By Cristal Cody
Tupelo, Miss., Oct. 18 – HPS Investment Partners LLC priced $470.75 million of notes in a second refinancing of a 2015 collateralized loan obligation transaction, according to a market source and a notice of executed second supplemental indenture and amended and restated collateral administration agreement on Thursday.
HPS Loan Management 5-2015 Ltd./HPS Loan Management 5-2015 LLC sold $4.5 million of class X-RR senior secured floating-rate notes at Libor plus 55 basis points, $295 million of class A1-RR floating-rate notes at Libor plus 115 bps, $30 million of class A-2-RR senior secured floating-rate notes at Libor plus 145 bps, $26.25 million of class B-1-RR senior secured floating-rate notes at Libor plus 175 bps and $25 million of 4.83% class B-2-RR senior secured fixed-rate notes.
The CLO also priced $33.75 million of class C-RR mezzanine secured deferrable floating-rate notes at Libor plus 225 bps, $27.5 million of class D-RR mezzanine secured deferrable floating-rate notes at Libor plus 315 bps, $20 million of class E-RR mezzanine secured deferrable floating-rate notes at Libor plus 600 bps and $8.75 million of class F-RR mezzanine secured deferrable floating-rate notes at Libor plus 800 bps.
Morgan Stanley & Co. LLC was the refinancing placement agent.
The maturity on the refinanced notes was extended to Oct. 15, 2030 from Jan. 29, 2026.
The reset CLO will have a two-year non-call period and a five-year reinvestment period.
The original CLO, named Highbridge Loan Management 5-2015 Ltd./Highbridge Loan Management 5-2015 LLC, was issued Jan. 22, 2015 and was first refinanced on June 16, 2017.
Proceeds from the second refinancing were used to redeem the outstanding notes.
The management firm is based in New York City.
| Issuer: | HPS Loan Management 5-2015 Ltd./HPS Loan Management 5-2015 LLC
|
| Amount: | $470.75 million refinancing
|
| Maturity: | Oct. 15, 2030
|
| Securities: | Floating-rate notes
|
| Structure: | Cash flow CLO
|
| Refinancing agent: | Morgan Stanley & Co. LLC
|
| Manager: | HPS Investment Partners LLC
|
| Call feature: | Two years
|
| Settlement date: | Oct. 16
|
| Distribution: | Rule 144A, Regulation S
|
|
|
| Class X-RR notes
|
| Amount: | $4.5 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 55 bps
|
| Ratings: | S&P: AAA
|
| Fitch: AAA
|
|
|
| Class A1-RR notes
|
| Amount: | $295 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 115 bps
|
| Ratings: | S&P: AAA
|
| Fitch: AAA
|
|
|
| Class A2-RR notes
|
| Amount: | $30 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 145 bps
|
| Ratings: | S&P: Non-rated
|
| Fitch: AAA
|
|
|
| Class B-1-RR notes
|
| Amount: | $26.25 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 175 bps
|
| Rating: | S&P: AA
|
|
|
| Class B-2-RR notes
|
| Amount: | $25 million
|
| Securities: | Senior secured fixed-rate notes
|
| Coupon: | 4.83%
|
| Rating: | S&P: AA
|
|
|
| Class C-RR notes
|
| Amount: | $33.75 million
|
| Securities: | Mezzanine secured deferrable floating-rate notes
|
| Coupon: | Libor plus 225 bps
|
| Rating: | S&P: A
|
|
|
| Class D-RR notes
|
| Amount: | $27.5 million
|
| Securities: | Mezzanine secured deferrable floating-rate notes
|
| Coupon: | Libor plus 315 bps
|
| Rating: | S&P: BBB-
|
|
|
| Class E-RR notes
|
| Amount: | $20 million
|
| Securities: | Junior secured deferrable floating-rate notes
|
| Coupon: | Libor plus 600 bps
|
| Rating: | S&P: BB-
|
|
|
| Class F-RR notes
|
| Amount: | $8.75 million
|
| Securities: | Junior secured deferrable floating-rate notes
|
| Coupon: | Libor plus 800 bps
|
| Rating: | S&P: B-
|
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