<SEC-DOCUMENT>0001193125-19-319977.txt : 20200521
<SEC-HEADER>0001193125-19-319977.hdr.sgml : 20200521
<ACCEPTANCE-DATETIME>20191220094903
<PRIVATE-TO-PUBLIC>
ACCESSION NUMBER:		0001193125-19-319977
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20191220

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			Blackstone / GSO Senior Floating Rate Term Fund
		CENTRAL INDEX KEY:			0001486298
		IRS NUMBER:				272267165

	FILING VALUES:
		FORM TYPE:		CORRESP

	BUSINESS ADDRESS:	
		STREET 1:		C/O GSO CAPITAL PARTNERS LP
		STREET 2:		345 PARK AVE.
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10154
		BUSINESS PHONE:		212-503-2100

	MAIL ADDRESS:	
		STREET 1:		C/O GSO CAPITAL PARTNERS LP
		STREET 2:		345 PARK AVE.
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10154
</SEC-HEADER>
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<TYPE>CORRESP
<SEQUENCE>1
<FILENAME>filename1.htm
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<TITLE>Response Letter</TITLE>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">December&nbsp;20, 2019 </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><U>VIA EDGAR AND EMAIL </U></P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Securities and Exchange Commission
</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Division of Investment Management </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">100 F Street, N.E. </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Washington, D.C. 20549 </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Attn.: Lisa N. Larkin </P>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><B>Re:</B></TD>
<TD ALIGN="left" VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman; " ALIGN="left"><B>Blackstone / GSO Senior Floating Rate Term Fund </B></P></TD></TR></TABLE>
<P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman"><B><U>Preliminary Proxy Statement on Form PRE14A, File <FONT STYLE="white-space:nowrap">No.&nbsp;811-22393</FONT> </U></B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Ladies and Gentlemen: </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">On behalf of Blackstone /
GSO Floating Senior Floating Rate Term Fund (the &#147;Fund&#148;), we are providing the following responses to comments received by telephone from the staff (the &#147;Staff&#148;) of the Securities and Exchange Commission (the
&#147;Commission&#148;) on December&nbsp;11, 2019, relating to the preliminary proxy statement. Please note that all page numbers in our responses are references to the page numbers of the preliminary proxy statement. All capitalized terms used but
not defined in this letter have the meanings given to them in the preliminary proxy statement. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B><U>GENERAL </U></B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><I>1. Please explain supplementally why having &#147;term&#148; in the Fund&#146;s name is not misleading if the Fund can continue to extend its term
indefinitely. </I></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">In response to the Staff&#146;s comment, the Fund notes that it has a limited term structure with a set dissolution
date, which is currently May&nbsp;31, 2022. The Charter allows the Fund to extend its dissolution date with the approval of a majority of the Board and a Majority Shareholder Vote (which is defined in the Charter to be &#147;a majority of the
outstanding voting securities&#148; (as such term is defined in the Investment Company Act of 1940, as amended)). Absent shareholder approval, the Board cannot extend its term of existence. Because the Shareholders have discretion over whether to
extend the term of the Fund, the Fund believes having &#147;term&#148; in the Fund&#146;s name is appropriate and not misleading. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><I>2. Pursuant to the
requirement under Item 3 under Schedule 14A, please include a discussion on whether there are appraisal rights. </I></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">In response to the
Staff&#146;s comment, the Fund proposes to add the following disclosure after &#147;Shareholder Communications with Board of Trustees&#148;: </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">&#147;<B>No Dissenters&#146; Rights </B> </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; text-indent:4%; font-size:10pt; font-family:Times New Roman">Shareholders do not have appraisal or similar rights of dissenters with respect to the Proposals.&#148; </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">1 </P>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B><U>PRELIMINARY PROXY STATEMENT </U></B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>II. Proposal 2: Extension of the Fund&#146;s Term </B></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><I>3.
