By Cristal Cody
Tupelo, Miss., Jan. 30 – HPS Investment Partners CLO (US), LLC priced $524.55 million of notes in a refinancing and reset of a vintage 2014 collateralized loan obligation offering, according to a market source and a notice of executed first supplemental indenture on Monday.
HPS Loan Management 4-2014 Ltd./HPS Loan Management 4-2014 LLC sold $5.3 million of class X senior secured floating-rate notes at Libor plus 65 basis points, $313.5 million of class A1-R senior secured floating-rate notes at Libor plus 103 bps and $101.75 million of class A2-R senior secured floating-rate notes at Libor plus 150 bps.
The CLO also sold $30.25 million of class B-R senior secured deferrable floating-rate notes at Libor plus 185 bps; $34,375,000 of class C-R senior secured deferrable floating-rate notes at Libor plus 255 bps; $19.25 million of class D-R senior secured deferrable floating-rate notes at Libor plus 555 bps; $9,625,000 of class E-R senior secured deferrable floating-rate notes at Libor plus 736 bps and $10.5 million of additional subordinated notes.
Goldman Sachs & Co. LLC was the refinancing placement agent.
HPS Investment Partners CLO (US) will manage the CLO.
The maturity on the notes was extended to Jan. 28, 2030 from the original July 28, 2025 maturity.
The reset notes have a two-year non-call period and a five-year reinvestment period.
The original CLO was issued on Aug. 28, 2014. The CLO had priced $310 million of class A-1 senior secured floating-rate notes at Libor plus 144 bps, $32 million of class A-2A senior secured floating-rate notes at Libor plus 205 bps and $30 million of 4.26% class A-2B senior secured fixed-rate notes.
Lower in the structure, the original CLO sold $38 million of class B deferrable floating-rate notes at Libor plus 300 bps; $27.5 million of class C deferrable floating-rate notes at Libor plus 365 bps; $22 million of class D deferrable floating-rate notes at Libor plus 490 bps; $9.5 million of class E deferrable floating-rate notes at Libor plus 535 bps and $44.5 million of subordinated notes.
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 4-2014 Ltd./HPS Loan Management 4-2014 LLC
|
| Amount: | $524.55 million refinancing
|
| Maturity: | Jan. 28, 2030
|
| Securities: | Floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Refinancing agent: | Goldman Sachs & Co. LLC
|
| Manager: | HPS Investment Partners CLO (US), LLC
|
| Call feature: | Two years
|
| Pricing date: | Jan. 17
|
| Settlement date: | Jan. 29
|
| Distribution: | Rule 144A, Regulation S
|
|
|
| Class X notes
|
| Amount: | $5.3 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 65 bps
|
| Rating: | S&P: AAA
|
|
|
| Class A1-R notes
|
| Amount: | $313.5 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 103 bps
|
| Ratings: | Moody’s: Aaa
|
| S&P: AAA
|
|
|
| Class A2-R notes
|
| Amount: | $101.75 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 150 bps
|
| Rating: | S&P: AA
|
|
|
| Class B-R notes
|
| Amount: | $30.25 million
|
| Securities: | Senior secured deferrable floating-rate notes
|
| Coupon: | Libor plus 185 bps
|
| Rating: | S&P: A
|
|
|
| Class C-R notes
|
| Amount: | $34,375,000
|
| Securities: | Senior secured deferrable floating-rate notes
|
| Coupon: | Libor plus 255 bps
|
| Rating: | S&P: BBB-
|
|
|
| Class D-R notes
|
| Amount: | $19.25 million
|
| Securities: | Senior secured deferrable floating-rate notes
|
| Coupon: | Libor plus 555 bps
|
| Rating: | S&P: BB-
|
|
|
| Class E-R notes
|
| Amount: | $9,625,000
|
| Securities: | Senior secured deferrable floating-rate notes
|
| Coupon: | Libor plus 736 bps
|
| Rating: | S&P: B-
|
|
|
| Equity
|
| Amount: | $10.5 million
|
| Securities: | Subordinated notes
|
| Ratings: | Non-rated
|
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