Blackstone (BX) to Reduce SeaWorld Stake

Shares of The Blackstone Group L.P. (BX) closed down -0.80 or -2.36 percent to $33.12 per share on Monday. The company disclosed through a prospectus late Monday that they would be selling an additional 15 million shares of their SeaWorld Entertainment SEAS stake in a secondary offering. SeaWorld stock closed at $31.98 per share, down -1.19 or -3.59 percent in Mondayâ s regular trading session.

New York City based The Blackstone Group L.P. is a multinational private equity, asset management firm and investment banker, and the largest alternative investment company in the world. The group specializes in managing private equity and hedge fund investment strategies and had total assets in excess of $29.7 billion in 2013. Blackstoneâ s foreign offices are located in Beijing, Dubai, Dusseldorf, London, Mumbai, Paris, Shanghai and Sydney. Orlando, Florida based SeaWorld Entertainment is the holding company for SeaWorld, which runs eleven theme parks in the United States and was formerly a subsidiary of Anheuser-Busch (BUD). The subsidiary was sold by Anheuser-Busch in 2009 to Blackstone for $2.3 billion. The deal is worth approximately $480 million at SeaWorldâ s Mondayâ s closing price of $31.98. With the company initially valued at $2.3 billion in 2009, Blackstone is taking profits on some of the shares it bought from Anheuser-Busch. SeaWorld stock initially sold for $27 per share in its initial public offering. The offering of 15 million shares will be underwritten by JP Morgan Chase (JPM) and Goldman Sachs (GS), and will leave Blackstone with roughly a 25 percent stake in SeaWorld. Blackstone currently holds 42.8 percent of SeaWorld. In addition, the underwriters of the deal will be given an option for the purchase of additional shares, which, if exercised, would leave Blackstone with a 22.5 percent stake. Also, SeaWorld is considering the purchase of 1.75 million of its own shares directly from Blackstone in a private transaction as part of the deal. Last December, Blackstone had a secondary offering of SeaWorld stock, which was priced at $30.00 per share. In that offering, SeaWorld purchased 1.5 million of its own shares. Blackstone, the first private equity firm to offer their stock for trading, had their initial public offering in 2007 at $31.00 per share. After its offering, the economy collapsed and shares dropped -90 percent to $3.00 per share in early 2009. Since then, the stock has gained tenfold and is back to its initial offering price, as of Mondayâ s close. SeaWorld stock has recovered from a selloff after the release of the movie â

Published on Mar 25, 2014
By Jay Hawk
Jay Hawk
Jay Hawk enjoyed a 12-year professional financial markets career incorporating extensive first hand futures and options experience obtained by trading in the stock, commodity and forex markets on U.S. exchanges. Since retiring as a full-time financial market professional, he has been actively trading stock, commodities, forex and options for his own account and managing funds for others, as well as writing financial market commentary and educational articles.

Copyrighted 2020. Content published with author's permission.

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