Chicago, Nov. 8 – HPS Corporate Lending Fund announced that it priced an offering of $170 million of tranche A notes and $155 million of tranche B notes, according to an 8-K filing with the Securities and Exchange Commission.
The series A senior notes, covering both tranches, priced on Oct. 28.
The tranche A notes priced with an 8.37% interest rate and are due on Nov. 14, 2025. The tranche B notes priced with an 8.43% interest rate and are due on Nov. 14, 2027.
If the notes lose their investment-grade rating, the interest rate will step up to a maximum increase of 200 basis points.
Closing is expected to occur on Nov. 14, but the company said there was no guarantee of successful placement.
In connection with the notes, the fund entered into interest rate swap agreements. For the 2025 notes, the fund pays an 8.37% interest rate but pays a floating interest rate of SOFR plus 408 bps on $85 million of the notes.
Similarly, on the 2027 notes, the fund will pay a fixed 8.43% on the notes but SOFR plus 442 bps on $77.5 of the notes.
The New York-based fund seeks to invest primarily in newly originated senior secured debt and debt securities.
| Issuer: | HPS Corporate Lending Fund
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| Amount: | $325 million
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| Issue: | Series A senior notes
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| Trade date: | Oct. 28
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| Settlement date: | Nov. 14
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| Distribution: | Private placement
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| Tranche A
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| Amount: | $170 million
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| Maturity: | Nov. 14, 2025
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| Coupon: | 8.37%
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|
|
| Tranche B
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| Amount: | $155 million
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| Maturity: | Nov. 14, 2027
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| Coupon: | 8.43%
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