Highbridge Principal Strategies is planning a $469 million collateralized loan obligation, according to a Standard & Poor’s presale report. 

The transaction, Highbridge Loan Management 2014-4, will be backed by a revolving pool consisting of primarily broadly syndicated senior secured loans. 

Eight tranches of notes will be issued in total, but only the $310 million class A-1 notes received preliminary ‘AAA’ ratings, offered at a spread of three-month Libor plus 143 basis points.  The triple-A notes benefit from credit enhancement of 39.63%.  The class B, C, D, and E notes are deferrable.  S&P will not rate the subordinated notes.

All notes have relatively standard non-call period of two years, with a four year reinvestment period.

The lead arrangers are Merrill Lynch, Pierce, Fenner & Smith.

Highbride Loan Management 4-2014 will be the fourth Highbridge CLO to be rated by S&P.  As of March 2014, Highbridge has $1.02 billion in total assets under management.

The last two CLOs, Highbridge Loan Management 3-2014 in January 2014, and Highbridge Loan Management 2013-2, from September 2013, each offered approximately $375 million in notes backed by a revolving pool of broadly syndicated senior secured loans.

Highbridge Principal Strategies is a global credit and private investment firm, investing across capital structure in the public and private capital markets.  HPS is a subsidiary of Highbridge Capital Management—founded in 1992—and J.P. Morgan Asset Management.

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.