Transactions With Related Parties

3 Months Ended

Mar. 31, 2022

Related Party Transactions [Abstract]

Transactions With Related Parties

TRANSACTIONS WITH RELATED PARTIES

We are managed by our Manager pursuant to the Management Agreement, the current term of which expires on December 19, 2022, and will be automatically renewed for a one-year term upon such date and each anniversary thereafter unless earlier terminated.

As of March 31, 2022 and December 31, 2021, our consolidated balance sheets included $23.5 million and $28.4 million of accrued management and incentive fees payable to our Manager, respectively. During the three months ended March 31, 2022, we paid aggregate management and incentive fees of $28.4 million, to our Manager, compared to $19.2 million during the same period of 2021. In addition, during the three months ended March 31, 2022, we incurred expenses of $193,000 that were paid by our Manager and will be reimbursed by us, compared to $40,000 of such expenses during the same period of 2021.

As of March 31, 2022, our Manager held 988,508 shares of unvested restricted class A common stock, which had an aggregate grant date fair value of $30.8 million, and vest in installments over three years from the date of issuance. During

the three months ended March 31, 2022 and 2021, we recorded non-cash expenses related to shares held by our Manager of $4.2 million and $4.0 million, respectively. Refer to Note 16 for further details on our restricted class A common stock.

An affiliate of our Manager is the special servicer of the CLOs. This affiliate did not earn any special servicing fees related to the CLOs during the three months ended March 31, 2022 or 2021.

During the three months ended March 31, 2022 and 2021, we incurred $97,000 and $100,000, respectively, of expenses for various administrative and operations services to third-party service providers that are affiliates of our Manager.

In the first quarter of 2021, we acquired an SEK 5.0 billion interest in a total SEK 10.2 billion senior loan to a borrower that is wholly owned by a Blackstone-advised investment vehicle. We will forgo all non-economic rights under the loan, including voting rights, so long as we are an affiliate of the borrower. The senior loan terms were negotiated by a third party without our involvement and our 49% interest in the senior loan was made on such market terms.

In the first quarter of 2021, a Blackstone-advised investment vehicle acquired an aggregate $5.5 million participation, or 3%, of the $200 million increase to our 2019 Term Loan as a part of a broad syndication lead-arranged by JP Morgan. Blackstone Securities Partners L.P., an affiliate of our Manager, was engaged as a book-runner for the transaction and received aggregate fees of $200,000 in such capacity. Both of these transactions were on terms equivalent to those of unaffiliated parties.