HPS Investment brings €394.11 million CLO; non-high-grade CBO/CDO/CLO paper improves

By Cristal Cody

Tupelo, Miss., Sept. 3 – HPS Investment Partners CLO (UK), LLP issued €394.11 million of notes in the manager’s first CLO of the year.

More than €13 billion of euro-denominated CLOs have priced so far this year with market sources anticipating about €20 billion of volume for the year.

Dollar-denominated new issue supply totals about $48 billion year to date.

In secondary trading this week, steady volume was seen with $285.1 million of high-grade CBO/CDO/CLO paper traded on Wednesday, up from $262.52 million on Tuesday.

High-grade paper softened to an average 97.80 from 99.10 on Tuesday.

Non-investment-grade CBO/CDO/CLO notes averaged higher on Wednesday at 82.80 from 81.70 on Tuesday.

In its deal, HPS Investment Partners CLO (UK) issued €394.11 million of notes due April 20, 2032 in the Aqueduct European CLO 5-2020 DAC deal, according to market sources.

Aqueduct European CLO 5-2020 sold €234 million of class A floating-rate notes at Euribor plus 145 basis points at the top of the capital stack.

BNP Paribas Securities Corp. was the placement agent.

The deal is backed primarily by euro-denominated broadly syndicated senior secured loans and bonds.

The firm is a subsidiary of New York–based investment firm HPS Investment Partners LLC.

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