By Cristal Cody
Tupelo, Miss., June 20 – Neuberger Berman Fixed Income LLC sold $569.75 million of notes due Aug. 15, 2025 in the Neuberger Berman CLO XVII, Ltd./Neuberger Berman CLO XVII, LLC transaction, according to a market source on Friday.
The CLO priced $4 million of class X senior secured floating-rate notes (Aaa/AAA/) at par to yield Libor plus 100 basis points and $338.25 million of class A senior secured floating-rate notes (Aaa/AAA/) at par to yield Libor plus 147 bps.
The CLO sold $74.25 million of class B senior secured floating-rate notes (/AA/) at par to yield Libor plus 210 bps; $41.25 million of class C deferrable floating-rate notes (/A/) at 97.15 to yield Libor plus 276 bps; $28,875,000 of class D deferrable floating-rate notes (/BBB-/) at 94.77 to yield Libor plus 355 bps; $23,125,000 of class E-1 deferrable floating-rate notes (/BB-/) at 89.91 to yield Libor plus 475 bps and $3 million of class E-2 deferrable floating-rate notes (/BB-/) at 94.64 to yield Libor plus 550 bps.
The deal also included $57 million of subordinated notes.
Morgan Stanley & Co. LLC was the placement agent.
Neuberger Berman Fixed Income will manage the CLO, which is backed primarily by a revolving pool of broadly syndicated senior secured loans.
The CLO has a two-year non-call period and a four-year reinvestment period.
Neuberger Berman was last in the primary market on Feb. 11 with the $572 million Neuberger Berman CLO XVI, Ltd./Neuberger Berman CLO XVI, LLC transaction.
The Chicago-based firm, part of Neuberger Berman Group, LLC, brought two CLO deals in 2013.
| Issuer: | Neuberger Berman CLO XVII, Ltd./Neuberger Berman CLO XVII, LLC
|
| Amount: | $569.75 million
|
| Maturity: | Aug. 15, 2025
|
| Securities: | Floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Placement agent: | Morgan Stanley & Co. LLC
|
| Manager: | Neuberger Berman Fixed Income LLC
|
| Call feature: | August 2016
|
| Pricing date: | June 19
|
| Settlement date: | July 15
|
| Distribution: | Rule 144A/Regulation S
|
|
|
| Class X notes
|
| Amount: | $4 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 100 bps
|
| Price: | Par
|
| Ratings: | Moody’s: Aaa
|
| Standard & Poor’s: AAA
|
|
|
| Class A notes
|
| Amount: | $338.25 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 147 bps
|
| Price: | Par
|
| Ratings: | Moody’s: Aaa
|
| Standard & Poor’s: AAA
|
|
|
| Class B notes
|
| Amount: | $74.25 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 210 bps
|
| Price: | Par
|
| Rating: | Standard & Poor’s: AA
|
|
|
| Class C notes
|
| Amount: | $41.25 million
|
| Securities: | Deferrable floating-rate notes
|
| Yield: | Libor plus 276 bps
|
| Price: | 97.15
|
| Rating: | Standard & Poor’s: A
|
|
|
| Class D notes
|
| Amount: | $28,875,000
|
| Securities: | Deferrable floating-rate notes
|
| Yield: | Libor plus 355 bps
|
| Price: | 94.77
|
| Rating: | Standard & Poor’s: BBB-
|
|
|
| Class E-1 notes
|
| Amount: | $23,125,000
|
| Securities: | Deferrable floating-rate notes
|
| Yield: | Libor plus 475 bps
|
| Price: | 89.91
|
| Rating: | Standard & Poor’s: BB-
|
|
|
| Class E-2 notes
|
| Amount: | $3 million
|
| Securities: | Deferrable floating-rate notes
|
| Yield: | Libor plus 550 bps
|
| Price: | 94.64
|
| Rating: | Standard & Poor’s: BB-
|
|
|
| Equity tranche
|
| Amount: | $57 million
|
| Securities: | Subordinated notes
|
| Rating: | Non-rated
|
|
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