By Cristal Cody
Tupelo, Miss., Feb. 27 – HPS Investment Partners, LLC priced $438.5 million of notes due May 6, 2030 in a refinancing of a vintage 2017 collateralized loan obligation offering, according to a market source and a notice of executed supplemental indenture on Thursday.
HPS Loan Management 11-2017 Ltd./HPS Loan Management 11-2017 LLC sold $320 million of class A-R senior secured floating-rate notes at Libor plus 102 basis points, $57.5 million of class B-R senior secured floating-rate notes at Libor plus 155 bps, $28.5 million of class C-R secured deferrable floating-rate notes at Libor plus 195 bps, $5 million of class D-R secured deferrable floating-rate notes at Libor plus 280 bps and $27.5 million of 4.215% class D-F secured deferrable fixed-rate notes.
RBC Capital Markets, LLC was the refinancing placement agent.
HPS Investment Partners CLO (US), LLC will continue to manage the CLO.
The CLO has an extended non-call period to but excluding Feb. 27, 2021. The reinvestment period ends in May 2022.
In the original $512.07 million offering issued May 25, 2017, the CLO sold $320 million of class A floating-rate notes at Libor plus 126 bps; $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.
Proceeds were used to redeem the original notes.
The CLO is backed primarily by broadly syndicated first-lien senior secured loans.
The investment management firm is based in New York City.
Issuer: | HPS Loan Management 11-2017 Ltd./HPS Loan Management 11-2017 LLC
|
Amount: | $438.5 million refinancing
|
Maturity: | May 6, 2030
|
Securities: | Fixed- and floating-rate notes
|
Structure: | Cash flow CLO
|
Refinancing agent: | RBC Capital Markets, LLC
|
Manager: | HPS Investment Partners CLO (US), LLC
|
Call feature: | To but excluding Feb. 27, 2021
|
Settlement date: | Feb. 27
|
Distribution: | Rule 144A and Regulation S
|
|
Class A-R notes
|
Amount: | $320 million
|
Securities: | Senior secured floating-rate notes
|
Coupon: | Libor plus 102 bps
|
Ratings: | Moody’s: Aaa expected
|
| Fitch: AAA
|
|
Class B-R notes
|
Amount: | $57.5 million
|
Securities: | Senior secured floating-rate notes
|
Coupon: | Libor plus 155 bps
|
Rating: | Moody’s: Aa2 expected
|
|
Class C-R notes
|
Amount: | $28.5 million
|
Securities: | Secured deferrable floating-rate notes
|
Coupon: | Libor plus 195 bps
|
Rating: | Moody’s: A2 expected
|
|
Class D-R notes
|
Amount: | $5 million
|
Securities: | Secured deferrable floating-rate notes
|
Coupon: | Libor plus 280 bps
|
Rating: | Moody’s: Baa3 expected
|
|
Class D-F notes
|
Amount: | $27.5 million
|
Securities: | Secured deferrable fixed-rate notes
|
Coupon: | 4.215%
|
Rating: | Moody’s: Baa3 expected
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.