12.	Borrowings

On April 10, 2019, Blackstone, through its indirect subsidiary Blackstone Holdings Finance Co. L.L.C. (the “Issuer”), issued

€

600

million aggregate principal amount of Senior Notes due April 10, 2029 (the “2029 Notes”). The 2029 Notes have an interest rate of

1.500

% per annum, accruing from April 10, 2019. Interest on the 2029 Notes is payable annually in arrears on April 10 of each year, commencing on April 10, 2020. The 2029 Notes will be fully and unconditionally guaranteed (the “Guarantees”), jointly and severally, by The Blackstone Group L.P., Blackstone Holdings I L.P., Blackstone Holdings AI L.P., Blackstone Holdings II L.P., Blackstone Holdings III L.P. and Blackstone Holdings IV L.P. (the “Guarantors”). The Guarantees are unsecured and unsubordinated obligations of the Guarantors. Third party costs directly related to the issuance of the 2029 Notes have been capitalized and are being amortized over the life of the 2029 Notes.

The following table presents the general characteristics of each of our notes, as well as their carrying value and fair value. The notes are included in Loans Payable within the Condensed Consolidated Statements of Financial Condition. All of the notes were issued at a discount. All of the notes accrue interest from the issue date thereof and all pay interest in arrears on a semi-annual basis or annual basis as indicated by their respective interest payment dates.


	June 30, 2019				December 31, 2018
	Carrying		Fair		Carrying		Fair
Senior Notes	Value		Value (a)		Value		Value (a)
5.875%, Due 3/15/2021	$	399,174	$	422,160	$	398,947	$	421,720
4.750%, Due 2/15/2023		395,700		429,440		395,166		417,600
2.000%, Due 5/19/2025		336,883		367,462		339,959		352,197
1.000%, Due 10/5/2026		673,113		687,293		679,193		647,564
3.150%, Due 10/2/2027		296,880		297,630		296,717		285,030
1.500%, Due 4/10/2029		676,634		705,990		—		—
6.250%, Due 8/15/2042		238,328		314,725		238,221		289,225
5.000%, Due 6/15/2044		488,856		568,500		488,747		490,150
4.450%, Due 7/15/2045		344,097		370,300		344,038		329,770
4.000%, Due 10/2/2047		290,252		294,690		290,163		262,800

	$	4,139,917	$	4,458,190	$	3,471,151	$	3,496,056

(a)	Fair value is determined by broker quote and these notes would be classified as Level II within the fair value hierarchy.

Included within Loans Payable and Due to Affiliates within the Condensed Consolidated Statements of Financial Condition are amounts due to holders of debt securities issued by Blackstone’s consolidated CLO vehicles. Borrowings through the consolidated CLO vehicles consisted of the following:

June 30, 2019

December 31, 2018

Weighted-

Average

Weighted-

Average

Remaining

Average

Remaining

Borrowing

Interest

Maturity in

Borrowing

Interest

Maturity in

Outstanding

Rate

Years

Outstanding

Rate

Years

Senior Secured Notes

6,527,175

4.13%

6.2

6,531,550

4.20%

7.5

Subordinated Notes

321,866

(a)

N/A

331,735

(a)

N/A

6,849,041

6,863,285

(a)	The Subordinated Notes do not have contractual interest rates but instead receive distributions from the excess cash flows of the CLO vehicles.

Senior Secured Notes and Subordinated Notes comprise the following amounts:


	June 30, 2019						December 31, 2018
			Amounts Due to Non-						Amounts Due to Non-
			Consolidated Affiliates						Consolidated Affiliates
			Borrowing						Borrowing
	Fair Value		Outstanding		Fair Value		Fair Value		Outstanding		Fair Value
Senior Secured Notes	$	6,519,453	$	42,750	$	45,243	$	6,476,434	$	3,250	$	3,201
Subordinated Notes		111,270		81,790		49,575		60,289		111,659		52,811

	$	6,630,723	$	124,540	$	94,818	$	6,536,723	$	114,909	$	56,012

The Loans Payable of the consolidated CLO vehicles are collateralized by assets held by each respective CLO vehicle and assets of one vehicle may not be used to satisfy the liabilities of another. This collateral consisted of Cash, Corporate Loans, Corporate Bonds and other securities. As of June 30, 2019 and December 31, 2018, the fair value of the consolidated CLO assets was $7.3 billion and $7.1 billion, respectively.

Scheduled principal payments for borrowings as of June 30, 2019 were as follows:


			Blackstone Fund
	Operating		Facilities/CLO		Total
	Borrowings		Vehicles		Borrowings
2019	$	—	$	316	$	316
2020		—		—		—
2021		400,000		—		400,000
2022		—		—		—
2023		400,000		—		400,000
Thereafter		3,405,950		6,849,041		10,254,991

	$	4,205,950	$	6,849,357	$	11,055,307