could be more dividends coming from this transaction
These bonds allow a transfer of risk from Blackstone partners to bondholders. If renters of these $500 million homes fail to meet payments, bondholders suffer, and declining home prices will impact their recovery of principal. Blackstone has not stated what it will do with the $500 million it raises. It can use some of the funds to pay dividends to partners and even use some to buy new homes to rent out and later securitize. However, it is clear BX is shifting risk from its investors to bondholders when it comes to the value of its rental-home unit.