HPS Corporate Capital Solutions enters $500 million five-year revolver

By Wendy Van Sickle

Columbus, Ohio, April 11 – HPS Corporate Capital Solutions Fund, entered into a senior secured revolving credit facility on April 8 with JPMorgan Chase Bank, NA as administrative agent and collateral agent, according to an 8-K filing with the Securities and Exchange Commission.

JPMorgan is also a joint bookrunner and lead arranger along with Sumitomo Mitsui Banking Corp.

The availability period will end on April 8, 2028, and the facility will mature on April 8, 2029.

The initial maximum principal amount under the agreement is $500 million, subject to availability under a borrowing base. An accordion provision permits increases to the total facility up to $1 billion.

Advances under the revolver initially bear interest at term SOFR plus an applicable margin ranging from 175 basis points to 187.5 bps, depending on the fund’s borrowing base. There is a fee on the average daily undrawn amounts of 37.5 bps.

The facility is secured by a perfected first-priority interest in substantially all of the portfolio investments held by the fund and each of the guarantors, which include certain domestic subsidiaries of the fund that will be formed or acquired by the fund in the future.

Proceeds may be used for general corporate purposes, including repaying outstanding debt, making distributions, contributions and investments, and acquisition and funding of portfolio investments.

There is a $150 million sublimit for swingline loans.

HPS is a New York-based fund that seeks to invest primarily in newly originated senior secured debt and debt securities.

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