HPS prices $457.35 million; ArrowMark refinances; MidCap eyes new CLO; secondary active

By Cristal Cody

Tupelo, Miss., June 19 – HPS Investment Partners, LLC priced $457.35 million of notes in the manager’s first broadly syndicated CLO offering this year.

Meanwhile, ArrowMark Colorado Holdings LLC refinanced $367.75 million of notes from a 2015 vintage broadly syndicated CLO.

In the middle market, MidCap Financial Services Capital Management LLC is offering $509.1 million of notes in its first CLO transaction of 2019.

Year to date, about $50 billion of broadly syndicated CLOs and nearly $7 billion of middle-market CLOs have priced, according to market sources.

About $18 billion of vintage CLOs have been refinanced, reset and or reissued year to date.

In other activity, secondary market volume rose while prices declined over the past session.

On Tuesday, $306.64 million of high-grade CBO/CDO/CLO issues and $170.78 million of lower-rated issues were traded, according to Trace data.

On Monday, about $128.43 million of high-grade CBO/CDO/CLO issues and $39.64 million of non-high-grade issues traded.

The average trading price on high-grade securities on Tuesday was 99.30, while the non-high-grade CBO/CDO/CLO issues had an average 91.70 trading price.

In Monday’s session, the high-grade securities had an average trading price of 99.60. The lower-rated issues traded at an average 95.50.

HPS Investment prints

HPS Investment Partners priced $457.35 million of notes due July 20, 2030 in the new CLO deal, according to a market source.

HPS Loan Management 14-2019 Ltd./HPS Loan Management 14-2019 LLC priced $279 million of class A-1 floating-rate notes at Libor plus 127 basis points and $17.9 million of class A-2 floating-rate notes at Libor plus 152 bps.

Citigroup Global Markets Inc. was the placement agent.

HPS Investment Partners CLO (UK) LLP will manage the CLO.

The deal is backed primarily by broadly syndicated first-lien senior secured loans.

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

ArrowMark reprices

ArrowMark Colorado Holdings refinanced $367.75 million of notes due April 18, 2027 from the vintage 2015 deal, according to a notice of executed third supplemental indenture.

Elevation CLO 2015-4, Ltd./Elevation CLO 2015-4 LLC priced $252.25 million of the class A-R senior secured floating-rate notes (AAA/AAA) at Libor plus 99 bps.

Deutsche Bank Securities Inc. was the refinancing placement agent.

The original $408.1 million CLO was issued as Arrowpoint CLO 2015-4, Ltd./Arrowpoint CLO 2015-4 LLC on April 23, 2015.

In that offering, the CLO priced $252.25 million of the class A floating-rate notes at Libor plus 155 bps.

Proceeds from the refinancing were used to redeem the outstanding notes.

The refinanced CLO is backed primarily by broadly syndicated first-lien senior secured corporate loans.

In 2018, ArrowMark priced two new CLOs and refinanced one vintage CLO.

The investment management firm is based in Denver.

MidCap offers CLO

MidCap Financial Services Capital Management plans to price $509.1 million of notes due July 15, 2031 in a new middle-market CLO deal, according to a market source and a ratings release from S&P Global Ratings on Wednesday.

The Woodmont 2019-6 LP/Woodmont 2019-6 LLC deal includes $2.5 million of class X floating-rate notes (AAA); $277 million of class A-1 senior secured floating-rate notes (AAA); $25 million of class A-2 senior secured floating-rate notes (AAA); $42.5 million of class B senior secured floating-rate notes (AA); $36.5 million of class C deferrable floating-rate notes (A); $30 million of class D deferrable floating-rate notes (BBB-); $29 million of class E deferrable floating-rate notes (BB-) and $66.6 million of subordinated notes.

Citigroup Global Markets Inc. is the placement agent.

The securities are backed primarily by middle-market senior secured loans.

The transaction is expected to close July 15.

MidCap priced two new CLOs in 2018, while bringing three middle-market CLO deals in 2017.

The Bethesda, Md.-based firm is managed by Apollo Capital Management, LP, a subsidiary of Apollo Global Management LLC.

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