apply to individuals only and are subject to change.

 

Rev April 2021

 

FACTS	WHAT DO BLACKSTONE REGISTERED FUNDS DO WITH YOUR PERSONAL INFORMATION?
Why?	Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand what we do.
What?	The types of personal information we collect and share depend on the product or service you have with us. This information can include: ●    Social Security number and income  ●    Assets and investment experience  ●    Risk tolerance and transaction history
How?	All financial companies need to share customers’ personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers’ personal information; the reasons Blackstone Registered Funds (as defined below) choose to share; and whether you can limit this sharing.

 

Reasons we can share your personal information	Do Blackstone   Registered Funds share?	Can you limit  this sharing?
For our everyday business purposes – such as to process your transactions, maintain your account(s), respond to court orders and legal investigations, or report to credit bureaus	Yes	No
For our marketing purposes – to offer our products and services to you	Yes	No
For joint marketing with other financial companies	No	We don't share
For our affiliates' everyday business purposes – information about your transactions and experiences	No	We don't share
For our affiliates' everyday business purposes – information about your creditworthiness	No	We don't share
For our affiliates to market to you	No	We don't share
For nonaffiliates to market to you	No	We don't share

 

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Blackstone Credit Funds

Privacy Procedures

June 30, 2023 (Unaudited)

 

Questions?	Email us at GLB.privacy@blackstone.com
Who We Are
Who is providing this notice?	Blackstone Registered Funds include Blackstone Alternative Investment Funds, on behalf of its series Blackstone Alternative Multi-Strategy Fund, Blackstone Diversified Multi-Strategy Fund, a sub-fund of Blackstone Alternative Investment Funds plc, Blackstone Floating Rate Enhanced Income Fund, Blackstone Senior Floating Rate 2027 Term Fund, Blackstone Long-Short Credit Income Fund, Blackstone Strategic Credit 2027 Term Fund, Blackstone Secured Lending Fund, Blackstone Real Estate Income Fund, Blackstone Real Estate Income Fund II, and Blackstone Real Estate Income Master Fund.
What We Do
How do Blackstone Registered Funds protect my personal information?	To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include computer safeguards and secured files and buildings.
How do Blackstone Registered Funds collect my personal information?	We collect your personal information, for example, when you: ●     open an account or give us your income information ●     provide employment information or give us your contact information ●     tell us about your investment or retirement portfolio We also collect your personal information from others, such as credit bureaus, affiliates, or other companies.
Why can't I limit all sharing?	Federal law gives you the right to limit only: ●     sharing for affiliates’ everyday business purposes—information about your creditworthiness ●     affiliates from using your information to market to you sharing for nonaffiliates to market to you State laws and individual companies may give you additional rights to limit sharing. See below for more on your rights under state law.
What happens when I limit sharing for an account I hold jointly with someone else?	Your choices will apply to everyone on your account — unless you tell us otherwise.
Definitions
Affiliates	Companies related by common ownership or control. They can be financial and nonfinancial companies. ●    Our affiliates include companies with a Blackstone name and financial companies such as Blackstone Credit and Strategic Partners Fund Solutions.
Nonaffiliates	Companies not related by common ownership or control. They can be financial and nonfinancial companies. ●    Blackstone Registered Funds do not share with nonaffiliates so they can market to you.
Joint marketing	A formal agreement between nonaffiliated financial companies that together market financial products or services to you. ●    Our joint marketing partners include financial services companies.

 

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Blackstone Credit Funds

Privacy Procedures

June 30, 2023 (Unaudited)

 

Other Important Information

California Residents — In accordance with California law, we will not share information we collect about California residents with nonaffiliates except as permitted by law, such as with the consent of the customer or to service the customer’s accounts. We will also limit the sharing of information about you with our affiliates to the extent required by applicable California law.

 

Vermont Residents — In accordance with Vermont law, we will not share information we collect about Vermont residents with nonaffiliates except as permitted by law, such as with the consent of the customer or to service the customer’s accounts. We will not share creditworthiness information about Vermont residents among Blackstone Registered Funds’ affiliates except with the authorization or consent of the Vermont resident.

 

Contact Us

If you have any questions or comments about this Privacy Notice, or if you would like us to update information we have about you or your preferences, please email us at PrivacyQueries@Blackstone.com or access our web form www.blackstone.com/privacy.

 

You also may write to:

 

Blackstone Inc. 

Attn: Legal & Compliance

345 Park Avenue

New York, NY 10154

 

100	www.blackstone-credit.com

Blackstone Credit Funds

Privacy Procedures

June 30, 2023 (Unaudited)

 

INVESTOR DATA PRIVACY NOTICE

 

Why are you seeing this notice?

 

	●	You may need to provide Personal Data to us as part of your investment into a fund or other investment vehicle (as applicable, the Fund) managed or advised by investment advisers or management companies that are subsidiaries of The Blackstone Group Inc. or its affiliates (and, where applicable, the general partner of the relevant Fund) (collectively, Blackstone).
	●	We want you to understand how and why we use, store and otherwise process your Personal Data when you deal with us or our relevant affiliates (including under applicable data protection laws). If this notice (the Data Privacy Notice) has been made available to you, you may have certain rights with respect to your Personal Data under applicable data protection laws (including as described in this Data Privacy Notice).
	●	“Personal Data” has the meaning given to it under data protection laws that apply to our processing of your personal information, and includes any information relating to an identified or identifiable individual (such as name, address, date of birth, personal identification numbers, sensitive personal information, and economic information).
	●	We ask that investors promptly provide the information contained in this Data Privacy Notice to any individuals whose Personal Data they provide to the Fund or its affiliates in connection with ‘know your client’ / anti-money laundering requests or otherwise.

 

Please read the information below carefully. It explains how and why Personal Data is processed by us.

 

Who is providing this notice?

 

Blackstone is committed to protecting and respecting your privacy. Blackstone is a global financial services firm with offices, branches, operations and entities globally, including as described at this link: https://privacy.blackstone.com/visitors-online-privacy-notice/#appendixA

 

	●	For transparency, the Blackstone entities on whose behalf this privacy statement is made are: (i) the Fund; and (ii) where applicable, the Blackstone general partner, manager and/or investment adviser of the relevant Fund, in each case, with which you contract, transact or otherwise share Personal Data (together, the Fund Parties).
	●	Where we use the terms “we”, “us” and “our” in this Data Privacy Notice, we are referring to the Fund and the Fund Parties.
	●	Please consult your subscription documents, private placement memorandum or other offering documentation provided to you by or on behalf of the Fund Parties which will further specify the entities and contact details of the Fund Parties relevant to our relationship with you.
	●	We welcome investors and their representatives to contact us if they have any queries with respect to the Fund Parties (in particular, which Fund Parties are relevant to their relationship with Blackstone). If you have any queries, please see the ‘Contact Us’ section.

 

When you provide us with your Personal Data, each Fund Party that decides how and why Personal Data is processed acts as a “data controller”. In simple terms, this means that the Fund Party makes certain decisions on how to use and protect your Personal Data – but only to the extent that we have informed you about the use or are otherwise permitted by law.

 

Where your Personal Data is processed by an entity controlled by, or under common control with, the Blackstone entity/ies managing a Fund for its own purposes, this entity will also be a data controller.

 

What personal data do we collect about you?

 

The types of Personal Data that we collect and share depends on the product or service you have with us and the nature of your investment. The Personal Data we collect about you may include:

 

	●	Contact information, such as name, e-mail and postal address, and phone number;
	●	Demographic information, such as date and country of birth, gender, country of residence, nationality, and citizenship;
	●	Government-issued identification numbers provided in connection with a subscription to Funds, such as Social Security number, driver’s license number, passport number, national identification number, and tax identification number;
	●	Professional or employment-related information, such as the name of your employer or the organization you represent and your position;
	●	Financial information, such as information related to your transactions with us or others, bank account details (e.g., account and routing number), financial account history, information concerning the source of funds used for investments, and details regarding your investment history (e.g., types and amounts of investments) assets, income, and financial returns and positions;
	●	Investment preferences;

 

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Blackstone Credit Funds

Privacy Procedures

June 30, 2023 (Unaudited)

 

	●	Information related to background checks (e.g., “know your client”, anti-money laundering and sanctions checks) and any information related to applicable restrictions on your investments, such as political exposure or sanctions;
	●	Information collected in the context of monitoring and surveillance where permitted or required by applicable law, including recordings of telephone and video calls and CCTV; and
	●	Other information you or the organization you represent choose to provide, such as through eligibility questionnaires and ongoing investor relations communications.

