Blackstone/GSO Announces Three New CLOs

The Blackstone Group (NYSE:BX) today announced the closing of three

newly created collateralized loan obligation funds ("CLOs")

totaling $1.3 billion, all created over the past month. In March, the

firm merged its pre-existing CLO management group with the team from its

newly acquired GSO Capital Partners. The 35 person CLO team maintains

offices in New York and London.
With this new capital, the combined CLO group manages $14.0 billion

across 26 funds in the US and Europe. The new CLOs closed by the group

were Columbus Park ($400 million) on April 3rd, Riverside Park ($500

million) on April 15th and Tribeca Park ($400 million) on May 1st.
According to Standard and Poors´, during the first three months of 2007

48 CLOs were created with total volume of $24.8 billion, compared to

only 11 new CLOs with aggregate volume of $6.0 billion in the first

three months of 2008, a drop of 76%. While all aspects of the credit

markets have experienced a degree of dislocation, Blackstone believes

the limiting factor in creating new CLOs is most directly related to the

lack of supply for the CLOs´ most senior

capital tranche, AAA-rated liabilities. These liabilities represent

approximately 70% to 75% of a generic CLO´s

capital structure and recently have been available to only the most

highly regarded asset managers.
"The market´s

positive reception to our recent offerings demonstrates the growth

potential for our CLO business", said Bennett

Goodman, Senior Managing Director and head of Blackstone´s

GSO division. Goodman continued, "These

investment vehicles are very different from most CLOs issued recently.

They have been established to buy high quality loan assets with an

expectation for stable returns to all investors in the CLO´s

capital structure. This is in contrast to the majority of CLOs issued

since last summer, which were established primarily to move risky assets

off banks´ balance sheets."
About The Blackstone Group
The Blackstone Group L.P. is a leading global alternative asset manager

and provider of financial advisory services. Its alternative asset

management businesses include the management of corporate private equity

funds, real estate funds, funds of hedge funds, mezzanine funds, senior

debt vehicles, proprietary hedge funds and closed-end mutual funds. The

Blackstone Group L.P. also provides various financial advisory services

including corporate and mergers and acquisitions advisory, restructuring

and reorganization advisory and fund placement services. Further

information is available at www.blackstone.com