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.