 

We may combine Personal Data that you provide to us with Personal Data that we collect from you, or about you from other sources, in some circumstances. This will include Personal Data collected in an online or offline context.

 

Where do we obtain your personal data?

 

We collect Personal Data about you from a number of sources, including:

 

WHAT	HOW
Personal Data that you give us	●   From the forms and any associated documentation that you complete when subscribing for an investment, shares, interests, and/or opening an account with us. This can include information about your name, address, date of birth, passport details or other national identifier, driving license, your national insurance or Social Security number and income, employment information and details about your investment or retirement portfolio(s), and financial-related data (such as returns and financial positions) ●   When you provide it to us in correspondence and conversations, including electronic communications such as e-mail and telephone calls ●   When you make transactions with respect to the Fund ●   When you interact with our online platforms and websites (such as bxaccess.com) ●   When you purchase securities from us and/or tell us where to send money ●   From cookies, web beacons, and similar interactions when you or your devices access our sites ●   When we need to identify you and/or complete necessary security checks, where you visit one of our buildings or attend meetings. This can include form of ID, and your image for CCTV purposes.
Personal Data we obtain from others	We obtain Personal Data from: ●   Publicly available and accessible directories and sources ●   Bankruptcy registers ●   Tax authorities, including those that are based outside the territory in which you are located or domiciled, including the Cayman Islands, the United Kingdom (UK) and the European Economic Area (EEA), if you are subject to tax in another jurisdiction ●   Governmental and competent regulatory authorities to whom we have regulatory obligations ●   Credit agencies ●   Fraud prevention and detection agencies / organizations ●   Transaction counterparties

 

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Blackstone Credit Funds

Privacy Procedures

June 30, 2023 (Unaudited)

 

Why do we process your personal data?

 

We may process your Personal Data for the following reasons:

 

WHY	HOW
Contract	It is necessary to perform our contract with you to:  ●   Administer, manage and set up your investor account(s) to allow you to purchase your holding (of shares or interests) in our Funds  ●   Meet the resulting contractual obligations we have to you  ●   Facilitate the continuation or termination of the contractual relationship between you and the Fund  ●   Facilitate the transfer of funds, and administering and facilitating any other transaction, between you and the Fund
Compliance with law	It is necessary for compliance with an applicable legal or regulatory obligation to which we are subject, in order to:  ●   Undertake our client and investor due diligence, and on-boarding checks  ●   Carry out verification, “know your client”, terrorist financing, sanctions, and anti-money laundering checks  ●   Verify the identity and addresses of our investors (and, if applicable, their beneficial owners)  ●   Comply with requests from regulatory, governmental, tax and law enforcement authorities  ●   Carry out surveillance and investigations  ●   Carry out audit checks  ●   Maintain statutory registers  ●   Prevent and detect fraud  ●   Comply with sanctions requirements

 

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Blackstone Credit Funds

Privacy Procedures

June 30, 2023 (Unaudited)

 

Legitimate Interests

For our legitimate interests or those of a third party (such as a transaction counterparty or lender) to: ●   Manage and administer your holding in any Funds in which you are invested, and any related accounts on an ongoing basis ●   Assess and process any applications or requests made by you ●   Open, maintain or close accounts in connection with your investment in, or withdrawal from, the Fund scheme ●   Send updates, information and notices or otherwise correspond with you in connection with your investment in the Fund scheme ●   Address or investigate any complaints, claims, proceedings or disputes ●   Provide you with, and inform you about, our investment products and services ●   Monitor and improve our relationships with investors ●   Comply with applicable prudential and regulatory obligations, including anti-money laundering, sanctions and “know your client” checks ●   Assist our transaction counterparties to comply with their regulatory and legal obligations (including anti-money laundering, “know your client”, terrorist financing, and sanctions checks) ●   Manage our risk and operations ●   Comply with our accounting and tax-reporting requirements ●   Comply with our audit requirements ●   Assist with internal compliance with our policies and processes ●   Ensure appropriate group management and governance ●   Keep our internal records ●   Prepare reports on incidents/accidents ●   Protect our business against fraud, breach of confidence, theft of proprietary materials, and other financial or business crimes (to the extent that this is not required of us by law) ●   Analyze and manage commercial risks ●   Seek professional advice, including legal advice ●   Enable any actual or proposed assignee or transferee, participant or sub-participant of the partnership’s or Fund vehicles’ rights or obligations to evaluate proposed transactions ●   Facilitate business asset transactions involving the Fund partnership or Fund-related vehicles ●   Monitor communications to/from us using our systems ●   Protect the security and integrity of our information technology systems ●   Protect the security and safety of our buildings and locations where we operate ●   Operate, run and schedule online meetings, webinars and conferences (for example, using Zoom and other online meeting platforms) ●   Manage our financing arrangements with our financiers and financing transaction counterparties, including payment providers, intermediaries, and correspondent/agent banks ●   Monitor the operation of Fund distribution platforms, where these are operated by third parties or service providers   We only rely on these interests where we have considered that, on balance, the legitimate interests are not overridden by your interests, fundamental rights or freedoms.

 

Monitoring as described in ‘Legitimate Interests’ above

 

We monitor communications where the law requires us to do so. We will also monitor where we are required to do so to comply with regulatory rules and practices and, where we are permitted to do so, to protect our business and the security of our systems.

 

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Blackstone Credit Funds

Privacy Procedures

June 30, 2023 (Unaudited)

 

Who we share your personal data with

 

We may share your Personal Data as follows:

 

Who	Why
Fund Associates	We share your Personal Data with our associates, related parties and members of our group. This is: ●  To manage our relationship with you ●  For the legitimate interests of a third party in carrying out anti-money laundering, ‘know your client’, and other compliance checks required of them under applicable laws and regulations ●  For the purposes set out in this Data Privacy Notice
Fund Managers, Depositories, Administrators, Custodians, Distributors, Investment Advisers	●  Delivering the services you require ●  Managing your investment ●  Supporting and administering investment-related activities ●  Complying with applicable investment, anti-money laundering and other laws and regulations
Tax Authorities	●  To comply with applicable laws and regulations ●  Where required or requested by tax authorities in the territory in which you are located or domiciled (in particular, Cayman Island or UK/EEA tax authorities) who, in turn, may share your Personal Data with foreign tax authorities ●  Where required or requested by foreign tax authorities, including outside of the territory in which you are located or domiciled (including outside the Cayman Islands or UK/EEA)
Service Providers	●  Delivering and facilitating the services needed to support our business relationship with you (including cloud services) ●  Supporting and administering investment-related activities ●  Where disclosure to the service provider is considered necessary to support Blackstone with the purposes described in section 5 of this Data Privacy Notice
Financing Counterparties, Lenders, Correspondent and Agent Banks	●  Assisting these transaction counterparties with regulatory checks, such as ‘know your client’, and anti-money laundering procedures ●  Sourcing credit for Fund-related entities in the course of our transactions and fund life cycles
Our Lawyers, Auditors and other Professional Advisers	●  Providing you with investment-related services ●  To comply with applicable legal and regulatory requirements ●  Supporting Blackstone with the purposes described in section 5 of this Data Privacy Notice

 

In exceptional circumstances, we will share your Personal Data with:

 

	●	Competent regulatory, prosecuting and other governmental agencies or litigation counterparties, in a country or territory; and
	●	Other organizations and agencies – where we are required to do so by law.

 

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Blackstone Credit Funds

Privacy Procedures

June 30, 2023 (Unaudited)

 

Do you have to provide us with this personal data?

 

Where we collect Personal Data from you, we will indicate if:

 

	●	Provision of the Personal Data is necessary for our compliance with a legal obligation; or
	●	It is purely voluntary and there are no implications for you if you do not wish to provide us with it.

 

Unless otherwise indicated, you should assume that we require the Personal Data for business and/or compliance purposes.

