Chicago, Aug. 27 – HPS Investment Partners, LLC sold $410.15 million of notes in a refinancing of a broadly syndicated collateralized loan obligation deal, according to a notice of supplemental indenture dated Aug. 23.
HPS Loan Management 10-2016, Ltd./HPS Loan Management 10-2016, LLC priced $248 million of class A-1-R senior secured floating-rate notes at Libor plus 114 basis points; $50.5 million of class A-2-R senior secured floating-rate notes at Libor plus 175 bps; $25.5 million of class B-R mezzanine secured deferrable floating-rate notes at Libor plus 240 bps; $28 million of class C mezzanine secured deferrable floating-rate notes at Libor plus 365 bps; $16 million of class D junior secured deferrable floating-rate notes at Libor plus 650 bps and $42.15 million of subordinated notes.
Citibank and Nomura Securities served as placement agents.
HPS Investment Partners is the investment manager.
The maturity was unchanged from January 2028.
The reset CLO has an extended non-call period through, but excluding, Aug. 29, 2020. The reinvestment period ends on the payment date in October 2021.
In the original transaction issued Dec. 15, 2016, the CLO priced $248 million of class A-1 senior secured floating-rate notes at Libor plus 141 bps; $50.5 million of class A-2 senior secured floating-rate notes at Libor plus 180 bps; $13.5 million of class B-1 mezzanine secured floating-rate notes at Libor plus 260 bps; $12 million of 4.69% class B-2 mezzanine secured fixed-rate notes; $28 million of class C mezzanine secured deferrable floating-rate notes at Libor plus 365 bps; $16 million of class D junior secured deferrable floating-rate notes at Libor plus 650 bps and $42.15 million of subordinated notes.
The CLO is backed primarily by broadly syndicated first-lien senior secured loans and eligible investments.
Founded in 2007, Highbridge Capital was originally formed as a division of Highbridge Capital Management within J.P. Morgan Asset Management and known as Highbridge Principal Strategies.
| Issuers: | HPS Loan Management 10-2016, Ltd./HPS Loan Management 10-2016, LLC
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| Amount: | $410.5 million refinancing
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| Maturity: | January 2028
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| Securities: | Floating-rate and subordinated notes
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| Structure: | Cash flow CLO
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| Refinancing agents: | Citigroup Global Markets Inc. and Nomura Securities International, Inc.
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| Manager: | HPS Investment Partners, LLC
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| Call feature: | Aug. 23
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| Settlement date: | Aug. 29
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| Distribution: | Rule 144A and Regulation S
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|
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| Class A-1-R notes
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| Amount: | $248 million
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| Securities: | Senior secured floating-rate notes
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| Coupon: | Libor plus 114 bps
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| Ratings: | Moody’s: Aaa
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| S&P: AAA
|
|
|
| Class A-2-R notes
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| Amount: | $50.5 million
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| Securities: | Senior secured floating-rate notes
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| Coupon: | Libor plus 175 bps
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| Rating: | Moody’s: Aa2
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|
|
| Class B-R notes
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| Amount: | $25.5 million
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| Securities: | Mezzanine secured deferrable floating-rate notes
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| Coupon: | Libor plus 240 bps
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| Rating: | Moody’s: A2
|
|
|
| Class C notes
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| Amount: | $28 million
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| Securities: | Mezzanine secured deferrable floating-rate notes
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| Coupon: | Libor plus 365 bps
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| Rating: | Moody’s: Baa3
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|
|
| Class D notes
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| Amount: | $16 million
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| Securities: | Junior secured deferrable floating-rate notes
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| Coupon: | Libor plus 650 bps
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| Rating: | Moody’s: Ba3
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|
|
| Subordinated notes
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| Amount: | $42.15 million
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| Securities: | Subordinated notes
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| Rating: | Unrated
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