By Cristal Cody
Tupelo, Miss., April 28 – HPS Investment Partners, LLC priced $512.07 million of notes due May 6, 2030 in a new collateralized loan obligation offering, according to a market source.
HPS Loan Management 11-2017 Ltd./HPS Loan Management 11-2017 LLC sold $320 million of class A floating-rate notes at Libor plus 126 basis points; $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.
RBC Capital Markets, LLC was the placement agent.
HPS Investment Partners CLO (US), LLC will manage the CLO.
The CLO has a two-year non-call period and a five-year reinvestment period.
The deal is backed primarily by broadly syndicated first-lien senior secured loans.
Proceeds will be used to purchase a portfolio of about $500 million of mostly first-lien senior secured leveraged loans.
Highbridge priced two U.S. CLO transactions in 2016.
The subsidiary of Highbridge Capital Management, LLC is based in New York City.
| Issuer: | HPS Loan Management 11-2017 Ltd./HPS Loan Management 11-2017 LLC
|
| Amount: | $512.07 million
|
| Maturity: | May 6, 2030
|
| Securities: | Floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Placement agent: | RBC Capital Markets, LLC
|
| Manager: | HPS Investment Partners CLO (US), LLC
|
| Call feature: | Two years
|
| Settlement date: | May 25
|
| Distribution: | Rule 144A
|
|
|
| Class A notes
|
| Amount: | $320 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 126 bps
|
| Rating: | Fitch: AAA
|
|
|
| Class B notes
|
| Amount: | $57.5 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 165 bps
|
| Rating: | Non-rated
|
|
|
| Class C notes
|
| Amount: | $28.5 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 235 bps
|
| Ratings: | Non-rated
|
|
|
| Class D notes
|
| Amount: | $32.5 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 360 bps
|
| Ratings: | Non-rated
|
|
|
| Class E notes
|
| Amount: | $21.5 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 610 bps
|
| Ratings: | Non-rated
|
|
|
| Class F notes
|
| Amount: | $5.27 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 785 bps
|
| Ratings: | Non-rated
|
|
|
| Equity
|
| Amount: | $46.8 million
|
| Securities: | Subordinated notes
|
| Ratings: | Non-rated
|
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