 

Some of the Personal Data that we request is necessary for us to perform our contract with you and if you do not wish to provide us with this Personal Data, it will affect our ability to provide our services to you and manage your investment.

 

Sending your personal data internationally

 

We may transfer your Personal Data between different countries to recipients in countries other than the country in which the information was originally collected (including to our affiliates and group members, members of the Fund’s partnership, transaction counterparties, and third-party service providers). Where you are based in the UK, the EU, or another country which imposes data transfer restrictions outside of its territory, this includes transfers outside of the UK and the European Economic Area (“EEA”) or that geographical area, to those countries in which our affiliates, group members, service providers and business partners operate. Those countries may not have the same data protection laws as the country in which you initially provided the information.

 

Where we transfer Personal Data outside of the UK, the EEA, or other territories subject to data transfer restrictions to other members of our group, our service providers or another third party recipient, we will ensure that our arrangements with them are governed by data transfer agreements or appropriate safeguards, designed to ensure that your Personal Data is protected as required under applicable data protection law (including, where appropriate, under an agreement on terms approved for this purpose by the European Commission or by obtaining your consent).

 

Please contact us if you would like to know more about these agreements or receive a copy of them. Please see the ‘Contact Us’ section for details.

 

Consent – and your right to withdraw it

 

Except as may otherwise be required by local law, we do not generally rely on obtaining your consent to process your Personal Data. In particular, we do not generally rely on obtaining your consent where our processing of your Personal Data is subject only to the data protection laws of the UK/EEA (in these circumstances we will usually rely on another legal basis more appropriate in the circumstances, including those set out in “Why do we process your Personal Data?” above). If we do rely on consent for processing of your Personal Data, you have the right to withdraw this consent at any time. Please contact us or send us an e-mail at PrivacyQueries@Blackstone.com at any time if you wish to do so.

 

Where required by applicable law, we will obtain your consent for the processing of your Personal Data for direct marketing purposes. If you do receive direct marketing communications from us (for example, by post, e-mail, fax or telephone), you may opt-out by clicking the link in the relevant communication, completing the forms provided to you (where relevant), or by contacting us (see the ‘Contact Us’ section for details).

 

Retention and deletion of your personal data

 

We keep your Personal Data for as long as it is required by us for our legitimate business purposes, to perform our contractual obligations or, where longer, such longer period as is required or permitted by law or regulatory obligations which apply to us. We will generally:

 

	●	Retain Personal Data about you throughout the life cycle of any investment you are involved in; and
	●	Retain some Personal Data after your relationship with us ends.

 

As a general principle, we do not retain your Personal Data for longer than we need it. We will usually delete your Personal Data (at the latest) after you cease to be an investor in any fund and there is no longer any legal / regulatory requirement, or business purpose, for retaining your Personal Data.

 

106	www.blackstone-credit.com

Blackstone Credit Funds

Privacy Procedures

June 30, 2023 (Unaudited)

 

Your rights

 

You may, subject to certain limitations, have data protection rights depending on the data protection laws that apply to our processing of your Personal Data, including the right to:

 

	●	Access your Personal Data
	●	Restrict the use of your Personal Data in certain circumstances
	●	Have incomplete or inaccurate Personal Data corrected
	●	Ask us to stop processing your Personal Data
	●	Require us to delete your Personal Data in some limited circumstances

 

You also have the right in some circumstances to request us to “port” your Personal Data in a portable, re-usable format to other organizations (where this is possible).

 

We review and verify requests to protect your Personal Data, and will action data protection requests fairly and in accordance with applicable data protection laws and principles.

 

If you wish to exercise any of these rights, please see the ‘Contact Us’ section for details.

 

Concerns or queries

 

We take your concerns very seriously. We encourage you to bring to our attention any concerns you have about our processing of your Personal Data. This Data Privacy Notice was drafted with simplicity and clarity in mind. We are, of course, happy to provide any further information or explanation needed. Please see the ‘Contact Us’ section for details.

 

Please also contact us via any of the contact methods listed below if you have a disability and require an alternative format of this Data Privacy Notice.

 

If you want to make a complaint, you can also contact the body regulating data protection in your country, where you live or work, or the location where the data protection issue arose. In particular:

 

Country	Supervisory Authority
Cayman Islands	Cayman Islands Ombudsman (available at: https://ombudsman.ky)
European Union	A list of the EU data protection authorities and contact details is available by clicking this link:  http://ec.europa.eu/newsroom/article29/item-detail.cfm?item_id=612080
United Kingdom	Information Commissioner’s Office (available at: https://ico.org.uk/global/contact-us/)

 

Semi-Annual Report | June 30, 2023

107

Blackstone Credit Funds

Privacy Procedures

June 30, 2023 (Unaudited)

 

Contact us

 

Please contact us if you have any questions about this Data Privacy Notice or the Personal Data we hold about you.

 

Contact us by e-mail or access our web form by e-mailing PrivacyQueries@Blackstone.com.

 

Contact us in writing using this address:

 

Address

For EU/UK related queries:  40 Berkeley Square, London, W1J 5AL, United Kingdom  All other queries:  345 Park Avenue, New York, NY 10154

 

A list of country specific addresses and contacts for locations where we operate is available at https://privacy.blackstone.com/visitors-online-privacy-notice/#appendixA

 

Changes to this data privacy notice

 

We keep this Data Privacy Notice under regular review. Please check regularly for any updates at our investor portal (www.bxaccess.com).

 

108	www.blackstone-credit.com

Blackstone Credit Funds

Approval of Investment Advisory Agreement

June 30, 2023 (Unaudited)

 

The Investment Company Act of 1940, as amended (the “1940 Act”), requires that the Board of Trustees (collectively, the “Board”) of each of Blackstone Senior Floating Rate Term 2027 Term Fund (“BSL”), Blackstone Long-Short Credit Income Fund (“BGX”), and Blackstone Strategic Credit 2027 Term Fund (“BGB,” and together with BSL and BGX, the “Funds” and each a “Fund”), including a majority of its members who are not considered to be “interested persons” under the 1940 Act (the “Independent Trustees”) voting separately, approve on an annual basis the continuation of the Fund’s investment advisory agreement (each, an “Agreement” and collectively, the “Agreements”) with the Fund’s investment adviser, Blackstone Liquid Credit Strategies LLC (the “Adviser”). At a joint meeting (the “Contract Renewal Meeting”) held in person on May 24, 2023, the Board, including the Independent Trustees, considered, and unanimously approved, the continuation of each Agreement for an additional one-year term. To assist in its consideration, prior to the Contract Renewal Meeting, the Independent Trustees, through their Independent Legal Counsel (“Independent Counsel”) had requested, received and considered a variety of information, including information provided in response to a supplemental request (together with the information provided at the Contract Renewal Meeting, the “Contract Renewal Information”) about the Adviser, as well as the advisory arrangements for the Funds, certain portions of which are discussed below. In preparation for the Contract Renewal Meeting, the Independent Trustees met in person in a private session (the “Review Session”) prior to the Contract Renewal Meeting with Independent Counsel to review the Contract Renewal Information. No representatives of the Funds, the Adviser, or Fund management were present at the Review Session. In addition to the Contract Renewal Information, the Board received performance and other information since each Fund’s inception related to the services rendered by the Adviser to such Fund. The Board’s evaluation took into account the information received since each Fund’s inception and also reflected the knowledge and familiarity gained as members of the Board with respect to the investment advisory and other services provided to each Fund by the Adviser under that Fund’s Agreement.

 

Board Approval of the Continuation of the Agreements

In its deliberations regarding renewal of each Agreement, the Board, including the Independent Trustees, considered various factors, including those set forth below.

 

Nature, Extent and Quality of the Services Provided to the Funds under the Agreements

The Board received and considered Contract Renewal Information regarding the nature, extent and quality of services the Adviser provided to the Funds under the Agreements. Specifically, the Board took into account the fact that the Adviser has a large and knowledgeable investment team, with one of the largest credit teams in the United States and globally, and has expanded its team and resources. The Adviser also reviewed with the Board its investment process, as well as its infrastructure and operational teams that serve the Funds.

