By Wendy Van Sickle
Columbus, Ohio, Sept. 18 – HPS Corporate Lending Fund announced that it priced an offering of $75 million of tranche A notes and $250 million of tranche B notes at par, according to an 8-K filing with the Securities and Exchange Commission.
The tranche A notes priced with an 8.67% interest rate and are due on Sept. 14, 2027. The tranche B notes priced with an 8.8% interest rate and are due on Sept. 14, 2028.
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 2027 notes, the fund will receive a fixed interest rate of 8.67% but pays a floating interest rate of SOFR plus 430.55 bps on $75 million of the notes.
Similarly, on the 2028 notes, the fund will receive a fixed 8.18% rate but pay SOFR plus 453.65 bps on $250 million 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 2023-B senior notes
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Trade date: | Sept. 14
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Distribution: | Private placement
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Tranche A
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Amount: | $75 million
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Maturity: | Sept. 14, 2027
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Coupon: | 8.67%
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Price: | Par
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Tranche B
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Amount: | $250 million
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Maturity: | Sept. 14, 2028
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Coupon: | 8.8%
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Price: | Par
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