By Cristal Cody
Tupelo, Miss., April 28 – HPS Investment Partners, LLC priced $512.07 million of notes due May 6, 2030 in a new collateralized loan obligation offering, according to a market source.
HPS Loan Management 11-2017 Ltd./HPS Loan Management 11-2017 LLC sold $320 million of class A floating-rate notes at Libor plus 126 basis points; $5.5 million of class B floating-rate notes at Libor plus 165 bps; $28.5 million of class C floating-rate notes at Libor plus 235 bps; $32.5 million of class D floating-rate notes at Libor plus 360 bps; $21.5 million of class E floating-rate notes at Libor plus 610 bps; $5.27 million of class F floating-rate notes at Libor plus 785 bps and $46.8 million of subordinated notes.
RBC Capital Markets, LLC was the placement agent.
HPS Investment Partners CLO (US), LLC will manage the CLO.
The CLO has a two-year non-call period and a five-year reinvestment period.
The deal is backed primarily by broadly syndicated first-lien senior secured loans.
Proceeds will be used to purchase a portfolio of about $500 million of mostly first-lien senior secured leveraged loans.
Highbridge priced two U.S. CLO transactions in 2016.
The subsidiary of Highbridge Capital Management, LLC is based in New York City.
Issuer: | HPS Loan Management 11-2017 Ltd./HPS Loan Management 11-2017 LLC
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Amount: | $512.07 million
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Maturity: | May 6, 2030
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Securities: | Floating-rate and subordinated notes
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Structure: | Cash flow CLO
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Placement agent: | RBC Capital Markets, LLC
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Manager: | HPS Investment Partners CLO (US), LLC
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Call feature: | Two years
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Settlement date: | May 25
|
Distribution: | Rule 144A
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|
Class A notes
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Amount: | $320 million
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Securities: | Floating-rate notes
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Coupon: | Libor plus 126 bps
|
Rating: | Fitch: AAA
|
|
Class B notes
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Amount: | $57.5 million
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Securities: | Floating-rate notes
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Coupon: | Libor plus 165 bps
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Rating: | Non-rated
|
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Class C notes
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Amount: | $28.5 million
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Securities: | Floating-rate notes
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Coupon: | Libor plus 235 bps
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Ratings: | Non-rated
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Class D notes
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Amount: | $32.5 million
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Securities: | Floating-rate notes
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Coupon: | Libor plus 360 bps
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Ratings: | Non-rated
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Class E notes
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Amount: | $21.5 million
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Securities: | Floating-rate notes
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Coupon: | Libor plus 610 bps
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Ratings: | Non-rated
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Class F notes
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Amount: | $5.27 million
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Securities: | Floating-rate notes
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Coupon: | Libor plus 785 bps
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Ratings: | Non-rated
|
|
Equity
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Amount: | $46.8 million
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Securities: | Subordinated notes
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Ratings: | Non-rated
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