Table of Contents

December 31, 2025

To Our Shareholders:

A solid December capped another strong performance year for U.S. credit markets in 2025, underpinned by ongoing technical strength, a resilient economic backdrop and supportive fundamentals. U.S. high yield outperformed loans to gain 8.62%, supported by the decline in rates through the year. Interest income contributed to the above average 5.9% annual return for U.S. loans, even as declining base rates and tighter spreads eroded the asset class’s floating-rate advantage.¹ U.S. CLO BBs returned over 8%, outperforming both loans and high yield,² compared to a 5.86% return through the stack for the U.S. CLO index.³ High yield also outperformed the U.S. 10-Year Treasury Index, which returned 8.02%, while equities were the clear winner of the year, fueled by the AI super cycle.⁴

This marked the third consecutive year of gains for liquid loans and high yield, against a dynamic backdrop punctuated by ongoing volatility due to macroeconomic and geopolitical developments, uncertainty over global trade tariffs and U.S. policy, AI bubble concerns, and idiosyncratic credit events. Economic resilience and fundamental health buffered against the uncertain backdrop. The economic resilience showed up in strong corporate earnings, accelerating U.S. GDP growth of 4.3% in Q3’25, and U.S. inflation that trended lower. We remained mindful of indications of a K-shaped economy, while a cooling labor market and emerging signs of weakness in the consumer U.S. residential housing market contributed to 75bps worth of rate cuts over the second half of the year.⁵

Fundamental credit strength also underpinned performance, as falling base rates bolstered interest coverage ratios for loans and bonds.⁶ Liability management exercise (LME) activity and U.S. loan defaults moderated over the year to leave the par-weighted U.S. liquid loan default rate 165bps below January 2025’s 4.5 year high at 2.87%. The U.S. high yield par-weighted default rates rose 41bps to 1.88% by the end of the year.⁷

Sustained Technical Strength

The seemingly unwavering demand for loan and high yield assets, kept the technical supply/demand dynamic off kilter all year. This technical strength underpinned credit markets’ rebound from the sharp April 2 Liberation Day selloff and ensuing tariff uncertainty. From their 50th and 60th percentiles since the Global Financial Crisis (“GFC”), high yield and leveraged loan spreads retraced to below the 5th percentiles by year-end, as the wider levels presented multiple entry points for investors nimble enough to take advantage of the opportunities created by the volatility.⁸

In high yield, index spreads ended the year close to annual and historic tights at 268bps, nearly 200bps inside April 2 Liberation Day wides.⁹ Index yields at 6.5% closed the year at their tightest levels since April 2022,¹⁰ supported by $18.2 billion of ETF-driven retail inflows through the year.¹¹ Loan demand was bolstered by record CLO issuances,¹² which helped offset outflows from loan retail funds. Robust demand for CLO AAAs allowed CLO issuers to deliver a second consecutive annual new supply record of $208 billion, as well as a new annual high for resets/refinancings.¹³

Robust primary loan and high yield issuance did nothing to alleviate this imbalance, given the limited new money available. As Liberation Day dampened prospects for the anticipated M&A revival, leveraged finance borrowers took advantage of favorable conditions to refinance, reprice and extract dividends. High yield’s refinance-dominated annual volume touched $332 billion, a four-year high.¹⁴

Loan issuers recorded the second largest gross annual total on record at $1 trillion,¹⁵ helping grow the market by 9.2% to a record $1.55 trillion of total par outstanding.¹⁶ New issue loan volume was just $247 billion, and as demand pushed up the par+ cohort — to 58% by year-end¹⁷ — loan repricings proliferated, accounting for half of the year’s total. The now two-year repricing wave reduced the weighted average nominal spread on all outstanding LLI loans by 49bps to S+320, the lowest level since the GFC.¹⁸

Rising Dispersion

Credit dispersion also increased over the year as concern over tail risk—exacerbated by CLO reset cleanups—and as investors moved up in quality. Just as the par+ loan cohort increased over the second half, loans priced below $80 edged up to 4.5% from 3% at the start of the year.¹⁹ Loan downgrades outpaced upgrades, keeping the focus on the CCC-rated cohort,²⁰ while the unpredictable outcomes of LMEs and their impact on recoveries also weighed on risk appetite.²¹ Several high-profile idiosyncratic situations contributed to the risk aversion over the second half, with dispersion evident by sector and quality, as cyclical industries and CCC-rated credits underperformed.²²

December 31, 2025

Looking Forward

Credit markets entered 2026 supported by a still healthy economic backdrop despite last year’s rising uncertainty around the sustainability of the cycle. Growth is expected to be robust through the first half of 2026, supported by favorable fiscal policy and monetary easing in late 2025, continuing AI capital spending, loose financial conditions, expected deregulation benefits, and rebounding M&A markets. Alongside this durability are known and unknown market disruptors, including Fed leadership changes, ongoing tariff uncertainty, and the U.S. midterm elections, which will likely ensure that volatility remains a key part of the investing backdrop.²³ Other reasons for caution include further softening in the labor market, slowdown in consumer spending, or a slowdown in earnings growth which would challenge elevated valuations.

