BlackRock’s HLEND Raises $600M in Notes Two Weeks After Paying $610M in Redemptions
HPS Corporate Lending Fund priced $600 million in aggregate principal amount of 6.3% notes due 2031, completing the offering on May 19 — about two weeks after the BlackRock-advised nontraded business development company paid approximately $610.8 million to repurchase shares in its first-quarter 2026 tender.
The notes, sold to institutional investors in a private placement, mature on Aug. 19, 2031, and carry semi-annual interest payments beginning Feb. 19, 2027. Net proceeds to the fund were approximately $594.3 million after initial purchaser discounts and estimated offering expenses. The fund said it intends to use the proceeds to make new investments, pay down existing borrowings, and for general corporate purposes.
The offering is the 11th supplement to a base indenture the fund established in January 2024, reflecting the frequency with which HLEND — the fund’s common ticker — has accessed institutional debt markets to expand its capital structure. In June 2024, the fund raised $400 million in 6.25% notes due 2029 in an earlier private placement under the same indenture.
Alongside the offering, the fund entered an interest rate swap agreement that converts its fixed-rate obligation on the notes to floating. Under the swap, the fund receives a fixed rate of 6.3% per annum and pays a floating rate of three-month term secured overnight financing rate plus 2.394% on the $600 million notional amount. The structure aligns the cost of the new notes with HLEND’s investment portfolio, which consists predominantly of floating-rate loans.
Six banks acted as initial purchasers: Wells Fargo Securities, BNP Paribas Securities, Goldman Sachs, Morgan Stanley, SMBC Nikko Securities America, and Truist Securities.
The timing of the notes offering comes as the fund manages elevated redemption pressure. As AltsWire reported on May 2, HLEND paid approximately $610.8 million on April 30 to repurchase shares tendered in its first-quarter 2026 repurchase offer, accepting roughly 54% of shares investors sought to redeem — the fund’s standard 5% quarterly cap. That quarter marked the first time HLEND had capped redemptions since its January 2022 launch, after repurchase requests reached 9.3% of outstanding shares, nearly double the cap.
HLEND targets newly originated senior secured debt and other securities of private U.S. companies within the middle and upper middle markets. HPS Investment Partners, the fund’s adviser, was acquired by BlackRock (NYSE:BLK) in July 2025 in an all-stock deal valued at approximately $12 billion, bringing HLEND under BlackRock while retaining the HPS brand within BlackRock’s Private Financing Solutions platform.
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