A publicly traded private credit vehicle managed by Blackstone has priced a $400m bond due in 2029 at a yield of 2 percentage points above US Treasuries, according to Bloomberg.

The bond, issued by Blackstone Secured Lending Fund, will use proceeds for general corporate purposes. Initial price discussions were around 2.25 percentage points above Treasuries, before tightening to 2 percentage points.

The transaction comes one day after the fund disclosed further markdowns in one of its largest holdings, a loan to software company Medallia, which is backed by Thoma Bravo. Blackstone reduced the loan’s valuation to approximately 78 cents on the dollar, down from 87 cents last June.

The wider spread on the 2029 note contrasts with the fund’s February and October 2025 five-year bond sales, which priced at spreads of around 1.5 percentage points. The adjustment reflects heightened investor caution toward software-linked credit exposure.

Despite sector volatility, Blackstone Secured Lending Fund reported a 9.6% net return last year, compared with a 5.5% gain for a Bloomberg index of leveraged loans.

Private credit markets have faced increased scrutiny in recent weeks as concerns around artificial intelligence disruption and software credit quality triggered broader selling across leveraged finance. The $400m issuance was one of nine US investment-grade transactions on the day, totalling $8.35bn.

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