 

The Board also reviewed Contract Renewal Information regarding the Adviser’s compliance policies and procedures established pursuant to the 1940 Act and considered the compliance record for the Adviser and each Fund during the previous year and since its inception.

 

The Board reviewed the qualifications, backgrounds and responsibilities of the Funds’ senior personnel and the portfolio management team primarily responsible for the day-to-day portfolio management of each Fund. The Board also considered, based on its knowledge of the Adviser and its affiliates, the Contract Renewal Information and the Board’s discussions with the Adviser at the Contract Renewal Meeting, the general reputation and investment performance records of the Adviser and certain of its affiliates and the financial resources of the corporate parent of the Adviser, Blackstone Inc., available to support the Adviser’s activities in respect of the Funds.

 

The Board considered the responsibilities of the Adviser under each Fund’s Agreement, including the Adviser’s coordination and oversight of the services provided to the Fund by other unaffiliated parties.

 

In reaching its determinations regarding continuation of each Fund’s Agreement, the Board took into account that such Fund’s shareholders, in pursuing their investment goals and objectives, likely considered the reputation and the investment style, philosophy and strategy of the Adviser, as well as the resources available to the Adviser, in purchasing their shares.

 

Fund Performance

Among other things, the Board received and considered information and analyses (the “Broadridge Performance Information”) comparing the performance of each Fund with a group of funds (the “Peer Group”) selected by Broadridge Financial Solutions (“Broadridge”), an independent provider of investment company data, primarily from the Morningstar CEF classification of Bank Loan (the “Morningstar Classification of Bank Loan”), which consists of 31 closed-end funds. Broadridge selected the Peer Group funds primarily from the Morningstar Classification of Bank Loan to be as comparable as possible to the Funds based upon its consideration of the constituent funds’ investment style, share class characterization, and assets. The Board was provided with a description of the methodology Broadridge used to select each Fund’s Peer Group. On May 17, 2023, each of the members of the Board participated in a video conference call with Broadridge regarding the Broadridge Performance Information, including its peer grouping methodology and reporting format. Representatives of the Adviser also participated on that call. The Board noted Broadridge’s view that the relatively limited number of closed-end funds compared to the open-end fund universe creates limitations on peer grouping as compared to certain open-end funds.

 

Semi-Annual Report | June 30, 2023

109

Blackstone Credit Funds

Approval of Investment Advisory Agreement

June 30, 2023 (Unaudited)

 

The Peer Group for BSL consisted of eight funds, including BSL, for each of the 1-, 3-, 5- and 10-year periods ended March 31, 2023 (such periods being hereinafter called the “1- year period”, the “3- year period”, the “5- year period” and the “10- year period,” respectively) with an emphasis on strategies that have high net historical portfolio allocations to bank loans. The Peer Groups for BGX and BGB were the same, which consisted of nine funds, including both BGX and BGB, for each of the 1-, 3- and 5- year periods, and eight funds, including both BGX and BGB, for the 10- year period. The Peer Group for BGX and BGB included funds with historical portfolio allocations to bank loans higher than 20% and allocations to high-yield bonds. Most Peer Group funds, similar to BGX and BGB, had a majority of their assets allocated to bank loans, while two Peer Group funds had less than 50% of their assets allocated to bank loans. Broadridge included funds from outside the Morningstar Classification of Bank Loan with portfolio allocations to bank loans higher than 20% in the Peer Group for BGX and BGB. The Board noted that it had received and discussed with the Adviser information at periodic intervals since each Fund’s inception comparing such Fund’s performance against its benchmarks and its Peer Group funds at that time. The Board also noted that it also had received the return volatility and Sharpe ratio (a measure of risk-weighted return) of each Fund relative to its Peer Group funds. The performance discussion below focuses on the comparison of the Funds’ performance relative to the respective Peer Group, rather than to the broader Morningstar Classification of Bank Loan.

 

BSL

The Broadridge Performance Information comparing BSL’s performance to that of its Peer Group based on net asset value (“NAV”) per share showed, among other things, that BSL’s returns, measured on a gross return basis, ranked sixth among its Peer Group funds for the 1-year period; ranked first among its Peer Group funds for the 3-year period; ranked third among its Peer Group funds for the 5-year period; and ranked second among its Peer Group funds for the 10-year period.¹ BSL’s returns, measured on a net return basis ranked last among its Peer Group funds for the 1-year period; ranked first among its Peer Group funds for the 3-year period; ranked sixth among its Peer Group funds for the 5-year period; and ranked fifth among its Peer Group funds for the 10-year period. Whether measured on a gross or net return basis, BSL’s returns were higher than the Peer Group median performance for the 3-year period and lower than the Peer Group median performance for the 1-year period, and BSL’s gross returns were higher than the Peer Group median performance for the 1-year period, but were lower than the Peer Group median performance with respect to net returns for each of the 5- and 10-year periods. The Board also considered BSL’s performance relative to its benchmark and in absolute terms. The Broadridge Performance Information showed that, measured on a gross and net return basis, BSL outperformed its benchmark for each of the 3-, 5-, and 10- year periods. The Broadridge Performance Information noted that on an annualized trailing, gross return basis, BSL’s 3-, 5- and 10-year returns outperformed its Peer Group median, classification median and benchmark. On a gross return basis, BSL’s Sharpe ratio (a measure of risk-weighted return) ranked sixth fourth, fourth and sixth among its Peer Group funds, respectively, for the 1-, 3-, 5- and 10-year periods. On a net return basis, BSL’s Sharpe ratio ranked eighth, first, sixth and seventh, respectively, among its Peer Group funds for the 1-, 3-, 5- and 10-year periods.

 

BGX

The Broadridge Performance Information comparing BGX’s performance to that of the Peer Group based on NAV per share showed, among other things, that BGX’s returns, measured on a gross return basis, ranked eighth among its Peer Group funds for the 1-year period; ranked third among its Peer Group funds for the 3- and 10- year periods; and ranked fourth among its Peer Group funds for the 10-year period. BGX’s returns, measured on a net return basis, ranked eighth among its Peer Group funds for the 1-year period; ranked third among its Peer Group funds for the 3-year period; and ranked fifth among its Peer Group funds for the 5-and 10-year periods. The Fund’s gross and net returns were better than the Peer Group median return in the 3- and 5-year periods, while the Fund’s gross and net returns were worse than the Peer Group median return in the 1-year period, and the Fund’s gross returns were better than the Peer Group median for the 10-year period but the Fund’s net returns were below the Peer Group median return for the 10-year period. The Board also considered BGX’s performance relative to its benchmark and in absolute terms. The Broadridge Performance Information noted that BGX on a gross return basis outperformed its Peer Group and classification medians and benchmark for each of the 3-, 5-, and 10-year periods. On a gross return basis, BGX’s Sharpe ratio ranked eighth, seventh, fourth and sixth among its Peer Group funds, respectively, for the 1-, 3-, 5- and 10- year periods. On a net return basis, BGX’s Sharpe ratio ranked seventh, seventh, fifth and sixth, respectively, among its Peer Group funds for the 1-, 3-, 5- and 10- year periods.

 

BGB

The Broadridge Performance Information comparing BGB’s performance to that of the Peer Group based on NAV per share showed, among other things, that BGB’s returns, measured on a gross return basis, ranked seventh among its Peer Group funds for the 1-year period; ranked fifth among its Peer Group funds for the 3-year period; ranked eighth among its Peer Group funds for the 5-year period; and ranked sixth among its Peer Group fund for the 10-year period. BGB’s returns, measured on a net return basis, ranked seventh among its Peer Group funds for the 1-year period; ranked ninth among its Peer Group funds for the each of the 3- and 5-year periods; and ranked eighth among its Peer Group funds for the 10-year period. The Fund’s returns on both a gross and net return basis were lower than the Peer Group median performance for each of the 1-, 5- and 10-year periods, and the Fund’s gross returns were better than the Peer Group median return in the 3-year period, but the Fund’s net returns were below the Peer Group median return for the 3-year period. The Board also considered BGB’s performance relative to its benchmark and in absolute terms. The Broadridge Performance Information noted that BGB underperformed its Peer Group median on a gross return basis for each of the 1-, 3- and 10-year periods, while BGB is in line with its Peer Group median for the 3-year period The Broadridge Performance Information showed that BGB’s Sharpe ratio, on a gross return basis, was ranked seventh among its Peer Group funds for the 1-year period; and eighth among the Peer Group funds for each of the 3-, 5- and 10-year periods. BGB’s Sharpe ratio on a net return basis was ranked eighth among the Peer Group funds for each of the 1-, 3- and 10-year periods; and ninth among the Peer Group funds for the 5-year period.

