By Cristal Cody
Eureka Springs, Ark., May 2 – Highbridge Principal Strategies LLC priced a $502.55 million collateralized loan obligation offering, according to a market source.
HPS Loan Management 9-2016 Ltd./HPS Loan Management 9-2016 LLC sold $310 million of class A-1 senior secured floating-rate notes at Libor plus 156 basis points; $65 million of class A-2 senior secured floating-rate notes at Libor plus 225 bps; $30 million of class B mezzanine secured deferrable floating-rate notes at Libor plus 330 bps; $29 million of class C mezzanine secured deferrable floating-rate notes at Libor plus 530 bps; $7 million of class D-1 junior secured deferrable floating-rate notes at Libor plus 800 bps; $19 million of class D-2 junior secured deferrable floating-rate notes at Libor plus 645 bps and $42.55 million of subordinated notes.
Citigroup Global Markets Inc. was the placement agent.
Highbridge Principal Strategies will manage the CLO.
The notes are due May 15, 2028.
The transaction has a two-year non-call period and a four-year reinvestment period.
The CLO is backed by broadly syndicated senior secured loans.
Highbridge has priced two U.S. CLO transactions year to date.
The subsidiary of Highbridge Capital Management, LLC is based in New York City.
| Issuer: | HPS Loan Management 9-2016 Ltd./HPS Loan Management 9-2016
|
| Amount: | $502.55 million
|
| Maturity: | May 15, 2028
|
| Securities: | Floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Placement agent: | Citigroup Global Markets Inc.
|
| Manager: | Highbridge Principal Strategies LLC
|
| Call feature: | Two years
|
| Pricing date: | April 27
|
| Settlement date: | May 15
|
|
|
| Class A-1 notes
|
| Amount: | $310 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 156 bps
|
| Ratings: | Moody’s: Aaa
|
| S&P: AAA
|
|
|
| Class A-2 notes
|
| Amount: | $65 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 225 bps
|
| Rating: | Moody’s: Aa2
|
|
|
| Class B notes
|
| Amount: | $30 million
|
| Securities: | Mezzanine secured deferrable floating-rate notes
|
| Coupon: | Libor plus 330 bps
|
| Rating: | Moody’s: A2
|
|
|
| Class C notes
|
| Amount: | $29 million
|
| Securities: | Mezzanine secured deferrable floating-rate notes
|
| Coupon: | Libor plus 530 bps
|
| Rating: | Moody’s: Baa3
|
|
|
| Class D-1 notes
|
| Amount: | $7 million
|
| Securities: | Junior secured deferrable floating-rate notes
|
| Coupon: | Libor plus 800 bps
|
| Rating: | Moody’s: Ba3
|
|
|
| Class D-2 notes
|
| Amount: | $19 million
|
| Securities: | Junior secured deferrable floating-rate notes
|
| Coupon: | Libor plus 645 bps
|
| Rating: | Moody’s: Ba3
|
|
|
| Equity
|
| Amount: | $42.55 million
|
| Securities: | Subordinated notes
|
| Ratings: | Non-rated
|
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