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HPS Prices $405M Strata CLO that will Feature CCC+Debt (and Below)

Citi yesterday priced the $405.3 million Strata CLO I from HPS Investment Partners LLC, according to market sources.

Up to 50% of the portfolio can be invested in assets rated CCC+/Caa1 and below, according to sources. This is the first such transaction from the manager, who has also issued two new issues this year out of its HPS Loan Management platform, and is structurally similar to those issued by Ellington Management.

Pricing details are as follows:

Strata CLO 2018-11-27

The transaction will close on Dec. 20 with the non-call period running until January 2021 and the reinvestment period ending in January 2023. The legal final maturity is in January 2031.

Year-to-date new issuance is now $121.3 billion from 226 CLOs, according to LCD data. November totals are now $11.26 billion from 22 new issues. — Andrew Park

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