Document:

FS Energy and Power Fund 8-K

 

Exhibit
10.2

 

 

CONSENT
AND THIRD AMENDMENT TO

TERM
LOAN AND SECURITY AGREEMENT

This
CONSENT AND THIRD AMENDMENT TO TERM LOAN AND SECURITY AGREEMENT, is made as of March 16, 2018 (this “Amendment”),
among FOXFIELDS FUNDING LLC, a Delaware limited liability company (“Company”), FORTRESS CREDIT CO LLC, as Administrative
Agent for Lenders (“Administrative Agent”), and the Lenders signatory hereto.

WHEREAS,
the Company, Administrative Agent and the Lenders signatory thereto from time to time are party to that certain Term Loan
and Security Agreement, dated as of November 6, 2015 (as amended by (a) the First Amendment to Term Loan and Security Agreement,
dated as of November 25, 2015 and (b) the Second Amendment to Term Loan and Security Agreement, dated as of May 31, 2016, and
as the same may be further amended, restated, supplemented or otherwise modified from time to time, and as amended herein, the
“Loan Agreement;” capitalized terms used herein and not otherwise defined herein shall have the meanings ascribed
to such terms in the Loan Agreement), pursuant to which Lenders have extended to the Company certain Term Loans and other financial
accommodations;

WHEREAS,
the Company has requested that Administrative Agent and Lenders (a) consent to certain actions related to FSEP and the Company
and (b) make certain amendments to the Loan Agreement, as more fully-described herein; and

WHEREAS,
Administrative Agent and Lenders are willing to agree to such consents and amendments to the Loan Agreement on the terms and conditions
set forth herein;

NOW,
THEREFORE, in consideration of the foregoing premises, and other good and valuable consideration, the receipt and legal sufficiency
of which are hereby acknowledged, the parties hereto hereby agree as follows:

1.       

Consents
under the Loan Agreement. Subject to the satisfaction of the conditions set forth below, and the other conditions precedent
and conditions subsequent herein, and in reliance on the representations, warranties, covenants and agreements set forth in this
Agreement (including the effectiveness of the applicable amendments as set forth herein), Administrative Agent and Lenders do
hereby consent:

(a)       

on
and as of the date hereof, to (i) the termination of that certain Investment Sub-Advisory Agreement, dated April 28, 2011, between
FS Investment Advisor, LLC and GSO Capital Partners LP, (ii) GSO Capital Partners LP ceasing to be the “Sub-Advisor”
of FS Investment Advisor, LLC, and (iii) EIG Global Energy Partners, LLC and/or any one or more of its Affiliates providing certain
origination and investment servicing services to FSEP and/or FS Investment Advisor, LLC; and

    	 	 	 

    	 

    

 

(b)       

to
the extent such date occurs, on and as of the Investment Advisor Replacement Effective Date (as defined below), to (i) the termination
of that certain Investment Advisory and Administrative Services Agreement, dated April 28, 2011, between FSEP and FS Investment
Advisor, LLC and (ii) FS/EIG Advisor, LLC (the “Joint Advisor”) acting as the Investment Advisor to FSEP (and
replacing FS Investment Advisor, LLC in such capacity), as long as (I) the Joint Advisor is appointed by FSEP pursuant to an investment
advisory and administrative services agreement substantially similar in all material respects to the form of Investment Advisory
and Administrative Services Agreement between FSEP and the Joint Advisor attached hereto as Exhibit A (such agreement in
such form, the “Joint Advisor Agreement”), (II) the Joint Advisor is appointed on or after the date which is
the earlier of (x) the date which is 60 days after the shareholders of FSEP have approved the Joint Advisor Agreement or (y) any
date following the date on which the shareholders of FSEP have approved the Joint Advisor Agreement and the SEC has issued an
exemptive relief order, or an amendment to an existing exemptive relief order, to, among other things, permit FSEP to co-invest
in privately negotiated investment transactions with accounts managed by EIG Global Energy Partners, LLC and/or its Affiliates
(such date, if it occurs, the “Investment Advisor Replacement Effective Date”), and (III) the Joint Advisor
is owned and managed in accordance with the terms of a limited liability company (or other operating) agreement substantially
similar in all material respects to the form of FS/EIG Advisor, LLC Limited Liability Company Agreement most recently provided
to the Administrative Agent on or prior to the date hereof.

2.       

Amendments
to the Loan Agreement.  Subject to the satisfaction of the conditions set forth below, and the other conditions precedent
and conditions subsequent herein, and in reliance on the representations, warranties, covenants and agreements set forth in this
Agreement, the Loan Agreement is hereby amended as follows:

(a)       

on
and as of the date hereof, the Loan Agreement is hereby amended by:

(i)       

deleting
the reference to the number “$1,500,000,000” from the third line of Section 7.16(a)(i) thereof and inserting
a reference to the number “$1,700,000,000” in lieu thereof;

(ii)       

adding
the following new sub-clause (v) to the end of Section 7.16(a) thereof (immediately following the end of sub-clause
(iv) thereof):

,
or (v) FSEP and its Subsidiaries to have a ratio at any time of (A) tangible net worth (as calculated in accordance with GAAP)
to (B) Indebtedness which is recourse, and only to the extent of such recourse, to FSEP of less than 2.50:1.00.

