By Cristal Cody
Tupelo, Miss., Oct. 25 – HPS Investment Partners CLO (US), LLC priced $489.4 million of notes in a refinancing and reset of a vintage 2013 collateralized loan obligation offering, according to a market source and a notice of executed second supplemental indenture on Monday.
HPS Loan Management 2013-2 Ltd./HPS Loan Management 2013-2 LLC sold $4 million of class X senior secured floating-rate notes at Libor plus 65 basis points, $278.5 million of class A-1AR senior secured floating-rate notes at Libor plus 116 bps, $8.5 million of class A-1BR senior secured floating-rate notes at Libor plus 135 bps and $90.5 million of class A-2R senior secured floating-rate notes at Libor plus 162.5 bps.
The CLO also sold $30.5 million of class B-R senior secured deferrable floating-rate notes at Libor plus 190 bps; $32 million of class C-R senior secured deferrable floating-rate notes at Libor plus 290 bps; $17.5 million of class D-R senior secured deferrable floating-rate notes at Libor plus 660 bps; $11 million of class E-R senior secured deferrable floating-rate notes at Libor plus 825 bps and $16.9 million of additional subordinated notes.
RBC Capital Markets, LLC was the refinancing placement agent.
HPS Investment Partners CLO (US) will manage the CLO.
The maturity on the notes was extended to Oct. 20, 2029 from the original Oct. 20, 2024 maturity.
The reset notes have a two-year non-call period and a five-year reinvestment period.
In the original Highbridge Loan Management 2013-2, Ltd./Highbridge Loan Management 2013-2 LLC vehicle issued Sept. 2, 2013, the CLO priced $260 million of class A-1 senior secured floating-rate notes at Libor plus 130 bps, $43 million of class A-2 senior secured floating-rate notes at Libor plus 190 bps, $22.5 million of class B-1 senior secured deferrable floating-rate notes at Libor plus 300 bps and $9.5 million of 6% class B-2 senior secured deferrable fixed-rate notes.
Lower in the capital structure, the CLO sold $19.5 million of class C senior secured deferrable floating-rate notes at Libor plus 370 bps, $16 million of class D senior secured deferrable floating-rate notes at Libor plus 525 bps, $8 million of class E senior secured deferrable floating-rate notes at Libor plus 580 bps and $34.25 million of subordinated notes.
The deal is backed primarily by broadly syndicated senior secured corporate loans.
Proceeds were used to redeem the original notes.
The subsidiary of Highbridge Capital Management, LLC is based in New York City.
| Issuer: | HPS Loan Management 2013-2 Ltd./HPS Loan Management 2013-2 LLC
|
| Amount: | $489.4 million refinancing
|
| Maturity: | Oct. 20, 2029
|
| Securities: | Floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Refinancing agent: | RBC Capital Markets, LLC
|
| Manager: | HPS Investment Partners CLO (US), LLC
|
| Call feature: | Two years
|
| Settlement date: | Oct. 20
|
| Distribution: | Rule 144A, Regulation S
|
|
|
| Class X notes
|
| Amount: | $4 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 65 bps
|
| Rating: | Moody’s: Aaa
|
|
|
| Class A-1AR notes
|
| Amount: | $278.5 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 116 bps
|
| Ratings: | Moody’s: Aaa
|
| S&P: AAA
|
|
|
| Class A-1BR notes
|
| Amount: | $8.5 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 135 bps
|
| Rating: | Moody’s: Aaa
|
|
|
| Class A-2R notes
|
| Amount: | $90.5 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 162.5 bps
|
| Rating: | S&P: AA
|
|
|
| Class B-R notes
|
| Amount: | $30.5 million
|
| Securities: | Senior secured deferrable floating-rate notes
|
| Coupon: | Libor plus 190 bps
|
| Rating: | S&P: A
|
|
|
| Class C-R notes
|
| Amount: | $32 million
|
| Securities: | Senior secured deferrable floating-rate notes
|
| Coupon: | Libor plus 290 bps
|
| Rating: | S&P: BBB-
|
|
|
| Class D-R notes
|
| Amount: | $17.5 million
|
| Securities: | Senior secured deferrable floating-rate notes
|
| Coupon: | Libor plus 660 bps
|
| Rating: | S&P: BB-
|
|
|
| Class E-R notes
|
| Amount: | $11 million
|
| Securities: | Senior secured deferrable floating-rate notes
|
| Coupon: | Libor plus 825 bps
|
| Rating: | S&P: B-
|
|
|
| Equity
|
| Amount: | $16.9 million
|
| Securities: | Subordinated notes
|
| Ratings: | Non-rated
|
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