Any increased new money supply off the back of recovering M&A activity may help alleviate the technical imbalance. However, this will take time to materialize, and in the meantime tight valuations and heightened credit dispersion are expected to persist, making credit selection and dynamic asset allocation even more important. We continue to focus on areas with compelling relative value, and target bigger companies, larger tranches and higher quality businesses in our thematic neighborhoods with the strongest near-term tailwinds - energy and power, digital/infrastructure services, and life sciences. We will also continue to leverage our proprietary insights and operating resources in an effort to drive better credit selection and improved outcomes.

At Blackstone Credit & Insurance, we value your continued investment and confidence in us and in our family of funds. Additional information about our funds is available on our website at www.blackstone.com/bxci-closed-end-funds.

Sincerely,

Blackstone Liquid Credit Strategies LLC

will happen. There is no guarantee that the trends depicted herein will continue or will not reverse.

December 31, 2025 (Unaudited)

Blackstone Senior Floating Rate 2027 Term Fund

Fund Overview

Blackstone Senior Floating Rate 2027 Term Fund (“BSL” or herein, the “Fund”) is a closed-end term fund that trades on the New York Stock Exchange under the symbol “BSL”. BSL’s primary investment objective is to seek high current income, with a secondary objective to seek preservation of capital, consistent with its primary goal of high current income. Under normal market conditions, the Fund invests at least 80% of its Managed Assets in senior, secured floating rate loans (“Senior Loans”). BSL may also invest in second-lien loans and high yield bonds and employs financial leverage, which may increase risk to the Fund. The Fund has a limited term, and absent shareholder approval to extend the life of the Fund, the Fund will dissolve on or about May 31, 2027.

Portfolio Management Commentary (BSL)

Fund Performance

As of December 31, 2025, BSL outperformed its benchmark, the Morningstar LSTA US Leveraged Loan Index (“Morningstar LLI”), on a Net Asset Value (“NAV”) per share basis for the three-year, ten-year, and since inception periods and underperformed its benchmark for the one-year and five-year periods. On a share price basis, the Fund outperformed its benchmark for the three-year, five-year, and ten-year periods, and underperformed its benchmark for the one-year period and since inception periods. The shares of the Fund traded at an average discount to NAV of 2.4% for the twelve months ended December 31, 2025, compared to its peer group average discount of 3.0% over the same period.

NAV Performance Factors

The Fund’s underperformance relative to the benchmark for the twelve months ended December 31, 2025 was primarily attributable to credit selection within the Fund’s loan allocation. The Fund’s allocation to CLO securities contributed positively to the Fund’s performance for the period. By issuer, the largest positive contributors to performance were Dcert Buyer Inc, Global Medical Response Inc, and Box Parent Co Inc. The most significant detractors were First Brands Group, Cast & Crew LLC, and Vibrantz Technologies Inc.

Portfolio Activity and Positioning

During the period, we continued to dynamically manage the Fund. The Fund’s largest sector overweights were commercial & professional services, software & services, and financial services; the largest sector underweights included media & entertainment, consumer services, and materials. The Fund’s asset allocation remained stable during the period.

December 31, 2025 (Unaudited)

Performance Summary

Performance quoted represents past performance, which may be higher or lower than current performance. Past performance is not indicative of future results. The returns shown do not reflect taxes that an investor would pay on Fund distributions or on the sale of Fund shares. To obtain the most recent month-end performance, visit www.blackstone.com/bxci-closed-end-funds.

Value of a $10,000 Investment

BSL Total Return (as of December 31, 2025)

December 31, 2025 (Unaudited)

December 31, 2025 (Unaudited)

Blackstone Long-Short Credit Income Fund

Fund Overview

Blackstone Long Short Credit Income Fund (“BGX” or herein, the “Fund”) is a closed-end fund that trades on the New York Stock Exchange under the symbol “BGX”. BGX’s primary investment objective is to provide current income, with a secondary objective of capital appreciation. BGX will take long positions in investments which we believe offer the potential for attractive returns under various economic and interest rate environments. BGX may also take short positions in investments which we believe will under-perform due to a greater sensitivity to earnings growth of the issuer, default risk or the general level and direction of interest rates. BGX must hold no less than 70% of its Managed Assets in first- and second-lien secured loans (“Secured Loans”), but may also invest in unsecured loans and high yield bonds.

Portfolio Management Commentary (BGX)

Fund Performance

As of December 31, 2025, BGX outperformed a composite weighting of the Morningstar LLI and the Bloomberg U.S. High Yield Index (“Bloomberg HYI”) (85% loans, 15% high yield bonds) on a NAV per share basis for the three-year, ten-year, and since inception periods and underperformed its benchmark for the one-year and five-year periods. On a share price basis, the Fund outperformed its benchmark for the three-year, five-year, and ten-year periods, and underperformed its benchmark for the one-year and since inception periods. The shares of the Fund traded at an average discount to NAV of 6.1% for the twelve months ended December 31, 2025, compared to its peer group average discount of 3.8% over the same period.