(iii)       

deleting
Section 7.17 thereof in its entirety.

(b)       

on
and as of the Investment Advisor Replacement Effective Date, if it occurs, the Loan Agreement is hereby amended by:

(i)       

in
Section 1.01 of the Loan Agreement, deleting clause (b) of the definition of “Change of Control”
in its entirety and inserting the following in lieu thereof:

(b)       

FS/EIG
Advisor, LLC, a Delaware limited liability company, ceases to be (i) a registered “Investment Advisor” under the Investment
Advisers Act of 1940, as amended (a Person, in such capacity, an “Investment Advisor”), (ii) the Investment
Advisor for FSEP, or (iii) beneficially owned, controlled and managed as set forth in its Organizational Documents (including
changes to such ownership, control or management as contemplated therein), as the same are in effect on and as of the Investment
Advisor Replacement Effective Date (as defined in the Third Amendment); or

    	 	2	 

     

    

(ii)       

in
Section 1.01 of the Loan Agreement, adding the following defined term in the correct alphabetical order:

“Third
Amendment” means that certain Consent and Third Amendment to Term Loan and Security Agreement, dated as of March 16,
2018, among the Loan Parties, Administrative Agent and Lenders.

(iii)       

in
Section 9.01 of the Loan Agreement, deleting from clause (j) thereof sub-clause (ii) therefrom in its entirety
and inserting the following in lieu thereof:

(ii)       

that
certain Investment Advisory and Administrative Services Agreement, dated as of the Investment Advisor Replacement Effective Date
(as defined in the Third Amendment), between FSEP and FS/EIG Advisor, LLC ceases to be in full force and effect or shall have
been amended in any manner that is materially adverse to the Administrative Agent or any Lender; or

3.       

Acknowledgment.
Administrative Agent’s and Lenders’ agreement to the amendments, consents and agreements contained herein does not
and shall not create (nor shall FSEP, the Company or any other Loan Party rely upon the existence of or claim or assert that there
exists) any obligation of Administrative Agent or any Lender to consider or agree to any further amendments, consents or agreements.
In the event Administrative Agent and Lenders subsequently agree to consider any further amendments, consents or agreements, neither
the amendments, consents and agreements contained herein nor any other conduct of Administrative Agent or any Lender shall be
of any force or effect on Administrative Agent’s or any Lender’s consideration or decision with respect to any such
requested amendment, consent or agreement, and Administrative Agent and Lenders shall have no further obligation whatsoever to
consider or agree to further amendments, consents or agreements.

4.       

Representations,
Warranties, Covenants and Acknowledgments. To induce Administrative Agent and Lenders to enter into this Amendment:

(a)       

The
Company does hereby represent and warrant that, as of the date hereof and after giving effect hereto, (i) all of the representations
and warranties made or deemed to be made under the Loan Documents are true and correct in all material respects (provided,
that any representation or warranty that is qualified by materiality or by reference to Material Adverse Effect shall be true
and correct in all respects), except such representations and warranties which, by their express terms, are applicable only to
the Closing Date, (ii) there exists no Default or Event of Default under the Loan Agreement or any of the other Loan Documents,
(iii) the Company has the power and is duly authorized to enter into, deliver and perform this Amendment, and (iv) this Amendment
and each of the Loan Documents is the legal, valid and binding obligation of the Company enforceable against the Company in accordance
with its terms.

    	 	3	 

     

    

(b)       

The
Company does hereby reaffirm each of the agreements, covenants, and undertakings set forth in the Loan Agreement and each and
every other Loan Document executed in connection therewith or pursuant thereto, as amended and modified hereby, as if the Company
were making said agreements, covenants and undertakings on the date hereof.

(c)       

The
Company does hereby acknowledge and agree that no right of offset, defense, counterclaim, claim, cause of action or objection
in favor of the Company against Administrative Agent or any Lender exists arising out of or with respect to (i) the Obligations,
this Amendment, the Loan Agreement or any of the other Loan Documents, or (ii) any other documents now or heretofore evidencing,
securing or in any way relating to the foregoing.

(d)       

The
Company acknowledges and agrees that this Amendment shall be deemed a Loan Document for all purposes under the Loan Agreement.

5.       

Indemnification.
The Company and each other Loan Party hereby agree to indemnify and hold Administrative Agent, the Lenders, each Agent-Related
Person and each other Indemnitee in accordance with Section 12.05 of the Loan Agreement. The foregoing indemnity shall
survive the payment in full of the Obligations and the termination of this Amendment, the Loan Agreement and the other Loan Documents.

6.       

Conditions
Precedent. The effectiveness of this Amendment is subject to the following conditions precedent:

(a)       

Delivery
of Documents.

(i)       

On
or before the date hereof, the Company shall have delivered to Administrative Agent, all in form and substance acceptable to Administrative
Agent in its reasonable discretion, counterparts of this Amendment executed by each party hereto, together with counterparts of
an Acknowledgment and Consent, substantially in the form attached hereto; and

(ii)       

any
and all other documents reasonably requested by Administrative Agent.