 

1

First in these performance rankings represents the fund with the best returns in the Peer Group, and last in these performance rankings represents the fund with the worst returns in the Peer Group, whether measured on a gross or net return basis.

 

110	www.blackstone-credit.com

Blackstone Credit Funds

Approval of Investment Advisory Agreement

June 30, 2023 (Unaudited)

 

In assessing Fund performance, the Adviser noted that the small number and varying investment strategies of funds in the Peer Groups for BSL, BGX and BGB made meaningful performance comparisons challenging. Broadridge itself noted that the relatively limited number of closed-end funds compared to open-end funds poses particular challenges for peer grouping. The Adviser discussed with the Board whether the Morningstar Classification of Bank Loan provides relevant and appropriate performance comparisons in the case of BGX and BGB in light of their broader investment strategies. The Adviser also noted the particular limitations of the BGX and BGB Peer Groups, highlighting the wide range of investment strategies employed and returns achieved by funds in those Peer Groups (relative to the BSL Peer Group). In addition to the Broadridge Performance Information, the Board considered information provided by the Adviser regarding the Funds and the Morningstar Classification of Bank Loan and their respective Peer Groups as to differences in each Fund’s portfolio composition by asset class, credit rating, investment size, and other relevant metrics.

 

The Board also noted the credit review and other processes employed by the Adviser in managing the Funds’ investment portfolios, including that the Adviser continues to utilize a highly disciplined and repeatable investment approach with respect to the Funds. Based on its review and considering other relevant factors, including those noted above, the Board concluded that the Funds’ performance was acceptable.

 

Management Fees and Expenses

The Board reviewed and considered the investment advisory fee (the “Advisory Fee”) payable by each Fund to the Adviser under its respective Agreement in light of the nature, extent and overall quality of the investment advisory and other services provided by the Adviser to that Fund.

 

Additionally, the Board received and considered information and analyses (the “Broadridge Expense Information”) that Broadridge prepared, comparing, among other things, the Advisory Fee for each Fund and each Fund’s overall expenses with corresponding information contained in the Morningstar Classification of Bank Loan and each Fund’s Peer Group. The comparison was based upon the constituent funds’ latest fiscal years. The discussion below focuses on the Funds’ expenses relative to their respective Peer Groups, rather than to the broader Morningstar Classification of Bank Loan.

 

BSL

The eight funds in BSL’s Peer Group had average common share net assets ranging from $132.54 million to $809.89 million. Five of the other funds in the Peer Group were larger than BSL and two were smaller. The Broadridge Expense Information—which compared BSL’s actual total expenses to the Peer Group—showed, among other things, that the Fund’s actual Advisory Fee (i.e., giving effect to any voluntary fee waivers implemented by the Adviser with respect to the Fund and by the managers of the other Peer Group funds) as compared on the basis of common share net assets, ranked seventh among the eight funds in the Peer Group and was higher (i.e., worse) than the Peer Group median for that expense component. The Board noted that BSL’s actual advisory fee was closer to the average for managers with smaller fixed income retail platforms. The Fund’s actual total expenses, compared on the basis of common share net assets, ranked seventh among the funds in the Peer Group and were lower (i.e., better) than the Peer Group median for that expense component.

 

BGX

The ten funds in BGX’s Peer Group (which was the same as BGB’s Peer Group and included BGB) had average common share net assets ranging from $132.54 million to $809.89 million. Six of the other funds in the Peer Group were larger than BGX and two were smaller. The Broadridge Expense Information—which compared BGX’s actual total expenses to the Fund’s Peer Group—showed, among other things, that the Fund’s actual Advisory Fee as compared on the basis of common share net assets, ranked fourth among the funds in the Peer Group and was lower (i.e., better) than the Peer Group median for that expense component. The Fund’s actual total expenses, compared on the basis of common share net assets, ranked tied for fifth among the funds in the Peer Group and were higher (i.e., worse) than the Peer Group median for that expense component.

 

BGB

The ten funds in BGB’s Peer Group (which was the same as BGX’s Peer Group and included BGX) had average common share net assets ranging from $132.54 million to $809.89 million. One of the other funds in the Peer Group was larger than BGB and seven were smaller. The Broadridge Expense Information—which compared BGB’s actual total expenses to the Fund’s Peer Group—showed, among other things, that the Fund’s actual Advisory Fee as compared on the basis of common share net assets, ranked seventh among the funds in the Peer Group and was higher (i.e., worse) than the Peer Group median for that expense component. The Board noted that BGB’s actual advisory fee was closer to the average for managers with smaller fixed income retail platforms. The Fund’s actual total expenses, compared on the basis of common share net assets, ranked tied sixth among the funds in the Peer Group and were higher (i.e., worse) than the Peer Group median for that expense component.

 

Semi-Annual Report | June 30, 2023

111

Blackstone Credit Funds

Approval of Investment Advisory Agreement

June 30, 2023 (Unaudited)

 

The Board took into account that the Broadridge Expense Information indicated that the gross expense ratios of BSL, BGX and BGB increased year- over-year. The Board also noted that the allocation of both non-compensation and compensation expenses to the Funds increased year-over-year.

 

In its evaluation of the Advisory Fee and the Broadridge Expense Information for each Fund, the Board took into account the complexity of each Fund’s investment program and the credit review and other processes the Adviser employs in managing the Funds’ investment portfolios, including the Adviser’s standing and reputation in the leveraged finance market and the strength of its trading and middle office and risk management support teams. The Board noted that the Advisory Fee for each of BSL, BGX and BGB were slightly lower year-over-year. The Board further noted that the relatively limited number of closed-end funds compared to the open-end fund universe poses particular challenges for concise peer grouping. The Board considered the Adviser’s belief that in making such peer comparisons, smaller funds, such as BSL and BGX, may be disadvantaged versus larger funds that have greater opportunities for economies of scale. The Adviser provided, and the Board considered, expense information contained in the Broadridge Expense Information in support of this belief.

 

The Board also considered Contract Renewal Information regarding fees (including sub-advisory fees) charged by the Adviser to other U.S. clients investing primarily in an asset class similar to that of the Funds, including, where applicable, institutional commingled funds and exchange-traded funds. The Board was advised that the base fees paid by such institutional and other clients generally are lower, and may be significantly lower, than the Advisory Fee for any one Fund. The Contract Renewal Information discussed the significant differences in scope of services provided to the Funds and to these other clients, noting that the Funds were subject to heightened regulatory requirements relative to institutional clients; that the Funds require additional resources for administration; and that the Adviser manages the leverage arrangements of the Funds and coordinates and oversees the provision of services to the Funds by other fund service providers. The Board considered the fee comparisons in light of the different services provided in managing these other types of clients and funds.

 

Taking all of the above into consideration, the Board determined that the Advisory Fee for each Fund was reasonable in light of the nature, extent and overall quality of the investment advisory and other services provided to such Fund under its Agreement.

 

Profitability

The Board, as part of the Contract Renewal Information, received an analysis of the profitability to the Adviser and its affiliates in providing services to each Fund for each of the past two fiscal years, as well as a description of the methodology by which the Adviser calculates that profitability and any changes in the methodology since the prior year. In addition, the Board received Contract Renewal Information with respect to the Adviser’s revenue and cost allocation methodologies it used in preparing such profitability data. The Board agreed that the Adviser’s profitability in providing investment advisory and other services to each Fund was at a level which was not considered excessive in light of the nature, extent and overall quality of such services.

 

Economies of Scale

The Board received Contract Renewal Information concerning whether the Adviser would realize economies of scale if the Funds’ assets grow. The Board noted that BGB currently does not have any plans to seek additional assets beyond maintaining its dividend reinvestment plan, any significant growth in its assets generally will occur through appreciation in the value of the Fund’s investment portfolio, rather than sales of additional shares in the Fund. The Board further noted that BGX and BSL were currently in the same circumstance, except that either could engage in an at-the-market offering to raise additional capital. The Board determined that for each Fund, to the extent economies of scale may be realized by the Adviser, the benefits of such economies of scale would be shared with the Fund and its shareholders as the Fund grows.

