Blackstone's private credit fund priced a $400 million bond due in 2029 at 2 percentage points above US Treasuries, after initial discussions at 2.25 points. The Blackstone Secured Lending Fund will use proceeds for general corporate purposes, reflecting current market conditions for private credit instruments.

The pricing follows Blackstone's markdown of a loan to software company Medallia to 78 cents on the dollar, down from 87 cents last June. This increased spread contrasts with Blackstone's previous bond sales at 1.5 percentage points, indicating heightened investor caution toward software-linked credit exposure amid sector volatility.

Despite these challenges, Blackstone Secured Lending Fund delivered a 9.6% net return last year, outperforming a Bloomberg leveraged loans index that gained 5.5%. The $400m issuance was one of nine investment-grade transactions totaling $8.35bn, as private credit markets face increased scrutiny amid AI disruption concerns.