By Cristal Cody
Tupelo, Miss., Aug. 7 – HPS Investment Partners, LLC priced $690 million of notes in a refinancing and reset of a vintage collateralized loan obligation offering, according to a market source and a notice of executed first supplemental indenture.
HPS Loan Management 9-2016 Ltd./HPS Loan Management 9-2016 LLC sold $451,875,000 of class A-1AR senior secured floating-rate notes at Libor plus 104 basis points; $28,125,000 of class A-1BR senior secured floating-rate notes at Libor plus 140 bps; $76.5 million of class A-2R senior secured floating-rate notes at Libor plus 170 bps; $58.5 million of class B-R mezzanine secured deferrable floating-rate notes at Libor plus 205 bps; $45 million of class C-R mezzanine secured deferrable floating-rate notes at Libor plus 300 bps and $30 million of class D-R junior secured deferrable floating-rate notes at Libor plus 560 bps.
BNP Paribas Securities Corp. was the refinancing placement agent.
HPS Investment Partners will manage the CLO.
The maturity on the on the notes was extended to July 19, 2030 from the original July 19, 2027 maturity. The reset CLO has a two-year non-call period and a five-year reinvestment period.
The original CLO was issued June 8, 2016. In that offering, the CLO priced $310 million of class A-1 senior secured floating-rate notes at Libor plus 156 bps; $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.
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 9-2016 Ltd./HPS Loan Management 9-2016 LLC
|
| Amount: | $690 million refinancing
|
| Maturity: | July 19, 2030
|
| Securities: | Floating-rate notes
|
| Structure: | Cash flow CLO
|
| Refinancing agent: | BNP Paribas Securities Corp.
|
| Manager: | HPS Investment Partners, LLC
|
| Call feature: | July 19, 2020
|
| Settlement date: | Aug. 2
|
| Distribution: | Rule 144A, Regulation S
|
|
|
| Class A-1AR notes
|
| Amount: | $451,875,000
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 104 bps
|
| Ratings: | Moody’s: Aaa
|
| S&P: AAA
|
|
|
| Class A-1BR notes
|
| Amount: | $28,125,000
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 140 bps
|
| Ratings: | Moody’s: Aaa
|
| S&P: Non-rated
|
|
|
| Class A-2R notes
|
| Amount: | $76.5 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 170 bps
|
| Ratings: | S&P: AA
|
|
|
| Class B-R notes
|
| Amount: | $58.5 million
|
| Securities: | Mezzanine secured deferrable floating-rate notes
|
| Coupon: | Libor plus 205 bps
|
| Ratings: | S&P: A
|
|
|
| Class C-R notes
|
| Amount: | $45 million
|
| Securities: | Mezzanine secured deferrable floating-rate notes
|
| Coupon: | Libor plus 300 bps
|
| Ratings: | S&P: BBB-
|
|
|
| Class D-R notes
|
| Amount: | $30 million
|
| Securities: | Junior secured deferrable floating-rate notes
|
| Coupon: | Libor plus 560 bps
|
| Ratings: | S&P: BB-
|
|
|
|
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