Under &#147;Potential Future Offerings&#148; on page 6, the Fund states that it does not currently anticipate pursuing a Rights Offering and describes the Share Repurchase Program under &#147;The Share Repurchase Program&#148; thereafter. Please add
disclosure explaining why the Rights Offering did not go forward and how the Share Repurchase Program is a more appropriate approach for the Fund or clarify that the Rights Offering and the Share Repurchase Program are not related. </I></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">In response to the Staff&#146;s comment, the Fund proposes to revise the disclosure in &#147;Potential Future Offerings&#148; as set forth
below: </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">&#147;On January&nbsp;19, 2018,<B> </B>the Fund filed an initial registration statement with the Securities and Exchange Commission
(the &#147;<B>SEC</B>&#148;) relating to the offering of additional common shares of the Fund pursuant to a transferable rights offering (the &#147;<B>Rights Offering</B>&#148;). <U>Due to current market conditions, t</U><STRIKE>T</STRIKE>he Fund
currently does not anticipate pursuing the Rights Offering.&#148; </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">The Fund supplementally confirms that the Rights Offering and the Share
Repurchase Program are not related and proposes to move the &#147;Potential Future Offerings&#148; disclosure to after the &#147;The Fund&#146;s Investment Objectives and Strategies.&#148; </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><I>4. For the third bullet point under &#147;The Board&#146;s and the Adviser&#146;s Rationale for the Proposals&#148; on page 7,&nbsp;please delete the term
&#147;high&#148; or explain why the term is appropriate. </I></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">In response to the Staff&#146;s comment, the Fund has revised the third
bullet point as set forth below: </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">&#147;Continued Opportunity for <STRIKE>High </STRIKE><U>Increased</U> Portfolio Yields: In connection
with the Fund&#146;s term extension in 2017, the Adviser and ALPS reduced the fees <U>they each </U>charged to the Fund (&#147;<B>Fee Reductions</B>&#148;). The Fee Reductions resulted in an increased portfolio yield for the Fund, compared to the
yield if there had been no Fee Reductions. For the Fund&#146;s extended term resulting from the proposed Term Extension, the Management Fee and Administrator Fee would remain at the reduced rates, thereby continuing to result in a higher portfolio
yield for the Fund than if the <STRIKE>higher </STRIKE>original fees were in effect.&#148; </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><I>5. Under &#147;The Board&#146;s and the Adviser&#146;s
Rationale for the Proposals&#148; on page 7, please address whether the Board considered risks related to the LIBOR transition and its conclusion, if applicable. </I></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">In response to the Staff&#146;s comment, the Adviser has reviewed risks related to the LIBOR transition with the Board as part of the
Board&#146;s general oversight of the Fund&#146;s business and affairs, but the Board did not separately consider the LIBOR transition in connection with the Proposals. In this regard, we note the Fund&#146;s current term runs through May 2022,
which is after the proposed discontinuance of LIBOR. Accordingly, the Fund believes its current disclosure is adequate. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">2 </P>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><I>6. Under &#147;Risks of Investing in the Fund&#148; on page 8, please add LIBOR risk disclosure
addressing the LIBOR transition. </I></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">In response to the Staff&#146;s comment, the Fund proposes to add the following disclosure in
&#147;Risks of Investing in the Fund&#148;: </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">&#147;<B>LIBOR Risk. </B>Instruments in which the Fund invests may pay interest at floating
rates based on London-Interbank Offered Rate (&#147;LIBOR&#148;) or may be subject to interest caps or floors based on LIBOR. The Fund and issuers of instruments in which the Fund invests may also obtain financing at floating rates based on LIBOR.
The underlying collateral of collateralized loan obligations in which the Fund invests may pay interest at floating rates based on LIBOR. Derivative instruments utilized by the Fund and/or issuers of instruments in which the Fund may invest may also
reference LIBOR. Regulators and <FONT STYLE="white-space:nowrap">law-enforcement</FONT> agencies from a number of governments, including entities in the United States, Japan, Canada and the United Kingdom, have conducted or are conducting civil and
criminal investigations into whether the banks that contribute to the British Bankers&#146; Association (the &#147;BBA&#148;) in connection with the calculation of daily LIBOR may have been manipulating or attempting to manipulate LIBOR. Several
financial institutions have reached settlements with the U.S. Commodities Futures Trading Commission, the U.S. Department of Justice Fraud Section and the United Kingdom Financial Conduct Authority in connection with investigations by such
authorities into submissions made by such financial institutions to the bodies that set LIBOR and other interbank offered rates. Additional investigations remain ongoing with respect to other major banks. There can be no assurance that there will
not be additional admissions or findings of rate-setting manipulation or that manipulations of LIBOR or other similar interbank offered rates will not be shown to have occurred. ICE Benchmark Administration Limited assumed the role of LIBOR
administrator from the BBA on February&nbsp;1, 2014. Any new administrator of LIBOR may make methodological changes to the way in which LIBOR is calculated or may alter, discontinue or suspend calculation or dissemination of LIBOR. Additional
findings of manipulation may decrease the confidence of the market in LIBOR and lead market participants to look for alternative, <FONT STYLE="white-space:nowrap">non-LIBOR</FONT> based types of financing, such as fixed rate loans or bonds or
floating rate loans based on <FONT STYLE="white-space:nowrap">non-LIBOR</FONT> indices. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">On July&nbsp;27, 2017, the United Kingdom&#146;s
Financial Conduct Authority, which regulates&nbsp;LIBOR, announced that it intends to phase out&nbsp;LIBOR&nbsp;by the end of&nbsp;2021. It is expected that a number of private-sector banks currently reporting information used to set LIBOR will stop
doing so after 2021 when their current reporting commitment ends, which could either cause LIBOR to stop publication immediately or cause LIBOR&#146;s regulator to determine that its quality has degraded to the degree that it is no longer
representative of its underlying market. The U.S. Federal Reserve, in conjunction with the Alternative Reference Rates Committee, a steering committee comprised of large U.S. financial institutions, is considering replacing U.S.