(b)       

Accuracy
of Representations and Warranties. As of the date hereof and after giving effect hereto, all of the representations and warranties
made or deemed to be made in this Amendment and under the Loan Documents shall be true and correct in all material respects (provided,
that any representation or warranty that is qualified by materiality or by reference to Material Adverse Effect shall be true
and correct in all respects) as of the date of this Amendment, except such representations and warranties which, by their terms,
are applicable to a prior specific date or period.

(c)       

Expenses.
The Loan Parties shall have paid on or before the date hereof to Administrative Agent any and all outstanding fees and other charges
owing pursuant to Section 12.04 of the Loan Agreement, to the extent invoiced at least one (1) Business Day prior to the
date hereof.

    	 	4	 

     

    

7.       

Effect;
Relationship of Parties. Except as expressly amended hereby, the Loan Agreement shall be and remain in full force and
effect as written immediately prior to the execution of this Amendment, and shall constitute the legal, valid, binding and enforceable
obligations of the Company to Administrative Agent and each Lender. The relationship of Administrative Agent and Lenders, on the
one hand, and the Loan Parties, on the other hand, has been and shall continue to be, at all times, that of creditor and debtor
and not as joint venturers or partners. Nothing contained in this Amendment, any instrument, document or agreement delivered in
connection herewith or in the Loan Agreement or any of the other Loan Documents shall be deemed or construed to create a fiduciary
relationship between or among the parties.

8.       

Miscellaneous.
This Amendment may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of
which, when so executed and delivered, shall be deemed to be an original and all of which counterparts, taken together, shall
constitute but one and the same instrument. Delivery of an executed counterpart of a signature page to this Amendment by facsimile
or other electronic transmission shall be as effective as delivery of a manually executed counterpart of this Amendment. Any party
delivering an executed counterpart of this consent via facsimile or electronic mail shall also deliver a manually executed original
to Administrative Agent or its counsel, but the failure to do so does not and will not affect the validity, enforceability or
binding effect of this Amendment or result in a Default or Event of Default under any Loan Document. This Amendment shall be binding
upon and inure to the benefit of the successors and permitted assigns of the parties hereto. This Amendment shall be governed
by, and construed in accordance with, the laws of the State of New York without regard to conflict of laws principles (other than
Sections 5-1401 and 5-1402 of the New York General Obligations Law) thereof. This Amendment embodies the entire agreement
and understanding between the parties hereto with respect to the subject matter hereof and supersedes all prior oral or written
negotiations, agreements and understandings of the parties with respect to the subject matter hereof, except the agreements embodied
in the Loan Agreement and the other Loan Documents (as modified herein).

[Remainder
of Page Intentionally Blank]

    	 	5	 

     

    

 

IN
WITNESS WHEREOF, the Company, Administrative Agent and Lenders have caused this Amendment to be duly executed as of the date
first above written.

 

	 	FOXFIELDS FUNDING LLC,
	 	as
the Company
	 	 
	 	 
	 	By:	/s/ Edward T. Gallivan, Jr.	 
	 	Name:	Edward T. Gallivan, Jr.	 
	 	Title:	Chief Financial Officer

 

 

    	 	 	 

    	 

    

 

	 	FORTRESS CREDIT CO LLC,
	 	as
Administrative Agent
	 	 
	 	 
	 	By:	/s/ Scott Silvers	 
	 	Name:	Scott Silvers	 
	 	Title:	Authorized Signatory

 

	 	FORTRESS CREDIT OPPORTUNITIES V CLO LIMITED, as a Lender
	 	By:  FCO V CLO CM LLC, its collateral manager
	 	 
	 	 
	 	By:	/s/ Scott Silvers	 
	 	Name:	Scott Silvers	 
	 	Title:	Authorized Signatory

  

	 	FORTRESS CREDIT OPPORTUNITIES VI CLO LIMITED, as a Lender
	 	By:
FCO VI CLO CM LLC, its collateral manager
	 	 
	 	
	 	By: 	/s/ Scott Silvers	 
	 	Name:	Scott Silvers	 
		Title:	Authorized Signatory

 

	 	FORTRESS CREDIT OPPORTUNITIES VII CLO LIMITED, as a Lender
	 	By:
FCO VII CLO CM LLC, its collateral manager
	 	 
	 	 
	 	By: 	/s/ Scott Silvers	 
	 	Name:	Scott Silvers	 
	 	Title:	Authorized Signatory

 

	 	FORTRESS CREDIT OPPORTUNITIES IX CLO LIMITED, as a Lender
	 	By:
FCOD CLO Management LLC, its collateral manager
	 	 
	 	 
		By:	/s/ Scott Silvers	 
	 	Name:	Scott Silvers	 
	 	Title:	Authorized Signatory

 

	 	DBDB FUNDING LLC, as a Lender
	 	 
	 	 
	 	By:	/s/ Scott Silvers	 
	 	Name:	Scott Silvers	 
	 	Title:	Authorized Signatory

    	 	 	 

    	 

    

 

	 	ORIX FINANCE, LP, as a Lender
	 	By:
ORIX Corporate Capital Inc., its General Partner
	 	 
	 	By:	/s/ Mark Campbell	 
	 	Name:	Mark Campbell	 
	 	Title:	Authorized Representative

 

    	 	 	 

    	 

    

 

ACKNOWLEDGEMENT
AND CONSENT

Foxfields
Funding LLC, a Delaware limited liability company (“Company”), Fortress Credit Co LLC, a Delaware limited liability
company, as Administrative Agent (“Administrative Agent”), and certain lenders (the “Lenders”)
are party to that certain Term Loan and Security Agreement, dated November 6, 2015 (as amended, restated or otherwise modified
from time to time, the “Loan Agreement”), pursuant to which the Lenders have extended to Company certain Term
Loans and other financial accommodations.