NAV Performance Factors

The Fund’s underperformance relative to the benchmark for the twelve months ended December 31, 2025 was primarily attributable to the Fund’s underweight allocation to high yield bonds. The Fund’s allocation to CLO securities contributed positively to the Fund’s performance for the period. By issuer, the largest positive contributors to performance were Dcert Buyer Inc, Cornerstone OnDemand Inc, and Global Medical Response Inc. The most significant detractors were First Brands Group, Cast & Crew LLC, and Atlas CC Acquisition Corp.

Portfolio Activity and Positioning

During the period, we continued to dynamically manage the Fund. The Fund’s largest sector overweights were commercial & professional services, financial services, and software & services; the largest sector underweights included media & entertainment, consumer services, and materials. The Fund increased its allocation to high yield bonds during the period.

December 31, 2025 (Unaudited)

Performance Summary

Performance quoted represents past performance, which may be higher or lower than current performance. Past performance is not indicative of future results. The returns shown do not reflect taxes that an investor would pay on Fund distributions or on the sale of Fund shares. To obtain the most recent month-end performance, visit www.blackstone.com/bxci-closed-end-funds.

Value of a $10,000 Investment

BGX Total Return (as of December 31, 2025)

December 31, 2025 (Unaudited)

December 31, 2025 (Unaudited)

Blackstone Strategic Credit 2027 Term Fund

Fund Overview

Blackstone Strategic Credit 2027 Term Fund (“BGB” or herein, the “Fund”) is a closed-end term fund that trades on the New York Stock Exchange under the symbol “BGB”. BGB’s primary investment objective is to seek high current income, with a secondary objective to seek preservation of capital, consistent with its primary goal of high current income. BGB invests primarily in a diversified portfolio of loans and other fixed income instruments of predominantly U.S. corporate issuers, including first- and second-lien loans (“Senior Secured Loans”) and high yield corporate bonds of varying maturities. BGB must hold no less than 80% of its Managed Assets in credit investments comprised of corporate fixed income instruments and other investments (including derivatives) with similar economic characteristics. The Fund has a limited term and will dissolve on or about September 15, 2027, absent shareholder approval to extend such term.

Portfolio Management Commentary (BGB)

Fund Performance

As of December 31, 2025, BGB outperformed a composite weighting of the Morningstar LLI and the Bloomberg HYI (75% loans, 25% high yield bonds) on a NAV per share basis for the three-year, ten-year, and since inception periods and underperformed its benchmark for the one-year and five-year periods. On a share price basis, the Fund outperformed its benchmark for the three-year, five-year, and ten-year periods, and underperformed for the one-year and since inception periods. The shares of the Fund traded at an average discount to NAV of 3.9% for the twelve months ended December 31, 2025, compared to its peer group average discount of 3.8% over the same period.

NAV Performance Factors

The Fund’s underperformance relative to the benchmark for the twelve months ended December 31, 2025 was primarily attributable to the Fund’s credit selection within the Fund’s loan allocation. The Fund’s credit selection within its high yield bond allocation contributed positively to the Fund’s performance for the period. By issuer, the largest positive contributors to performance were Dcert Buyer Inc, Boxer Parent Co Inc, and MPT Operating Partnership LP. The most significant detractors were First Brands Group, Cast & Crew, and Mitnick Corporate Purchaser Inc.

Portfolio Activity and Positioning

During the period, we continued to dynamically manage the Fund. The Fund’s largest sector overweights were commercial & professional services, financial services, and energy; the largest sector underweights included telecommunication services, media & entertainment, and materials. The Fund increased its allocation to high yield bonds during the period.

December 31, 2025 (Unaudited)

Performance Summary

Performance quoted represents past performance, which may be higher or lower than current performance. Past performance is not indicative of future results. The returns shown do not reflect taxes that an investor would pay on Fund distributions or on the sale of Fund shares. To obtain the most recent month-end performance, visit www.blackstone.com/bxci-closed-end-funds.

Value of a $10,000 Investment

BGB Total Return (as of December 31, 2025)

December 31, 2025 (Unaudited)

December 31, 2025

See Notes to Financial Statements.

December 31, 2025

See Notes to Financial Statements.

December 31, 2025

See Notes to Financial Statements.

December 31, 2025

See Notes to Financial Statements.

December 31, 2025

See Notes to Financial Statements.

See Notes to Financial Statements.

See Notes to Financial Statements.

See Notes to Financial Statements.

See Notes to Financial Statements.

See Notes to Financial Statements.

See Notes to Financial Statements.

Amounts above are shown as a percentage of net assets as of December 31, 2025.

Investment Abbreviations:

SOFR - Secured Overnight Financing Rate

Reference Rates:

1M US SOFR - 1 Month US SOFR as of December 31, 2025 was 3.79%

3M US SOFR - 3 Month US SOFR as of December 31, 2025 was 4.01%

3M CME TERM SOFR - 3 Month CME TERM SOFR as of December 31, 2025 was 3.65%

6M US SOFR - 6 Month US SOFR as of December 31, 2025 was 4.20%

12M CME TERM SOFR - 12 Month CME TERM SOFR as of December 31, 2025 was 3.42%

See Notes to Financial Statements.