Sound Point prices $515.6 million in CLO XXIV; HPS refinances CLO, ready for post-Libor

Chicago, Aug. 27 – Sound Point Capital Management LP brought a new $505.6 million five-class issue into the collateralized loan obligation market on Tuesday.

And, HPS Investment Partners, LLC refinanced a 2016 CLO, with indenture language ready for a post-Libor era.

The secondary market was slower on Tuesday, compared with Monday, especially in the non-investment-grade sector.

Investment-grade trading amounted to $149.81 million, while volume for non-investment-grade trading ran to $11.37 million.

The average price for investment-grade trades was 98.6, based on 56 trades.

The average price for non-investment-grade trades was 95.4, and that number was based on six trades.

Recently, on Aug. 6, HPS Investment Partners priced $507.35 million of new notes.

In that CLO offering, the issuer was among the first of CLO managers to adopt new Libor fallback language in its covenants.

Similarly, in HPS’ refinancing of its 2016 CLO, a substantial portion of the changes to the indenture involved the inclusion of Libor fallback language.

An additional change was that the B-1 notes and the B-2 notes from the additional issue were combined into one class, a new B-R class.

The original B-1 class had a floating rate of Libor plus 260 basis points and the initial B-2 class had a fixed rate of 4.68%. Folded together, they were refinanced at Libor plus 240 bps.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.