HPS Investment Partners plans $406 million minimum refinancing of 11-2017 CLO

By Cristal Cody

Tupelo, Miss., Feb. 13 – HPS Investment Partners, LLC intends to price at least $406 million of notes due May 6, 2030 in a refinancing of a vintage 2017 collateralized loan obligation offering, according to a market notice on Wednesday.

The HPS Loan Management 11-2017 Ltd./HPS Loan Management 11-2017 LLC deal includes $320 million of class A-R floating-rate notes (expected ratings Aaa//AAA); $57.5 million of class B-R floating-rate notes (expected ratings Aa2) and $28.5 million of class C-R floating-rate notes (expected ratings A2).

The deal also will include class D-R floating-rate notes (expected ratings Baa3) and class D-F fixed-rate notes (expected ratings Baa3).

RBC Capital Markets, LLC is the refinancing agent.

HPS Investment Partners CLO (US), LLC will continue to manage the CLO.

In the original $512.07 million offering issued May 25, 2017, the CLO sold $320 million of class A floating-rate notes at Libor plus 126 bps; $5.5 million of class B floating-rate notes at Libor plus 165 bps; $28.5 million of class C floating-rate notes at Libor plus 235 bps; $32.5 million of class D floating-rate notes at Libor plus 360 bps; $21.5 million of class E floating-rate notes at Libor plus 610 bps; $5.27 million of class F floating-rate notes at Libor plus 785 bps and $46.8 million of subordinated notes.

Proceeds will be used to redeem the original notes.

The CLO is backed primarily by broadly syndicated first-lien senior secured loans.

The investment management firm is based in New York City.

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