In
connection with the Loan Agreement, FS Energy and Power Fund, a Delaware statutory trust (“FSEP”), executed
(i) that certain Guaranty, dated November 6, 2015, in favor of Administrative Agent (the “Guaranty”) and (ii)
that certain Pledge Agreement, dated November 6, 2015, by and between FSEP and Administrative Agent (the “Pledge Agreement”).

Company,
Administrative Agent and the Lenders are amending the Loan Agreement pursuant to that certain Consent and Third Amendment to Term
Loan and Security Agreement, dated as of March 16, 2018 (the “Loan Agreement Amendment”). FSEP desires to acknowledge
and consent to the Loan Agreement Amendment and reaffirm its obligations under the Guaranty and the Pledge Agreement.

In
connection with the foregoing, on March 16, 2018 (the “Effective Date”), FSEP hereby acknowledges and consents
to the Loan Agreement Amendment. Furthermore, FSEP agrees that the Guaranty and the Pledge Agreement remain in full force and
effect and continue to be the legal, valid and binding obligation of FSEP, enforceable against FSEP in accordance with its terms.

Delivery
of an executed counterpart of a signature page to this Acknowledgment and Consent by facsimile or other electronic transmission
shall be as effective as delivery of a manually executed counterpart of this Acknowledgment and Consent. This Acknowledgment and
Consent shall be binding upon and inure to the benefit of FSEP’s successors and permitted assigns. This Acknowledgment and
Consent shall be governed by, and construed in accordance with, the laws of the State of New York, without giving effect to any
choice of law or conflict of law provision or rule (whether of the State of New York or any other jurisdictions) that would cause
the application of the laws of any jurisdictions other than the State of New York. If any provision of this Acknowledgment and
Consent is prohibited by law or otherwise determined to be invalid or unenforceable by a court of competent jurisdiction, the
provision that would otherwise be prohibited, invalid or unenforceable shall be deemed amended to apply to the broadest extent
that it would be valid and enforceable, and the invalidity or unenforceability of such provision shall not affect the validity
of the remaining provisions of this Acknowledgment and Consent so long as this Acknowledgment and Consent as so modified continues
to express, without material change, the original intentions of the parties as to the subject matter hereof and the prohibited
nature, invalidity or unenforceability of the provision(s) in question does not substantially impair the expectations or obligations
of the parties or the practical realization of the benefits that would otherwise be conferred.

[Remainder
of Page Intentionally Blank]

    	 	 	 

    	 

    

 

IN
WITNESS WHEREOF, the undersigned has executed this Acknowledgement and Consent as of the Effective Date.

	 	FS ENERGY AND POWER FUND
	 	 
	 	 
	 	By:	/s/ Edward T. Gallivan, Jr.	 
	 	Name:	Edward T. Gallivan, Jr.	 
	 	Title:	Chief Financial Officer

 

    	 	 	 

    	 

    

 

EXHIBIT
A

Form
of Investment Advisory and Administrative Services Agreement

See
Attached.breit-ex41_1418.htm

Exhibit 4.1

BLACKSTONE REAL ESTATE INCOME TRUST, INC. 

Class T, S, D and I Share Repurchase Plan 

Effective as of March 14, 2018 

Definitions 

Class D shares – shall mean the shares of the Company’s common stock classified as Class D. 

Class I shares – shall mean the shares of the Company’s common stock classified as Class I. 

Class S shares – shall mean the shares of the Company’s common stock classified as Class S. 

Class T shares – shall mean the shares of the Company’s common stock classified as Class T. 

Company – shall mean Blackstone Real Estate Income Trust, Inc., a Maryland corporation. 

Dealer Manager – shall mean Blackstone Advisory Partners L.P. 

NAV – shall mean the net asset value of the Company or a class of its shares, as the context requires, determined in accordance with the Company’s valuation policies and procedures. 

Operating Partnership – shall mean BREIT Operating Partnership L.P. 

Operating Partnership units – shall mean limited partnership interests in the Operating Partnership. 

Special Limited Partner – shall mean BREIT Special Limited Partner L.L.C. 

Stockholders – shall mean the holders of Class T, Class S, Class D or Class I shares. 

Transaction Price – shall mean the repurchase price per share for each class of common stock, which shall be equal to the then-current offering price before applicable selling commissions and dealer manager fees. 

Share Repurchase Plan 

Stockholders may request that the Company repurchase shares of its common stock through their financial advisor or directly with the Company’s transfer agent. The procedures relating to the repurchase of shares of the Company’s common stock are as follows: 

	
 
	
• 
	
Certain broker-dealers require that their clients make repurchase requests through their broker-dealer, which may impact the time necessary to process such repurchase request. Stockholders should contact their broker-dealer first if they want to request the repurchase of their shares.

