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The Blackstone Group L.P. (NYSE:BX): Will Sell $1 Billion Of Securities In Association With Deutsche Bank AG (USA) (NYSE:DB)

Boston, MA 05/08/2014 (wallstreetpr) – The Blackstone Group L.P. (NYSE:BX) is soon going to opt for plan sale of $1 billion in association with Deutsche Bank AG (USA) (NYSE:DB). It will sell $1 billion of securities tied with the home bonds. It will be a huge plan sale till this time. Blackstone holds a dominant position as the largest U.S. landlord of single family homes.

The huge sale

The planned sale of $1 billion will generate a lot more interest in the industry. It is the fourth offering of the rental home bonds in this month. Last time, Blackstone came with $479 million issue of sale was in the month of October 2013.  Apart from Blackstone, American Homes 4 Rent (NYSE:AMH) came with $482.7 million bond in the same month. It is the second largest landlord in the US. It will also sell the bonds backed by it other rental properties in many states like Texas and Florida. Colony American Homes Inc (NYSE:CAHS) opted for a bond sale amounting to $513.6 million in last month. Deutsche Bank is planning to initiate marketing the debt to investors by next month.

The use of proceeds

The Blackstone Group L.P. (NYSE:BX) and the other players are planning to use part of the proceeds to fund additional acquisitions. The companies are looking for new ways to spread the business in newer areas. The company is taking calculated approach to expand its horizons. Blackstone has turned to the debt market to generate more of the capital.  The funds will be used to buy the houses. The main aim is to enhance the returns by bringing in the extra leverage to the properties purchased in cash.  The difference between the Blackstone deal and the AMH deal is the region. AMH is targeting those regions that were resilient to the volatility during the crisis. It is taking more of a conservative approach.

Published by Alan Masterson

Alan has over 25 years of trading experience in the U.S. equity markets. He began his career in finance working on a program trading desk specializing in over-the-counter stocks. His career progressed from that point to his current position as senior trader on an institutional trading desk. In the evenings, Alan teaches economics at a local community college. He has contributed articles to various publications over the last six years, including feature articles for an economics magazine and various financial blogs. You may contact Alan via his email (alanmasterson@wallstreetpr.com) or his Google+ page (https://plus.google.com/103338576216002376250).

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