H.I.G. Capital readies $412 million WhiteHorse VII CLO offering

By Cristal Cody

Tupelo, Miss., Sept. 9 - Additional details for H.I.G. Capital, LLC's $411.9 million WhiteHorse VII Ltd./WhiteHorse VII LLC collateralized loan obligation offering emerged on Monday, according to market sources.

WhiteHorse VII will sell seven tranches of notes due Sept. 15, 2025, including $238.8 million of class A-1L floating-rate notes (/AAA/AAA) expected to price at Libor plus 140 basis points.

The capital structure also includes $52.4 million of class A-2L floating-rate notes (/AA/); $31.2 million of class A-3L deferrable floating-rate notes (/A/); $20 million of class B-1L deferrable floating-rate notes (/BBB/); $20.8 million of class B-2L deferrable floating-rate notes; $8.8 million of class B-3L deferrable floating-rate notes (/B/) and $39.9 million of subordinated notes.

The equity tranche in the transaction was upsized from initial estimates of $38.82 million.

RBS Securities Inc. is the placement agent.

H.I.G. WhiteHorse Capital, the credit affiliate of equity firm H.I.G. Capital, will manage the CLO, which is backed by broadly syndicated senior secured corporate loans.

The vehicle has a non-callable period that ends in September 2015 and a reinvestment period that ends in September 2017.

Proceeds will be used to purchase a portfolio of about $400 million of primarily leveraged loans.

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