By Cristal Cody
Eureka Springs, Ark., Dec. 6 – HPS Investment Partners, LLC priced $410.15 million of notes due Jan. 20, 2028 in the firm’s second new collateralized loan obligation offering of the year, according to a market source.
HPS Loan Management 10-2016 Ltd./HPS Loan Management 10-2016 LLC sold $248 million of class A-1 senior secured floating-rate notes at Libor plus 141 basis points; $50.5 million of class A-2 senior secured floating-rate notes at Libor plus 180 bps; $13.5 million of class B-1 mezzanine secured floating-rate notes at Libor plus 260 bps; $12 million of 4.69% class B-2 mezzanine secured fixed-rate notes; $28 million of class C mezzanine secured deferrable floating-rate notes at Libor plus 365 bps; $16 million of class D junior secured deferrable floating-rate notes at Libor plus 650 bps and $42.15 million of subordinated notes.
Citigroup Global Markets Inc. was the placement agent.
HPS Investment Partners, formerly known as Highbridge Principal Strategies, LLC, will manage the CLO, which has a three-year non-call period and a five-year reinvestment period.
The deal is backed primarily by broadly syndicated first-lien senior secured loans and eligible investments.
Highbridge has priced two U.S. CLO transactions year to date and closed on three CLO deals in 2015.
The subsidiary of Highbridge Capital Management, LLC is based in New York City.
| Issuer: | HPS Loan Management 10-2016 Ltd./HPS Loan Management 10-2016 LLC
|
| Amount: | $410.15 million
|
| Maturity: | Jan. 20, 2028
|
| Securities: | Fixed-rate, floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Placement agent: | Citigroup Global Markets Inc.
|
| Manager: | HPS Investment Partners, LLC
|
| Call feature: | Oct. 20, 2019
|
| Pricing date: | Dec. 1
|
| Settlement date: | Dec. 15
|
|
|
| Class A-1 notes
|
| Amount: | $248 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 141 bps
|
| Ratings: | Moody’s: Aaa
|
| S&P: AAA
|
|
|
| Class A-2 notes
|
| Amount: | $50.5 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 180 bps
|
| Rating: | Moody’s: Aa2
|
|
|
| Class B-1 notes
|
| Amount: | $13.5 million
|
| Securities: | Mezzanine secured floating-rate notes
|
| Coupon: | Libor plus 260 bps
|
| Rating: | Moody’s: A2
|
|
|
| Class B-2 notes
|
| Amount: | $12 million
|
| Securities: | Mezzanine secured fixed-rate notes
|
| Coupon: | 4.69%
|
| Rating: | Moody’s: A2
|
|
|
| Class C notes
|
| Amount: | $28 million
|
| Securities: | Mezzanine secured deferrable floating-rate notes
|
| Coupon: | Libor plus 365 bps
|
| Rating: | Moody’s: Baa3
|
|
|
| Class D notes
|
| Amount: | $16 million
|
| Securities: | Junior secured deferrable floating-rate notes
|
| Coupon: | Libor plus 650 bps
|
| Rating: | Moody’s: Ba3
|
|
|
| Equity
|
| Amount: | $42.15 million
|
| Securities: | Subordinated notes
|
| Ratings: | Non-rated
|
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