	
 
	
• 
	
Under this share repurchase plan, to the extent the Company chooses to repurchase shares in any particular month the Company will only repurchase shares as of the last calendar day of that month (a “Repurchase Date”). To have shares repurchased, a Stockholder’s repurchase request and required documentation must be received in good order by 4:00 p.m. (Eastern time) on the second to last business day of the applicable month. Settlements of share repurchases will be made within three business days of the Repurchase Date. The Company will begin this share repurchase plan in the first month of the first full calendar quarter following the conclusion of its escrow period. Repurchase requests received and processed by the Company’s transfer agent will be effected at a repurchase price equal to the Transaction Price on the applicable Repurchase Date (which will generally be equal to the Company’s prior month’s NAV per share), subject to any Early Repurchase Deduction (as defined below). 

 

 

	
 
	
•
	
A Stockholder may withdraw his or her repurchase request by notifying the transfer agent, directly or through the Stockholder’s financial intermediary, on our toll-free, automated telephone line, 844-702-1299. The line is open on each business day between the hours of 9:00 a.m. and 6:00 p.m. (Eastern time). Repurchase requests must be cancelled before 4:00 p.m. (Eastern time) on the last business day of the applicable month. 

	
 
	
•
	
If a repurchase request is received after 4:00 p.m. (Eastern time) on the second to last business day of the applicable month, the purchase order will be executed, if at all, on the next month’s Repurchase Date at the Transaction Price applicable to that month (subject to any Early Repurchase Deduction), unless such request is withdrawn prior to the repurchase. Repurchase requests received and processed by the Company’s transfer agent on a business day, but after the close of business on that day or on a day that is not a business day, will be deemed received on the next business day. 

	
 
	
•
	
Repurchase requests may be made by mail or by contacting a financial intermediary, both subject to certain conditions described in this share repurchase plan. If making a repurchase request by contacting the Stockholder’s financial intermediary, the Stockholder’s financial intermediary may require the Stockholder to provide certain documentation or information. If making a repurchase request by mail to the transfer agent, the Stockholder must complete and sign a repurchase authorization form, which can be found at the end of this share repurchase plan and which will also be available on our website, www.breit.com. Written requests should be sent to the transfer agent at the following address: 

DST Systems, Inc. 

PO Box 219349 

Kansas City, MO 64121-9349 

Overnight Address: 

DST Systems, Inc. 

430 W 7th St. Suite 219349 

Kansas City, MO 64105 

Toll Free Number: 844-702-1299 

Corporate investors and other non-individual entities must have an appropriate certification on file authorizing repurchases. A signature guarantee may be required. 

	
 
	
• 
	
For processed repurchases, Stockholders may request that repurchase proceeds are to be paid by mailed check provided that the check is mailed to an address on file with the transfer agent for at least 30 days. Stockholders should check with their broker-dealer that such payment may be made via check or wire transfer, as further described below.

	
 
	
•
	
Stockholders may also receive repurchase proceeds via wire transfer, provided that wiring instructions for their brokerage account or designated U.S. bank account are provided. For all repurchases paid via wire transfer, the funds will be wired to the account on file with the transfer agent or, upon instruction, to another financial institution provided that the Stockholder has made the necessary funds transfer arrangements. The customer service representative can provide detailed instructions on establishing funding arrangements and designating a bank or brokerage account on file. Funds will be wired only to U.S. financial institutions (ACH network members).  

	
 
	
•
	
A medallion signature guarantee may be required in certain circumstances described below. A medallion signature guarantee may be obtained from a domestic bank or trust company, broker-dealer, clearing agency, savings association or other financial institution which participates in a medallion program recognized by the Securities Transfer Association. The three recognized medallion programs are the 

 

	
 
		
Securities Transfer Agents Medallion Program, the Stock Exchanges Medallion Program and the New York Stock Exchange, Inc. Medallion Signature Program. Signature guarantees from financial institutions that are not participating in any of these medallion programs will not be accepted. A notary public cannot provide signature guarantees. The Company reserves the right to amend, waive or discontinue this policy at any time and establish other criteria for verifying the authenticity of any repurchase or transaction request. The Company may require a medallion signature guarantee if, among other reasons: (1) the amount of the repurchase request is over $500,000; (2) a Stockholder wishes to have repurchase proceeds transferred by wire to an account other than the designated bank or brokerage account on file for at least 30 days or sent to an address other than such Stockholder’s address of record for the past 30 days; or (3) the Company’s transfer agent cannot confirm a Stockholder’s identity or suspects fraudulent activity. 

	
 
	
•
	
If a Stockholder has made multiple purchases of shares of the Company’s common stock, any repurchase request will be processed on a first in/first out basis unless otherwise requested in the repurchase request. 

Minimum Account Repurchases 

In the event that any Stockholder fails to maintain the minimum balance of $500 of shares of the Company’s common stock, the Company may repurchase all of the shares held by that Stockholder at the repurchase price in effect on the date the Company determines that such Stockholder has failed to meet the minimum balance, less any Early Repurchase Deduction. Minimum account repurchases will apply even in the event that the failure to meet the minimum balance is caused solely by a decline in the Company’s NAV. Minimum account repurchases are subject to Early Repurchase Deduction. 

