By Cristal Cody
Eureka Springs, Ark., March 14 – Highbridge Principal Strategies LLC priced $406.75 million of notes due April 20, 2027 in the Highbridge Loan Management 8-2016 Ltd./Highbridge Loan Management 8-2016 LLC deal, according to a market source.
The CLO sold $3 million of class X senior secured floating-rate notes (Aaa/AAA) at Libor plus 100 basis points, $248 million of 1.55% class A senior secured fixed-rate notes (Aaa/AAA) and $56 million of class B senior secured floating-rate notes (/AA) at Libor plus 240 bps.
Highbridge also priced $18 million of class C-1 mezzanine secured deferrable floating-rate notes (/A) 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 (/BBB-) at Libor plus 485 bps; $18 million of class E junior secured deferrable floating-rate notes (/BB-) at Libor plus 790 bps and $37.75 million of subordinated notes.
Morgan Stanley & Co. LLC was the placement agent.
Highbridge Principal Strategies will manage the CLO.
The CLO is non-callable until April 20, 2018 and the reinvestment period ends Oct. 20, 2020.
The deal is backed by broadly syndicated senior secured loans.
Highbridge closed on three CLO deals in 2015.
The subsidiary of Highbridge Capital Management, LLC is based in New York City.
| Issuer: | Highbridge Loan Management 8-2016 Ltd./Highbridge Loan Management 8-2016 LLC
|
| Amount: | $406.75 million
|
| Maturity: | April 20, 2027
|
| Securities: | Fixed-rate, floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Placement agent: | Morgan Stanley & Co. LLC
|
| Manager: | Highbridge Principal Strategies LLC
|
| Call feature: | April 20, 2018
|
| Pricing date: | March 4
|
| Settlement date: | April 7
|
|
|
| Class X notes
|
| Amount: | $3 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 100 bps
|
| Ratings: | Moody’s: Aaa
|
| Standard & Poor’s: AAA
|
|
|
| Class A notes
|
| Amount: | $248 million
|
| Securities: | Senior secured fixed-rate notes
|
| Coupon: | 1.55%
|
| Ratings: | Moody’s: Aaa
|
| Standard & Poor’s: AAA
|
|
|
| Class B notes
|
| Amount: | $56 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 240 bps
|
| Rating: | Standard & Poor’s: AA
|
|
|
| Class C-1 notes
|
| Amount: | $18 million
|
| Securities: | Mezzanine secured deferrable floating-rate notes
|
| Coupon: | Libor plus 375 bps
|
| Rating: | Standard & Poor’s: A
|
|
|
| Class C-2 notes
|
| Amount: | $6 million
|
| Securities: | Mezzanine secured deferrable fixed-rate notes
|
| Coupon: | 5.28%
|
| Rating: | Standard & Poor’s: A
|
|
|
| Class D notes
|
| Amount: | $20 million
|
| Securities: | Mezzanine secured deferrable floating-rate notes
|
| Coupon: | Libor plus 485 bps
|
| Rating: | Standard & Poor’s: BBB-
|
|
|
| Class E notes
|
| Amount: | $18 million
|
| Securities: | Junior secured deferrable floating-rate notes
|
| Coupon: | Libor plus 790 bps
|
| Rating: | Standard & Poor’s: BB-
|
|
|
| Equity
|
| Amount: | $37.75 million
|
| Securities: | Subordinated notes
|
| Ratings: | Non-rated
|
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