HPS sells $410.15 million CLO; Invesco taps market; non-high-grade trading volume jumps

By Cristal Cody

Eureka Springs, Ark., Dec. 6 – Two CLO managers priced new CLO offerings amid the continued heavy refinancing activity in the market.

HPS Investment Partners, LLC placed a $410.15 million CLO offering in the firm’s second new deal of the year.

Invesco RR Fund LP brought a $614 million CLO deal, the company’s third new transaction in 2016.

Non-investment-grade securitized secondary trading volume soared on Monday to $652.6 million, according to Trace.

On Friday, non-investment-grade CBO/CDO/CLO issues totaling $146.7 million were traded.

High-grade securitized trading volume totaled $52.96 million on Monday, compared to $128.26 million on Friday.

HPS prices $410.15 million

HPS Investment Partners priced $410.15 million of notes due Jan. 20, 2028 in the CLO offering, 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 in the senior tranche.

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.

Invesco raises $614 million

Invesco RR Fund, a majority owned affiliate of Invesco Senior Secured Management, Inc., sold $614 million of notes due Oct. 18, 2028 in a new broadly syndicated CLO deal, according to a market source.

Riserva CLO Ltd. priced $384 million of class A floating-rate notes at Libor plus 146 bps at the top of the capital structure.

Credit Suisse Securities (USA) LLC was the placement agent.

Invesco RR Fund will manage the CLO, which has a two-year non-call period and a four-year reinvestment period.

The deal is collateralized primarily by broadly syndicated first-lien senior secured corporate loans.

Proceeds will be used to purchase a portfolio of about $600 million of mostly senior secured leveraged loans.

Invesco has priced three new CLOs and refinanced one vintage CLO year to date.

The subsidiary of Atlanta-based Invesco, Ltd. brought two CLO transactions to market in 2015.

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