HPS Corporate Lending Fund received third-quarter repurchase requests representing approximately 11.5% of its shares outstanding as of June 30, exceeding the nontraded BDC’s quarterly repurchase limit. The requests declined from approximately 13.3% of outstanding shares during the second quarter.
The fund plans to repurchase shares equal to 5% of those outstanding, representing approximately $600 million. Based on the preliminary percentages, participating investors would have approximately 43% of their requested shares repurchased, subject to final processing and the terms of the tender offer.
HPS reported that it repurchased approximately $1.7 billion of shares during the three repurchase periods ended June 30. According to the fund, it completed those repurchases while keeping leverage near the lower end of its target range and maintaining substantial available liquidity.
As of June 30, the fund held investments in 359 companies across 53 industries, with approximately 95% of the portfolio invested in first-lien, senior-secured loans. Its private portfolio companies generated 12.4% revenue growth and 14.1% EBITDA growth during the 12 months ended June 30, while weighted-average interest coverage was 2.3 times.
HPS also reported a 9.9% annualized total net return for Class I shares from inception through July 31 and a 9.8% annualized Class I distribution rate for August. The tender results nevertheless indicate that shareholder liquidity demand remains well above the amount available through the fund’s quarterly repurchase program.