dollar&nbsp;LIBOR&nbsp;with a new index calculated by short-term repurchase agreements, backed by U.S. Treasury securities. Abandonment of or modifications to LIBOR could have adverse impacts and represent a significant risk on newly issued
financial instruments and existing financial instruments which reference LIBOR. While some instruments may contemplate a scenario where LIBOR is no longer available by providing for an alternative rate setting methodology, not all instruments may
have such provisions and there are significant uncertainty regarding the effectiveness of any such alternative methodologies. Abandonment of or modifications to LIBOR could lead to significant short-term and long-term uncertainty and market
instability and the extent to which that may impact the Fund may vary depending on various factors, which include, but are not limited to: (i)&nbsp;existing fallback or termination provisions in individual contracts and (ii)&nbsp;whether, how, and
when industry participants develop and adopt new successor reference rates and/or fallbacks for both legacy and new instruments. In addition, the transition to a successor rate could potentially cause (i)&nbsp;increased volatility or illiquidity in
markets for instruments that currently rely on LIBOR, (ii)&nbsp;a reduction in the value of certain instruments held by the Fund, or (iii)&nbsp;reduced effectiveness of related Fund transactions, such as hedging. It remains uncertain how such
changes would be implemented and the effects such changes would have on the Fund, issuers of instruments in which the Fund invests and financial markets generally.&#148; </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">3 </P>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><I>7. Under &#147;Board&#146;s Consideration of the Proposals&#148; on page 9, please address the factors
the Board considered in deciding that the revised investment advisory fee was reasonable, if applicable. </I></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">In response to the
Staff&#146;s comment, the Fund proposes adding the following disclosure: </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">&#147;The Board&#146;s consideration and approval of the
Proposals reflected its most recent annual evaluation in May 2019 of the Fund&#146;s investment advisory contract with the Adviser, including the Reduced Management Fee payable thereunder and, if the Proposals are approved, the Board will have the
opportunity to evaluate, and will be required to evaluate, the Fund&#146;s investment advisory arrangements, including the investment advisory fees payable thereunder, annually.&#148; </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><I>8. For the seventh bullet point under &#147;Board&#146;s Consideration of the Proposals&#148; on page 10, please explain supplementally the basis of the
Adviser&#146;s belief that the Proposals are not likely to have a significant impact on the Fund&#146;s market price to NAV discount/premium. </I></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">In response to the Staff&#146;s comment, the Adviser believes that the shareholder approval of the Proposals, and their subsequent
implementation, are not likely to have a significant impact on the Fund&#146;s market price to NAV discount/premium. Based on the Adviser&#146;s analysis of other listed <FONT STYLE="white-space:nowrap">closed-end</FONT> funds with finite terms, it
believes that having a finite term is beneficial for a fund&#146;s discount/premium, but (i)&nbsp;there is not a significant correlation between a term fund&#146;s trading premium/discount and its remaining length of term and (ii)&nbsp;there is a
stronger correlation between a term fund&#146;s trading premium/discount and its dividend yield. </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P><center>
<P STYLE="line-height:6.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1.00pt solid #000000;width:21%">&nbsp;</P></center> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Please call Ben
Wells <FONT STYLE="white-space:nowrap"><FONT STYLE="white-space:nowrap">(212-455-2516)</FONT></FONT> or me <FONT STYLE="white-space:nowrap"><FONT STYLE="white-space:nowrap">(202-636-5543)</FONT></FONT> with any questions you may have regarding this
filing or if you wish to discuss the above responses. </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P><DIV ALIGN="right">
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<TD VALIGN="top">Very truly yours,</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">/s/ Rajib Chanda</TD></TR>
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