By Cristal Cody
Tupelo, Miss., July 24 – HPS Investment Partners, LLC priced $505,975,000 of notes in a refinancing of a vintage collateralized loan obligation offering, according to a market source and a notice of executed first supplemental indenture on Monday.
HPS Loan Management 8-2016 Ltd./HPS Loan Management 8-2016 LLC sold $292.5 million of class A1-R senior secured floating-rate notes at Libor plus 102 basis points; $32.5 million of class A2-R senior secured floating-rate notes at Libor plus 140 bps; $55 million of class B-R senior secured floating-rate notes at Libor plus 160 bps; $30 million of class C-R mezzanine secured deferrable floating-rate notes at Libor plus 195 bps; $30 million of class D-R mezzanine secured deferrable floating-rate notes at Libor plus 290 bps; $18.75 million of class E-R junior secured deferrable floating-rate notes at Libor plus 550 bps and $47,255,000 of subordinated notes.
Goldman Sachs & Co. LLC was the refinancing placement agent.
HPS Investment Partners will manage the CLO.
The maturity on the notes was extended to July 20, 2030 from the original April 20, 2027 maturity. The reset CLO has a two-year non-call period and a five-year reinvestment period.
The $406.75 million original CLO was issued April 7, 2016. In that offering, the CLO priced $3 million of class X senior secured floating-rate notes at Libor plus 100 bps; $248 million of 1.55% class A senior secured fixed-rate notes; $56 million of class B senior secured floating-rate notes at Libor plus 240 bps; $18 million of class C-1 mezzanine secured deferrable floating-rate notes at Libor plus 375 bps; $6 million of 5.28% class C-2 mezzanine secured deferrable fixed-rate notes; $20 million of class D mezzanine secured deferrable floating-rate notes at Libor plus 485 bps; $18 million of class E junior secured deferrable floating-rate notes at Libor plus 790 bps and $37.75 million of subordinated notes.
Proceeds were used to redeem the original notes.
The deal is backed primarily by broadly syndicated first-lien senior secured loans.
The subsidiary of Highbridge Capital Management, LLC is based in New York City.
| Issuer: | HPS Loan Management 8-2016 Ltd./HPS Loan Management 8-2016 LLC
|
| Amount: | $505,975,000 refinancing
|
| Maturity: | July 20, 2030
|
| Securities: | Floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Refinancing agent: | Goldman Sachs & Co. LLC
|
| Manager: | HPS Investment Partners, LLC
|
| Call feature: | July 20, 2020
|
| Notice date: | July 23
|
| Settlement date: | July 20
|
| Distribution: | Rule 144A, Regulation S
|
|
|
| Class A1-R notes
|
| Amount: | $292.5 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 102 bps
|
| Ratings: | S&P: AAA
|
| Fitch: AAA
|
|
|
| Class A2-R notes
|
| Amount: | $32.5 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 140 bps
|
| Ratings: | S&P: Non-rated
|
| Fitch: AAA
|
|
|
| Class B-R notes
|
| Amount: | $55 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 160 bps
|
| Rating: | S&P: AA
|
|
|
| Class C-R notes
|
| Amount: | $30 million
|
| Securities: | Mezzanine secured deferrable floating-rate notes
|
| Coupon: | Libor plus 195 bps
|
| Rating: | S&P: A
|
|
|
| Class D-R notes
|
| Amount: | $30 million
|
| Securities: | Mezzanine secured deferrable floating-rate notes
|
| Coupon: | Libor plus 290 bps
|
| Rating: | S&P: BBB-
|
|
|
| Class E-R notes
|
| Amount: | $18.75 million
|
| Securities: | Junior secured deferrable floating-rate notes
|
| Coupon: | Libor plus 550 bps
|
| Rating: | S&P: BB-
|
|
|
| Equity
|
| Amount: | $57.3 million
|
| Securities: | Subordinated notes
|
| Ratings: | Non-rated
|
© 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.
