By Cristal Cody
Tupelo, Miss., Feb. 27 – HPS Investment Partners, LLC priced $438.5 million of notes due May 6, 2030 in a refinancing of a vintage 2017 collateralized loan obligation offering, according to a market source and a notice of executed supplemental indenture on Thursday.
HPS Loan Management 11-2017 Ltd./HPS Loan Management 11-2017 LLC sold $320 million of class A-R senior secured floating-rate notes at Libor plus 102 basis points, $57.5 million of class B-R senior secured floating-rate notes at Libor plus 155 bps, $28.5 million of class C-R secured deferrable floating-rate notes at Libor plus 195 bps, $5 million of class D-R secured deferrable floating-rate notes at Libor plus 280 bps and $27.5 million of 4.215% class D-F secured deferrable fixed-rate notes.
RBC Capital Markets, LLC was the refinancing placement agent.
HPS Investment Partners CLO (US), LLC will continue to manage the CLO.
The CLO has an extended non-call period to but excluding Feb. 27, 2021. The reinvestment period ends in May 2022.
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 were 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.
| Issuer: | HPS Loan Management 11-2017 Ltd./HPS Loan Management 11-2017 LLC
|
| Amount: | $438.5 million refinancing
|
| Maturity: | May 6, 2030
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| Securities: | Fixed- and floating-rate notes
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| Structure: | Cash flow CLO
|
| Refinancing agent: | RBC Capital Markets, LLC
|
| Manager: | HPS Investment Partners CLO (US), LLC
|
| Call feature: | To but excluding Feb. 27, 2021
|
| Settlement date: | Feb. 27
|
| Distribution: | Rule 144A and Regulation S
|
|
|
| Class A-R notes
|
| Amount: | $320 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 102 bps
|
| Ratings: | Moody’s: Aaa expected
|
| Fitch: AAA
|
|
|
| Class B-R notes
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| Amount: | $57.5 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 155 bps
|
| Rating: | Moody’s: Aa2 expected
|
|
|
| Class C-R notes
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| Amount: | $28.5 million
|
| Securities: | Secured deferrable floating-rate notes
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| Coupon: | Libor plus 195 bps
|
| Rating: | Moody’s: A2 expected
|
|
|
| Class D-R notes
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| Amount: | $5 million
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| Securities: | Secured deferrable floating-rate notes
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| Coupon: | Libor plus 280 bps
|
| Rating: | Moody’s: Baa3 expected
|
|
|
| Class D-F notes
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| Amount: | $27.5 million
|
| Securities: | Secured deferrable fixed-rate notes
|
| Coupon: | 4.215%
|
| Rating: | Moody’s: Baa3 expected
|
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