Sources of Funds for Repurchases 

The Company may fund repurchase requests from sources other than cash flow from operations, including, without limitation, the sale of assets, borrowings, return of capital or offering proceeds (including from sales of the Company’s common stock or Operating Partnership units to the Special Limited Partner, an affiliate of Blackstone), and the Company has no limits on the amounts it may pay from such sources. 

Repurchase Limitations 

The Company may repurchase fewer shares than have been requested in any particular month to be repurchased under this share repurchase plan, or none at all, in its discretion at any time. In addition, the total amount of aggregate repurchases of Class T, Class S, Class D and Class I shares will be limited to no more than 2% of the Company’s aggregate NAV per month and no more than 5% of the Company’s aggregate NAV per calendar quarter. 

 

In the event that the Company determines to repurchase some but not all of the shares submitted for repurchase during any month, shares submitted for repurchase during such month will be repurchased on a pro rata basis. All unsatisfied repurchase requests must be resubmitted after the start of the next month or quarter, or upon the recommencement of this share repurchase plan, as applicable. 

If the Transaction Price for the applicable month is not made available by the tenth business day prior to the last business day of the month (or is changed after such date), then no repurchase requests will be accepted for such month and stockholders who wish to have their shares repurchased the following month must resubmit their repurchase requests. 

Should repurchase requests, in the Company’s judgment, place an undue burden on the Company’s liquidity, adversely affect the Company’s operations or risk having an adverse impact on the Company as a whole, or should the Company otherwise determine that investing its liquid assets in real properties or other illiquid 

 

investments rather than repurchasing the Company’s shares is in the best interests of the Company as a whole, the Company may choose to repurchase fewer shares in any particular month than have been requested to be repurchased, or none at all. Further, the Company’s board of directors may modify, suspend or terminate this share repurchase plan if it deems such action to be in the best interest of the Company and its Stockholders. Material modifications, including any amendment to the 2% monthly or 5% quarterly limitations on repurchases, to and suspensions of the share repurchase plan will be promptly disclosed to stockholders in a prospectus supplement (or post-effective amendment if required by the Securities Act) or special or periodic report filed by us. Material modifications will also be disclosed on the Company’s website. In addition, the Company may determine to suspend this share repurchase plan due to regulatory changes, changes in law or if the Company becomes aware of undisclosed material information that it believes should be publicly disclosed before shares are repurchased. Once this share repurchase plan is suspended, the Company’s board of directors must affirmatively authorize the recommencement of this plan before Stockholder requests will be considered again. 

Early Repurchase Deduction 

There is no minimum holding period for shares of the Company’s common stock and Stockholders can request that the Company repurchase their shares at any time. However, subject to limited exceptions, shares that have not been outstanding for at least one year will be repurchased at 95% of the Transaction Price (an “Early Repurchase Deduction”) on the applicable Repurchase Date. The one-year holding period is measured as of the subscription closing date immediately following the prospective Repurchase Date. This Early Repurchase Deduction will also generally apply to minimum account repurchases. 

The Company may, from time to time, waive the Early Repurchase Deduction in the following circumstances: 

	
 
	
•
	
repurchases resulting from death or qualifying disability; or 

	
 
	
• 
	
in the event that a Stockholder’s shares are repurchased because such Stockholder has failed to maintain the $500 minimum account balance. 

 

As set forth above, the Company may waive the Early Repurchase Deduction in respect of repurchase of shares resulting from the death of a Stockholder who is a natural person, subject to the conditions and limitations described above, including shares held by such Stockholder through a revocable grantor trust or an IRA or other retirement or profit-sharing plan, after receiving written notice from the estate of the Stockholder, the recipient of the shares through bequest or inheritance, or, in the case of a revocable grantor trust, the trustee of such trust, who shall have the sole ability to request repurchase on behalf of the trust. The Company must receive the written repurchase request within 12 months after the death of the Stockholder in order for the requesting party to rely on any of the special treatment described above that may be afforded in the event of the death of a Stockholder. Such a written request must be accompanied by a certified copy of the official death certificate of the Stockholder. If spouses are joint registered holders of shares, the request to repurchase the shares may be made if either of the registered holders dies. If the Stockholder is not a natural person, such as certain trusts or a partnership, corporation or other similar entity, the right of repurchase upon death does not apply. 

Furthermore, as set forth above, the Company may waive the Early Repurchase Deduction in respect of repurchase of shares held by a Stockholder who is a natural person who is deemed to have a qualifying disability (as such term is defined in Section 72(m)(7) of the Code), subject to the conditions and limitations described above, including shares held by such Stockholder through a revocable grantor trust, or an IRA or other retirement or profit-sharing plan, after receiving written notice from such Stockholder, provided that the condition causing the qualifying disability was not pre-existing on the date that the Stockholder became a Stockholder. The Company must receive the written repurchase request within 12 months of the initial determination of the Stockholder’s disability in order for the Stockholder to rely on any of the waivers 

 

described above that may be granted in the event of the disability of a Stockholder. If spouses are joint registered holders of shares, the request to repurchase the shares may be made if either of the registered holders acquires a qualifying disability. If the Stockholder is not a natural person, such as certain trusts or a partnership, corporation or other similar entity, the right of repurchase upon disability does not apply. 

