By Cristal Cody
Tupelo, Miss., July 12 – HPS Investment Partners, LLC priced $486.1 million of notes in a refinancing and reset of a vintage 2014 collateralized loan obligation offering, according to a market source and a notice of proposed supplemental indenture.
HPS Loan Management 3-2014 Ltd./HPS Loan Management 3-2014 LLC sold $4 million of class X senior secured floating-rate notes at Libor plus 80 basis points, $310 million of class A-1R senior secured floating-rate notes at Libor plus 118 bps and $68 million of class A-2R senior secured floating-rate notes at Libor plus 170 bps.
The CLO also sold $32 million of class B-R senior secured deferrable floating-rate notes at Libor plus 240 bps; $30 million of class C-R senior secured deferrable floating-rate notes at Libor plus 360 bps; $20 million of class D-R senior secured deferrable floating-rate notes at Libor plus 650 bps; $6 million of class E-R senior secured deferrable floating-rate notes at Libor plus 825 bps and $16.1 million of additional subordinated notes.
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.
| Issuer: | HPS Loan Management 3-2014 Ltd./HPS Loan Management 3-2014 LLC
|
| Amount: | $486.1 million refinancing
|
| Maturity: | July 18, 2029
|
| Securities: | Floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Refinancing agent: | Citigroup Global Markets Inc.
|
| Manager: | HPS Investment Partners CLO (US), LLC
|
| Call feature: | Two years
|
| Notice date: | July 7
|
| Settlement date: | July 18
|
| Distribution: | Rule 144A, Regulation S
|
|
|
| Class X notes
|
| Amount: | $4 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 80 bps
|
| Rating: | Moody’s: Aaa
|
|
|
| Class A-1R notes
|
| Amount: | $310 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 118 bps
|
| Ratings: | Moody’s: Aaa
|
| S&P: AAA
|
|
|
| Class A-2R notes
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| Amount: | $68 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 170 bps
|
| Rating: | S&P: AA
|
|
|
| Class B-R notes
|
| Amount: | $32 million
|
| Securities: | Senior secured deferrable floating-rate notes
|
| Coupon: | Libor plus 240 bps
|
| Rating: | S&P: A
|
|
|
| Class C-R notes
|
| Amount: | $30 million
|
| Securities: | Senior secured deferrable floating-rate notes
|
| Coupon: | Libor plus 360 bps
|
| Rating: | S&P: BBB
|
|
|
| Class D-R notes
|
| Amount: | $20 million
|
| Securities: | Senior secured deferrable floating-rate notes
|
| Coupon: | Libor plus 650 bps
|
| Rating: | S&P: BB
|
|
|
| Class E-R notes
|
| Amount: | $6 million
|
| Securities: | Senior secured deferrable floating-rate notes
|
| Coupon: | Libor plus 825 bps
|
| Rating: | S&P: B-
|
|
|
| Equity
|
| Amount: | $16.1 million
|
| Securities: | Subordinated notes
|
| Ratings: | Non-rated
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