HPS Investment Partners reprices $486.1 million CLO notes; secondary market volume thin

By Cristal Cody

Tupelo, Miss., July 12 – Details emerged for a new refinancing and reset transaction from HPS Investment Partners, LLC.

The CLO manager priced $486.1 million of notes in a refinancing of a vintage 2014 CLO.

Nearly $100 billion of CLOs have been refinanced or reset year to date, while more than $50 billion of new CLOs have priced in 2017, according to market sources.

In other activity, $34.86 million of high-grade CBO/CDO/CLO issues and $132.54 million of non-high-grade securities were traded on Monday, according to the latest data available from Trace.

HPS resets 3-2014 CLO

HPS Investment Partners priced $486.1 million of notes in a refinancing and reset of the HPS Loan Management 3-2014 Ltd./HPS Loan Management 3-2014 LLC transaction, according to a market source and a notice of proposed supplemental indenture.

HPS Loan Management 3-2014 sold $310 million of class A-1R senior secured floating-rate notes at Libor plus 118 bps at the top of the capital stack.

Citigroup Global Markets Inc. was the refinancing placement agent.

HPS Investment Partners CLO (US), LLC will manage the CLO.

The maturity on the notes was extended to July 18, 2029 from the original Jan. 18, 2025 maturity. The transaction originally closed on Jan. 30, 2014.

The reset notes have a two-year non-call period and a five-year reinvestment period.

The deal is backed primarily by broadly syndicated senior secured corporate loans.

Proceeds will be used to redeem the original notes.

The subsidiary of Highbridge Capital Management, LLC is based in New York City.

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