Items of Note 

	
 
	
• 
	
Stockholders will not receive interest on amounts represented by uncashed repurchase checks; 

	
 
	
• 
	
Under applicable anti-money laundering regulations and other federal regulations, repurchase requests may be suspended, restricted or canceled and the proceeds may be withheld; 

	
 
	
• 
	
IRS regulations require the Company to determine and disclose on Form 1099-B the adjusted cost basis for shares of the Company’s stock sold or repurchased. Although there are several available methods for determining the adjusted cost basis, unless a Stockholder elects otherwise, which such Stockholder may do by checking the appropriate box on the subscription agreement or calling the Company’s customer service number at 844-702-1299, the Company will utilize the first-in-first-out method; and 

	
 
	
•
	
All shares of the Company’s common stock requested to be repurchased must be beneficially owned by the Stockholder of record making the request or his or her estate, heir or beneficiary, or the party requesting the repurchase must be authorized to do so by the Stockholder of record of the shares or his or her estate, heir or beneficiary, and such shares of common stock must be fully transferable and not subject to any liens or encumbrances. In certain cases, the Company may ask the requesting party to provide evidence satisfactory to the Company that the shares requested for repurchase are not subject to any liens or encumbrances. If the Company determines that a lien exists against the shares, the Company will not be obligated to repurchase any shares subject to the lien. 

Mail and Telephone Instructions 

The Company and its transfer agent will not be responsible for the authenticity of mail or phone instructions or losses, if any, resulting from unauthorized Stockholder transactions if they reasonably believe that such instructions were genuine. The Company and the its transfer agent have established reasonable procedures to confirm that instructions are genuine including requiring the Stockholder to provide certain specific identifying information on file and sending written confirmation to Stockholders of record no later than five days following execution of the instruction. Failure by the Stockholder or its agent to notify the Company’s transfer agent in a timely manner, but in no event more than 60 days from receipt of such confirmation, that the instructions were not properly acted upon or any other discrepancy will relieve the Company, the Company’s transfer agent and the financial advisor of any liability with respect to the discrepancy. 

 

 

		
	
 
	
 

	

	
REPURCHASE AUTHORIZATION

    FOR Blackstone Real Estate Income Trust, Inc.

Use this form to request repurchase of your shares in Blackstone Real Estate Income Trust, Inc. Please complete all sections below. 

1 REPURCHASE FROM THE FOLLOWING ACCOUNT 

 

	
 
	
 

	
Name(s) on the Account

 

 

	
 
	
 

	
Account Number

 
	
Social Security Number/TIN

 

		
	
 
	
 

	
Financial Advisor Name

 
	
Financial Advisor Phone Number

 

	
 
	
 

	
2 REPURCHASE AMOUNT (Check one)
	
3 REPURCHASE TYPE (Check one)

	
 
	
 

	
☐ All Shares
	
☐ Normal

	
 
	
 

	
☐ Number of Shares                                      
	
☐ Death

	
 
	
 

	
☐ Dollar Amount $                                       
	
☐ Disability

Additional documentation is required if repurchasing due to Death or Disability. Contact Investor Relations for detailed instructions at 844-702-1299. 

4 PAYMENT INSTRUCTIONS (Select only one) 

Indicate how you wish to receive your repurchase payment below. If an option is not selected, a check will be sent to your address of record. Repurchase proceeds for qualified accounts, including IRAs and other Custodial accounts, and certain Broker-controlled accounts as required by your Broker/Dealer of record, will automatically be issued to the Custodian or Broker/Dealer of record, as applicable. All Custodial held and Broker-controlled accounts must include the Custodian and/or Broker/Dealer signature. 

 

	
 

	
☐ Cash/Check Mailed to Address of Record

	
 

	
☐ Cash/Check Mailed to Third Party/Custodian (Signature Guarantee required)

	
 

 

	
 
	
 
	
 
	
 

	
Name / Entity Name / Financial Institution

 
	
Mailing Address

 

 

	
 
	
 
	
 
	
 

	
City

 
	
State

 
	
Zip Code

 
	
Account Number

 

☐ Cash/Direct Deposit Attach a pre-printed voided check. (Non-Custodian Investors Only) 

I authorize Blackstone Real Estate Income Trust, Inc. or its agent to deposit my distribution into my checking or savings account. In the event that Blackstone Real Estate Income Trust, Inc. deposits funds erroneously into my account, they are authorized to debit my account for an amount not to exceed the amount of the erroneous deposit. 