 

Other Benefits to the Adviser

The Board considered other benefits the Adviser and its affiliates receive as a result of the Adviser’s relationship with each of the Funds and did not regard such benefits as excessive.

 

* * * * *

 

In light of all of the foregoing and other relevant factors, the Board determined that, under the circumstances, continuation of each Fund’s Agreement would be in the interests of the Fund and its shareholders and unanimously voted to continue the Agreement for a period of one additional year.

 

The Board did not identify any single factor it reviewed as being the principal factor in determining whether to approve continuation of each Agreement for the next year, and each Board member attributed different weights to the various factors. The Independent Trustees were advised by their Independent Counsel throughout the process. Prior to the Review Session and the Contract Renewal Meeting, the Independent Trustees received a memorandum as to their responsibilities from their Independent Counsel. Prior to voting, the Independent Trustees discussed the proposed continuation of the Agreements in a private session with their Independent Counsel at which no representatives of the Adviser or Fund management were present.

 

112	www.blackstone-credit.com

Blackstone Credit Funds

Trustees & Officers

June 30, 2023 (Unaudited)

 

The overall management of the business and affairs of the Funds, including oversight of the Adviser, is vested in the Board. The Board is classified into three classes—Class I, Class II and Class III—as nearly equal in number as reasonably possible, with the Trustees in each class to hold office until their successors are elected and qualified. At each succeeding annual meeting of shareholders, the successors to the class of Trustees whose terms expire at that meeting shall be elected to hold office for terms expiring at the later of the annual meeting of shareholders held in the third year following the year of their election or the election and qualification of their successors. The Funds’ executive officers were appointed by the Board to hold office until removed or replaced by the Board or until their respective successors are duly elected and qualified.

 

Below is a list of the Trustees and officers of the Funds and their present positions and principal occupations during the past five years. The business address of the Funds, the Adviser, the Trustees and the Funds’ officers is 345 Park Avenue, 31st Floor, New York, NY 10154, unless specified otherwise below.

 

NON-INTERESTED TRUSTEES

Name, Address and Year of Birth(1)	Position(s) Held with the Funds	Term of Office and Length of Time Served	Principal Occupation(s) During the Past Five Years	Number of Portfolios in Fund Complex(2) Overseen by Trustee	Other Directorships Held by the Trustee During the Past Five Years
Jane M. Siebels Birth Year: 1960	Lead Independent Trustee and member of Audit and Nominating and Governance Committees	Trustee Since: BSL: November 2021 BGX: November 2021 BGB: November 2021 Term Expires: BSL: 2026 BGX: 2026 BGB: 2026	Ms. Siebels was formerly a Consultant at Per4M and advises a small global equity hedge fund. Prior to 2019, she was CEO and CIO of Amber Asset Management, f/k/a Green Cay Asset Management.	4	Scotia Bank (Bahamas); Scotia Bank International (Bahamas); Scotia Trust (Bahamas); First Trust Bank (Bahamas); Global Innovation Fund; JackPotJoy (Bahamas) (until 2021); Amber Asset Management (until 2019)
Edward H. D'Alelio Birth Year: 1952	Trustee, Member of Audit and Nominating and Governance Committees	Trustee Since: BSL: April 2010 BGX: November 2010 BGB: May 2012 Term Expires: BSL: 2026 BGX: 2026 BGB: 2026	Mr. D'Alelio was formerly a Managing Director and CIO for Fixed Income at Putnam Investments, Boston where he retired in 2002. He currently is an Executive in Residence with the School of Management, Univ. of Mass Boston.	4	Owl Rock Capital Corp. business development companies (“BDCs”) (7 portfolios overseen in Fund Complex)
Thomas W. Jasper Birth Year: 1948	Trustee, Chairman of Audit Committee and member of Nominating and Governance Committee	Trustee Since: BSL: April 2010 BGX: November 2010 BGB: May 2012 Term Expires: BSL: 2024 BGX: 2024 BGB: 2024	Mr. Jasper is the Managing Partner of Manursing Partners LLC, a consulting firm.	4	Sisecam Resources LP (formerly, Ciner Resources LP) (master limited partnership)
Gary S. Schpero Birth Year: 1953	Trustee, Chairman of Nominating and Governance Committee and member of Audit Committee	Trustee Since: BSL: May 2012 BGX: May 2012 BGB: May 2012 Term Expires: BSL: 2024 BGX: 2024 BGB: 2024	Mr. Schpero is retired. Prior to January 2000, he was a partner at the law firm of Simpson Thacher & Bartlett LLP where he served as managing partner of the Investment Management and Investment Company Practice Group.	4	EQ Premier VIP Trust; EQ Advisors Trust; 1290 Funds

 

Semi-Annual Report | June 30, 2023

113

Blackstone Credit Funds

Trustees & Officers

June 30, 2023 (Unaudited)

 

INTERESTED TRUSTEE⁽³⁾

Name, Address and Year of Birth(1)	Position(s) Held with the Funds	Term of Office and Length of Time Served	Principal Occupation(s) During the Past Five Years	Number of Portfolios in Fund Complex(2) Overseen by Trustee	Other Directorships Held by the Trustee During the Past Five Years
Daniel H. Smith, Jr. Birth Year: 1963	Trustee, Chairman of the Board, President, Chief Executive Officer	Trustee Since: BSL: April 2010 BGX: November 2010 BGB: May 2012 Term Expires: BSL: 2025 BGX: 2025 BGB: 2025	Mr. Smith is a Senior Managing Director of Blackstone Credit and is Chairman of Liquid Credit Strategies. Mr. Smith joined Blackstone Credit from the Royal Bank of Canada in July 2005 where he was a Managing Partner and Co-head of RBC Capital Market's Alternative Investments Unit.	4	None

 

TRUSTEE EMERITUS

Name, Address and Year of Birth(1)	Position(s) Held with the Funds	Term of Office and Length of Time Served	Principal Occupation(s) During the Past Five Years	Number of Portfolios in Fund Complex(2) Overseen by Trustee	Other Directorships Held by the Trustee During the Past Five Years
Michael F. Holland(4) Birth Year: 1944	Trustee Emeritus	Trustee From: BSL: April 2010 – May 2022 BGX: November 2010 – May 2022 BGB: May 2012 – May 2022 Trustee Emeritus Since: BSL: May 2022 BGX: May 2022 BGB: May 2022 Trustee Emeritus Term Expires: BSL: May 2023 BGX: May 2023 BGB: May 2023	Mr. Holland is the Chairman of Holland & Company, a private investment firm he founded in 1995. He is also President and Founder of the Holland Balanced Fund.	N/A	State Street Master Funds; Reaves Utility Income Fund; The China Fund, Inc. (until 2019); The Taiwan Fund (until 2017)

 

114	www.blackstone-credit.com

Blackstone Credit Funds

Trustees & Officers

June 30, 2023 (Unaudited)

 

