By Cristal Cody
Tupelo, Miss., April 29 - H.I.G. Capital, LLC sold $574.75 million of notes due April 1, 2026 in the WhiteHorse VIII Ltd./WhiteHorse VIII LLC collateralized loan obligation transaction, according to a market source.
The CLO priced $4 million of class X senior secured floating-rate notes at Libor plus 100 basis points and $341 million of class A senior secured floating-rate notes at Libor plus 150 bps at the top of the structure.
The CLO also sold $74.25 million of class B floating-rate notes at Libor plus 205 bps; $33 million of class C floating-rate notes at Libor plus 275 bps; $31.5 million of class D floating-rate notes at Libor plus 365 bps; $26.25 million of class E floating-rate notes at Libor plus 455 bps; $12.25 million of class F floating-rate notes at Libor plus 550 bps and $52.5 million of subordinated notes.
Morgan Stanley & Co. LLC was 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 primarily by broadly syndicated first-lien senior secured corporate loans.
Proceeds from the offering will be used to purchase a $550 million portfolio of primarily leveraged loans.
The Miami-based private equity investment firm priced the $408.9 million WhiteHorse VII Ltd./WhiteHorse VII LLC deal in 2013.
| Issuer: | WhiteHorse VIII Ltd./WhiteHorse VIII LLC
|
| Amount: | $574.75 million
|
| Maturity: | April 1, 2026
|
| Securities: | Floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Placement agent: | Morgan Stanley & Co. LLC
|
| Manager: | H.I.G. Capital, LLC
|
| Pricing date: | April 16
|
| Distribution: | Rule 144A
|
|
|
| Class X notes
|
| Amount: | $4 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 100 bps
|
| Ratings: | Moody's: Expected Aaa
|
| Fitch: AAA
|
|
|
| Class A notes
|
| Amount: | $341 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 150 bps
|
| Ratings: | Moody's: Expected Aaa
|
| Fitch: AAA
|
|
|
| Class B notes
|
| Amount: | $74.25 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 205 bps
|
| Rating: | Moody's: Expected Aa2
|
|
|
| Class C notes
|
| Amount: | $33 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 275 bps
|
| Rating: | Moody's: Expected A2
|
|
|
| Class D notes
|
| Amount: | $31.5 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 365 bps
|
| Rating: | Moody's: Expected Baa3
|
|
|
| Class E notes
|
| Amount: | $26.25 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 455 bps
|
| Rating: | Moody's: Ba3
|
|
|
| Class F notes
|
| Amount: | $12.25 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 550 bps
|
| Rating: | Moody's: Expected B2
|
|
|
| Equity tranche
|
| Amount: | $52.5 million
|
| Securities: | Subordinated notes
|
| Ratings: | Non-rated
|
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