 

	
 
	
 
	
 
	
 

	
Financial Institution Name

 
	
Mailing Address

 
	
City

 
	
State

 

 

	
 
	
 
	
 
	
 

	
Your Bank’s ABA Routing Number

 
	
Your Bank Account Number

 

PLEASE ATTACH A PRE-PRINTED VOIDED CHECK

1

 

5 SHARE REPURCHASE PLAN CONSIDERATIONS (Select only one) 

Our share repurchase plan contains limitations on the number of shares that can be repurchased under the plan during any month and quarter. In addition to these limitations, we cannot guarantee that we will have sufficient funds to accommodate all repurchase requests made in any applicable repurchase period and we may elect to repurchase fewer shares than have been requested in any particular month, or none at all. If the number of shares subject to repurchase requests exceeds the then applicable limitations, or if we otherwise do not make all requested repurchases, each shareholder’s request will be reduced on a pro rata basis after we have repurchased all shares for which repurchase has been requested due to death or disability. If repurchase requests are reduced on a pro rata basis, you may elect (at the time of your repurchase request) to either withdraw your entire request for repurchase or have your request honored on a pro-rata basis. If you wish to have the remainder of your initial request repurchased, you must resubmit a new repurchase request for the remaining amount.  Please select one of the following options below. If an option is not selected, your repurchase request will be processed on a pro-rata basis, if needed. 

	
☐
	
Process my repurchase request on a pro-rata basis. 

	
☐
	
Withdraw (do not process) my entire repurchase request if amount will be reduced on a pro-rata basis. 

 

6 COST BASIS SELECTION (Select only one) 

U.S. federal income tax information reporting rules generally apply to certain transactions in our shares. Where they apply, the “cost basis” calculated for the shares involved will be reported to the Internal Revenue Service (“IRS”) and to you. Generally these rules apply to our shares, including those purchased through our distribution reinvestment plan. You should consult your own tax advisor regarding the consequences of these new rules and your cost basis reporting options. 

Indicate below the cost basis method you would like us to apply. 

IMPORTANT: If an option is not selected, your cost basis will be calculated using the FIFO method. 

	
☐
	
FIFO (First – In / First Out) 

	
☐
	
LIFO (Last – In / First Out) Consult your tax advisor to determine whether this method is available to you. 

	
☐
	
Specific Lots 

If you have selected “Specific Lots,” please identify the lots below: 

 

	
 
	
 

	
Date of Purchase:

 
	
Amount of Purchase:

 

	
 
	
 

	
Date of Purchase:

 
	
Amount of Purchase:

 

	
 
	
 

	
Date of Purchase:

 
	
Amount of Purchase:

7 AUTHORIZATION AND SIGNATURE 

IMPORTANT: Signature Guarantee may be required if any of the following applies: 

	
•
	
Amount to be repurchased is $500,000 or more. 

	
• 
	
The repurchase is to be sent to an address other than the address we have had on record for the past 30 days. 

	
• 
	
The repurchase is to be sent to an address other than the address on record. 

	
• 
	
If name has changed from the name in the account registration, we must have a one-and-the-same name signature guarantee. A one-and-the-same signature guarantee must state “<Previous Name> is one-and-the-same as <New Name>” and you must sign your old and new name. 

	
•
	
The repurchase proceeds are deposited directly according to banking instructions provided on this form. (Non-Custodial Investors Only) 

 

 

			
	
 
	
 
	
 

	
Investor Name (Please Print)

 
	
Signature

 
	
Date

 

 

			
	
 
	
 
	
 

	
Co-Investor Name (Please Print)

 
	
Signature

 
	
Date

 

 

			
	
 
	
 
	
 

	
Signature Guarantee

(Affix Medallion or Signature Guarantee Stamp Below)
	
 
	
Custodian and/or Broker/Dealer Authorization

(if applicable)

 

                                                                                               

Signature of Authorized Person

	
*
	
Please refer to the prospectus you received in connection with your initial investment in Blackstone Real Estate Income Trust, Inc., as amended by any amendments or supplements to that prospectus, for a description of the current terms of our share repurchase plan. A copy of the prospectus, as amended and supplemented to date, is located at www.bxreit.com and at www.sec.gov. The repurchase price will be available in our prospectus supplements and at www.bxreit.com and www.sec.gov. There are various limitations on your ability to request that we repurchase your shares, including, subject to certain exceptions, an early repurchase deduction if your shares have been outstanding for less than one year. Please see a copy of the applicable prospectus, as amended and supplemented to date, for the current repurchase price. Our board of directors may determine to amend, suspend or terminate our share repurchase plan without stockholder approval. We will provide written notice of any amendment, suspension or termination of the plan in a filing with the SEC at www.sec.gov, which will also be made available at www.bxreit.com. Repurchase of shares, when requested, will generally be made monthly; provided however, that the board of directors may determine from time to time to adjust the timing of repurchases. All requests for repurchases must be received in good order by 4:00 p.m. (Eastern time) on the second to last business day of the applicable month. A Stockholder may withdraw his or her repurchase request by notifying the transfer agent, directly or through the Stockholder’s financial intermediary, on our toll-free, automated telephone line, 844-702-1299. Repurchase requests must be cancelled before 4:00 p.m. (Eastern time) on the applicable Repurchase Date (or if such Repurchase Date is not a business day, the prior business day). We cannot guarantee that we will have sufficient available funds or that we will otherwise be able to accommodate any or all requests made in any applicable repurchase period. 

 

 

Mail to: Blackstone Real Estate Income Trust ¢ DST Systems, Inc. ¢ PO Box 219349 ¢ Kansas City, MO 64121-9349 

Overnight Delivery: Blackstone Real Estate Income Trust ¢ DST Systems, Inc. ¢ 430 W. 7th St. ¢ Kansas City, MO 64105 

Investor Relations: 844-702-1299

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