OFFICERS

Name, Address and Year of Birth(1)	Position(s) Held with the Funds	Term of Office and Length of Time Served	Principal Occupation During the Past Five Years
Daniel H. Smith, Jr. Birth Year: 1963	Trustee, Chairman of the Board, President, Chief Executive Officer	Officer Since: BSL: April 2010 BGX: November 2010 BGB: May 2012 Term of Office: Indefinite	Mr. Smith is a Senior Managing Director of Blackstone Credit and is Chairman of Liquid Credit Strategies. Mr. Smith joined Blackstone Credit from the Royal Bank of Canada in July 2005 where he was a Managing Partner and Co-head of RBC Capital Market's Alternative Investments Unit.
Gregory Roppa Birth Year: 1976	Chief Financial Officer and Treasurer	Officer Since: BSL: March 2022 BGX: March 2022 BGB: March 2022 Term of Office: Indefinite	Mr. Roppa is a Managing Director in the Global Fund Finance group of Blackstone, where he focuses on the accounting and financial reporting for certain entities within Blackstone Credit, Real Estate, and Insurance businesses. Before joining Blackstone in 2019, Mr. Roppa was the Director of Operations and Fund Accounting for Clinton Group Inc., an alternative asset management firm. Prior to that Mr. Roppa began his career in the financial services audit practice at Arthur Andersen LLP. Mr. Roppa received a B.S. in Accounting from Binghamton University, where he graduated cum laude. He is a Certified Public Accountant.
Robert Zable Birth Year: 1972	Executive Vice President and Assistant Secretary	Officer Since: BSL: September 2015 BGX: September 2015 BGB: September 2015 Term of Office: Indefinite	Mr. Zable is a Senior Managing Director and as of 2023 is the Global Head of Liquid Credit Strategies. Mr. Zable is also Senior Portfolio Manager of the U.S. CLOs and closed-end funds within Blackstone Credit’s Liquid Credit Strategies business. Before joining Blackstone Credit in 2007, Mr. Zable was a Vice President at FriedbergMilstein LLC, where he was responsible for credit opportunity investments and junior capital origination and execution. Prior to that, Mr. Zable was a Principal with Abacus Advisors Group, a restructuring and distressed investment firm. Mr. Zable began his career at JP Morgan Securities Inc., where he focused on leveraged finance in New York and London.
Marisa Beeney Birth Year: 1970	Chief Legal Officer and Secretary	Officer Since: BSL: April 2010 BGX: November 2010 BGB: May 2012 Term of Office: Indefinite	Ms. Beeney is a Senior Managing Director and General Counsel of Blackstone Credit. Before joining Blackstone Credit, she was with the finance group of DLA Piper. Ms. Beeney began her career at Latham & Watkins LLP working primarily on project finance and development transactions, as well as other structured credit products.
William Renahan Birth Year: 1969	Chief Compliance Officer	Officer Since: BSL: September 2022 BGX: September 2022 BGB: September 2022 Term of Office: Indefinite	Mr. Renahan is a Managing Director in the Legal and Compliance group of Blackstone. Before joining Blackstone in 2022, he was a Senior Managing Director and Chief Compliance Officer at Duff & Phelps Investment Management. Mr. Renahan previously served for approximately 13 years at Legg Mason and predecessor firms as a Managing Director and Senior Counsel. He was also previously an associate in the New York office of the law firm Battle Fowler LLP (which subsequently merged into Paul Hastings LLP). Mr. Renahan has been an active member of the Investment Company Institute ("ICI") and served as Chairman of the ICI’s Closed-End Fund Committee from 2014-2018.
Valerie Naratil Birth Year: 1988	Public Relations Officer	Officer Since: BSL: February 2021 BGX: February 2021 BGB: February 2021 Term of Office: Indefinite	Ms. Naratil is a Principal of Blackstone Credit and a member of the Product Management team within Blackstone Credit’s Liquid Credit Strategies business. Before joining Blackstone Credit in 2014, Ms. Naratil worked at UBS Investment Bank, advising corporate clients across the Healthcare industry.

 

Semi-Annual Report | June 30, 2023

115

Blackstone Credit Funds

Trustees & Officers

June 30, 2023 (Unaudited)

 

(1)

The address of each Trustee/Nominee, Trustee Emeritus and Officer, unless otherwise noted, is Blackstone Alternative Credit Advisors LP, 345 Park Avenue, 31st Floor, New York, NY 10154.

(2)

The “Fund Complex” consists of the Blackstone Credit Closed-End Funds, Blackstone Secured Lending Fund, Blackstone Private Credit Fund, and Blackstone Alternative Multi-Strategy Fund.

(3)

"Interested person" of the Funds as defined in Section 2(a)(19) of the 1940 Act. Mr. Smith is an interested person due to his employment with the Adviser.

(4)

Mr. Holland was a Trustee Emeritus of the Funds from May 25, 2022 through May 25, 2023.

 

116	www.blackstone-credit.com

 

 

 

(b)

Not applicable.

 

Item 2. Code of Ethics.

 

Not applicable to this Report.

 

Item 3. Audit Committee Financial Expert.

 

Not applicable to this Report.

 

Item 4. Principal Accountant Fees and Services.

 

Not applicable to this Report.

 

Item 5. Audit Committee of Listed Registrants.

 

Not applicable to this Report.

 

Item 6. Investments.

 

(a)

Schedule of Investments in securities of unaffiliated issuers as of the close of the reporting period is included as part of the Report to Stockholders filed under Item 1(a) of this Form N-CSR.

 

(b)

Not applicable.

 

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

 

Not applicable to this Report.

 

Item 8. Portfolio Managers of Closed-End Management Investment Companies.

 

(a)    Not applicable to this Report.

 

(b)

As of the date of this filing, there have been no changes in any of the portfolio managers identified in the most recent annual report on Form N-CSR.

 

Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.

 

None. 

Item 10. Submission of Matters to a Vote of Security Holders.

 

There have been no material changes to the procedures by which shareholders may recommend nominees to the registrant’s Board of Trustees, where those changes were implemented after the registrant last provided disclosure in response to the requirements of Item 407(c)(2)(iv) of Regulation S-K, or this Item.

 

Item 11. Controls and Procedures.

 

(a)

The registrant’s principal executive officer and principal financial officer have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the 1940 Act) are effective as of a date within 90 days of the filing date of this Report, based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended.

 

(b)

There was no change in the registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the period covered by this Report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting.

 

Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.

 

Not applicable.

 

Item 13. Exhibits.

 

(a)(1) Not applicable to this Report.

 

(a)(2) The certifications required by Rule 30a-2(a) under the 1940 Act are attached hereto as Exhibit 99.Cert.

 

(a)(3) Not applicable.

 

(a)(4) Not applicable.

 

(b) The certifications by the registrant’s principal executive officer and principal financial officer, as required by Rule 30a-2(b) under the 1940 Act, and Section 906 of the Sarbanes-Oxley Act of 2002 are attached hereto as Exhibit 99.906Cert.

 

(c) Disclosure pursuant to Section 13(r) of the Securities Exchange Act of 1934, as amended, is attached hereto as Exhibit EX-99.IRANNOTICE.

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

Blackstone Long-Short Credit Income Fund
By:	/s/ Daniel H. Smith, Jr.
	Daniel H. Smith, Jr. (Principal Executive Officer)
	President and Chief Executive Officer
Date:	September 7, 2023
By:	/s/ Gregory Roppa
	Gregory Roppa (Principal Financial Officer)
	Treasurer and Chief Financial Officer
Date:	September 7, 2023

 

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.

 

Blackstone Long-Short Credit Income Fund
By:	/s/ Daniel H. Smith, Jr.
	Daniel H. Smith, Jr. (Principal Executive Officer)
	President and Chief Executive Officer
Date:	September 7, 2023
By:	/s/ Gregory Roppa
	Gregory Roppa (Principal Financial Officer)
	Treasurer and Chief Financial Officer
Date:	September 7, 2023

 

 

 

 

 

Exhibit 99.Cert

 

I, Daniel H. Smith, Jr., President and Chief Executive Officer of Blackstone Long-Short Credit Income Fund (the “Registrant”), certify that:

 

1.

I have reviewed this report on Form N-CSR of the Registrant;

 

2.

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3.

Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the Registrant as of, and for, the periods presented in this report;

 

4.

The Registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the Registrant and have:

 

a.

Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

b.

Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

c.

Evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and

 

d.

Disclosed in this report any change in the Registrant’s internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and

 

5.

The Registrant’s other certifying officer and I have disclosed to the Registrant’s auditors and the audit committee of the Registrant’s board of directors (or persons performing the equivalent functions):

a.

All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant’s ability to record, process, summarize, and report financial information; and

 

b.

Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial reporting.

 

By:	/s/ Daniel H. Smith, Jr.
	Daniel H. Smith, Jr. (Principal Executive Officer)
	President and Chief Executive Officer
Date:	September 7, 2023

I, Gregory Roppa, Treasurer and Chief Financial Officer of Blackstone Long-Short Credit Income Fund (the “Registrant”), certify that:

 

1.

I have reviewed this report on Form N-CSR of the Registrant;

 

2.

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3.

Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the Registrant as of, and for, the periods presented in this report;

 

4.

The Registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the Registrant and have:

 

a.

Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

b.

Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

c.

Evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and

 

d.

Disclosed in this report any change in the Registrant’s internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and

 

5.

The Registrant’s other certifying officer and I have disclosed to the Registrant’s auditors and the audit committee of the Registrant’s board of directors (or persons performing the equivalent functions):

a.

All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant’s ability to record, process, summarize, and report financial information; and

 

b.

Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial reporting.

 

By:	/s/ Gregory Roppa
	Gregory Roppa (Principal Financial Officer)
	Treasurer and Chief Financial Officer
Date:	September 7, 2023

Exhibit 99.906Cert

 

This certification is furnished pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. § 1350, and accompanies the report on Form N-CSR for the period ended June 30, 2023 (the “Report”) of Blackstone Long-Short Credit Income Fund (the “Registrant”).

 

I, Daniel H. Smith, Jr., the President and Chief Executive Officer of the Registrant, certify that, to my knowledge:

 

(i)

the Report fully complies with the requirements of Section 13(a) or Section 15(d), as applicable, of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)); and

 

(ii)

the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant.

 

Dated:	September 7, 2023
By:	/s/ Daniel H. Smith, Jr.
	Daniel H. Smith, Jr. (Principal Executive Officer)
	President and Chief Executive Officer

This certification is furnished pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. § 1350, and accompanies the report on Form N-CSR for the period ended June 30, 2023 (the “Report”) of Blackstone Long-Short Credit Income Fund (the “Registrant”).

 

I, Gregory Roppa, the Treasurer and Chief Financial Officer of the Registrant, certify that, to my knowledge:

 

(i)

the Report fully complies with the requirements of Section 13(a) or Section 15(d), as applicable of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)); and

 

(ii)

the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant.

 

Dated:	September 7, 2023
By:	/s/ Gregory Roppa
	Gregory Roppa (Principal Financial Officer)
	Treasurer and Chief Financial Officer

EX-99.IRANNOTICE

 

Iran-Related Activities Disclosure

 

Disclosure Pursuant to Section 219 of the Iran Threat Reduction and Syria Human Rights Act and Section 13(r) of the Securities Exchange Act of 1934

 

Section 219 of the Iran Threat Reduction and Syria Human Rights Act of 2012 and Section 13(r) of the Securities Exchange Act of 1934 (the “Exchange Act”) require an issuer to disclose in its annual and quarterly reports whether it or any of its affiliates have knowingly engaged in specified activities or transactions relating to Iran. Blackstone Long-Short Credit Income Fund (the “Fund”) is required to include certain disclosures in its periodic reports if the Fund or any of its “affiliates” (as defined in Rule 12b-2 under the Exchange Act) knowingly engaged in certain specified activities, transactions or dealings relating to Iran or with certain individuals or entities targeted by United States’ economic sanctions during the period covered by the report. Disclosure is generally required even where the activities, transactions or dealings were conducted in compliance with applicable law. Neither Blackstone Alternative Credit Advisors LP nor any of its controlled affiliates or subsidiaries knowingly engaged in any of the specified activities relating to Iran or otherwise engaged in any activities associated with Iran during the reporting period. However, because the SEC defines the term “affiliate” broadly, it includes any person or entity that is under common control with the Fund as well as any entity that controls the Fund or is controlled by the Fund.

 

Blackstone Inc. (“Blackstone”), which may be considered the Fund’s affiliate, included the disclosure reproduced below in its Quarterly Report on Form 10-Q for the quarter ended March 31, 2023. The Fund has not independently verified or participated in preparation of this disclosure:

 

“Mundys S.p.A. (formerly “Atlantia S.p.A.”) provided the disclosure reproduced below in connection with activities during the quarter ended March 31, 2023. We have not independently verified or participated in the preparation of this disclosure.

 

‘Disclosure pursuant to Section 13(r) of the Securities Exchange Act of 1934. Funds affiliated with Blackstone first invested in Mundys S.p.A. (formerly “Atlantia S.p.A.”) on November 18, 2022 in connection with the voluntary public tender offer by Schema Alfa S.p.A. for all of the shares of Mundys S.p.A, pursuant to which such funds obtained a minority non-controlling interest in Mundys S.p.A. Mundys S.p.A. owns and controls Aeroporti di Roma S.p.A. (“ADR”), an operator of airports in Italy including Leonardo da Vinci-Fiumicino Airport. Iran Air has historically operated periodic flights to and from Leonardo da Vinci-Fiumicino Airport as authorized, from time to time, by an aviation-related bilateral agreement between Italy and Iran, scheduled in compliance with European Regulation 95/93, and approved by the Italian Civil Aviation Authority. ADR, as airport operator, is under a mandatory obligation to provide airport services to all air carriers (including Iran Air) authorized by the applicable Italian authority. The relevant turnover attributable to these activities (whose consideration is calculated on the basis of general tariffs determined by such independent Italian authority) in the quarter ended March 31, 2023 was less than € 35,000. Mundys S.p.A. does not track profits specifically attributable to these activities.’”

 

Blackstone also included the following disclosure in its Quarterly Report on Form 10-Q for the quarter ended June 30, 2023. The Fund has not independently verified or participated in preparation of this disclosure:

 

Mundys S.p.A. (formerly “Atlantia S.p.A.”) provided the disclosure reproduced below in connection with activities during the quarter ended June 30, 2023. We have not independently verified or participated in the preparation of this disclosure.

 

“Disclosure pursuant to Section 13(r) of the Securities Exchange Act of 1934. Funds affiliated with Blackstone first invested in Mundys S.p.A. on November 18, 2022 in connection with the voluntary public tender offer by Schema Alfa S.p.A. for all of the shares of Mundys S.p.A., pursuant to which such funds obtained a minority non-controlling interest in Mundys S.p.A. Mundys S.p.A. owns and controls Aeroporti di Roma S.p.A. (“ADR”), an operator of airports in Italy including Leonardo da Vinci-Fiumicino Airport. Iran Air has historically operated periodic flights to and from Leonardo da Vinci-Fiumicino Airport as authorized, from time to time, by an aviation-related bilateral agreement between Italy and Iran, scheduled in compliance with European Regulation 95/93, and approved by the Italian Civil Aviation Authority. ADR, as airport operator, is under a mandatory obligation to provide airport services to all air carriers (including Iran Air) authorized by the applicable Italian authority. The relevant turnover attributable to these activities (whose consideration is calculated on the basis of general tariffs determined by such independent Italian authority) in the quarter ended June 30, 2023 was less than €50,000. Mundys S.p.A. does not track profits specifically attributable to these activities.”

 

v3.23.2

N-2	6 Months Ended
	Jun. 30, 2023 $ / shares shares
Cover [Abstract]
Entity Central Index Key	0001504234
Amendment Flag	false
Entity Inv Company Type	N-2
Document Type	N-CSRS
Entity Registrant Name	Blackstone Long-Short Credit Income Fund
General Description of Registrant [Abstract]
Investment Objectives and Practices [Text Block]	BGX’s primary investment objective is to provide current income, with a secondary objective of capital appreciation. BGX seeks to achieve its investment objectives by employing a dynamic long-short strategy in a diversified portfolio of loans and fixed-income instruments of predominantly U.S. corporate issuers, including first- and second-lien secured loans (“Secured Loans”) and high-yield corporate debt securities of varying maturities. BGX’s short positions, either directly or through the use of derivatives, may total up to 30% of such Fund’s net assets.   Senior Loans, Secured Loans and Senior Secured Loans are referred to collectively as “Loans” throughout the Notes to Financial Statements.
Latest Share Price | $ / shares	$ 11.34
Latest NAV | $ / shares	$ 12.91
Preferred Shares [Member]
Capital Stock, Long-Term Debt, and Other Securities [Abstract]
Outstanding Security, Title [Text Block]	preferred shares
Outstanding Security, Authorized [Shares] | shares	20,000
Common Shares [Member]
Capital Stock, Long-Term Debt, and Other Securities [Abstract]
Outstanding Security, Title [Text Block]	COMMON SHARES
Outstanding Security, Authorized [Shares] | shares	12,708,275

---