StepStone Group Issues $175 Million Senior Notes due 2029 in Private Placement

StepStone Group Inc., a leading global private markets investment firm, announced on October 22, 2024, that its operating subsidiary, StepStone Group LP, has issued $175 million aggregate principal amount of its 5.52% Series A senior notes due on October 22, 2029. This issuance was made pursuant to a note purchase agreement entered on the same date, in a private placement exempt from registration under the Securities Act.

The senior notes will bear interest at a rate of 5.52% and will be payable semi-annually on April 22 and October 22 of each year, starting from April 22, 2025. The notes are set to mature on October 22, 2029. StepStone Group intends to utilize the net proceeds from this issuance for general corporate purposes, including investments, debt repayments, and distributions.

Under the terms of the agreement, StepStone Group has the option to prepay the notes partially or in full at any time. If a change of control occurs, the company will be obligated to offer to repurchase the notes from holders at a specified price.

Furthermore, the note purchase agreement includes various covenants such as restrictions on leverage ratios, requirements for Fee Paying Assets Under Management, obligations related to Management Fees, limitations on incurring certain secured indebtedness, and other customary clauses. The agreement also outlines events of default, which if triggered, could lead to the acceleration of payment obligations.

It is important to note that the description provided in this report is not exhaustive and is subject to the full text of the Note Purchase Agreement, which has been filed as Exhibit 10.1 to the Current Report on Form 8-K.

The issuance of these senior notes represents StepStone Group’s strategic approach to capital management and its commitment to supporting its growth objectives while maintaining financial discipline.

This press release is intended for informational purposes only and does not constitute financial advice. Investors are encouraged to review the complete terms of the transaction outlined in the Exhibit filings submitted with the Securities and Exchange Commission.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read StepStone Group’s 8K filing here.

StepStone Group Company Profile

StepStone Group Inc is a private equity and venture capital firm specializing in direct, fund of funds, secondary direct, and secondary indirect investments. For direct investment, it seeks to invest in private debt, venture debt, incubation, mezzanine, distressed/vulture, seed/startup, early venture, mid venture, late venture, emerging growth, later stage, turnaround, growth capital, industry consolidation, recapitalization, buyout investments in mature and middle market companies.