HPS Corporate wraps placement of $170 million tranche A, $155 million tranche B notes

By Wendy Van Sickle

Columbus, Ohio, Nov. 15 – HPS Corporate Lending Fund announced that it closed its previously announced placement 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, as reported on Nov. 8. At that time, the company said there was no guarantee of successful placement.

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.

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.

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