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The Blackstone Group L.P. Message Board

  • billlewisiv billlewisiv Apr 26, 2012 9:36 AM Flag

    7% yield, anyone?

    Company is sitting on a mountain of cash, the divvy should be safe, no? At today's price, you get 7% from BX...

    There must be some good aspect to this ridiculous swoon.

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    • Looks like we are close to even today. Hopefully this is the day that the punishmnet stops. Granted I would not mind if it stays down until I get some Dividends into my account to buy more.

    • You miss the point.....they have a MOUNTAIN of DEBT.....10x greater than their cash!

      • 1 Reply to play_tow
      • Not so - the Yahoo! numbers might be technically correct on a balance sheet but are not economically correct with respect to a share/unit of BX.

        The Yahoo! numbers include 9+ billion in "Loans Payable" which are related to CLO's and other investment vehicles owned/managed by the firm, and such debt is non-recourse relative to BX - the investments will either win or lose, but BX doesn't owe the 9B. (It would be like saying that you have $1billion in debt personally because you own a share/unit of BX).

        From the latest press release:
        CAPITAL AND LIQUIDITY
        As of March 31, 2012, Blackstone had $1.1 billion in cash, Treasury cash management strategies and
        liquid Blackstone funds.

        Long-term debt totaled $1.0 billion in borrowings from the 2010 and 2009 bond issuances.

        Blackstone has no borrowings outstanding against its $1 billion revolving credit facility, which expires in April 2016.

        BX is actually very (very) conservatively managed itself, but manages leveraged investments for others.

 
BX
41.85+0.70(+1.70%)Apr 17 4:03 PMEDT