By Cristal Cody
Tupelo, Miss., Oct. 18 – Neuberger Berman Investment Advisers LLC priced $368 million of notes due Oct. 17, 2027 in the Neuberger Berman CLO XXIII, Ltd./Neuberger Berman CLO XXIII, LLC transaction, according to a market source and a notice of executed supplemental indenture on Wednesday.
The CLO sold $248 million of class A-R senior secured floating-rate notes at Libor plus 105 basis points; $52 million of class B-R senior secured floating-rate notes at Libor plus 155 bps; $26 million of class C-R mezzanine secured deferrable floating-rate notes at Libor plus 215 bps; $25 million of class D-R mezzanine secured deferrable floating-rate notes at Libor plus 290 bps and $17 million of class E-R junior secured deferrable floating-rate notes at Libor plus 575 bps.
BofA Merrill Lynch was the refinancing placement agent.
Neuberger Berman Investment Advisers will continue to manage the CLO.
The CLO has an extended non-call period that ends Jan. 17, 2020. The reinvestment period ends July 17, 2021.
In the original $412 million transaction issued Nov. 29, 2016, the CLO sold $248 million of class A senior secured floating-rate notes at Libor plus 143 bps; $52 million of class B senior secured floating-rate notes at Libor plus 180 bps; $26 million of class C mezzanine secured deferrable floating-rate notes at Libor plus 255 bps; $25 million of class D mezzanine secured deferrable floating-rate notes at Libor plus 377 bps; $17 million of class E junior secured deferrable floating-rate notes at Libor plus 658 bps and $44 million of subordinated notes.
Proceeds will be used to redeem the original notes.
The deal is backed predominantly by broadly syndicated first-lien senior secured corporate loans and eligible investments.
The Chicago-based firm is part of Neuberger Berman Group, LLC.
| Issuer: | Neuberger Berman CLO XXIII, Ltd./Neuberger Berman CLO XXIII, LLC
|
| Amount: | $368 million refinancing
|
| Maturity: | Oct. 17, 2027
|
| Securities: | Floating-rate notes
|
| Structure: | Cash flow CLO
|
| Refinancing agent: | BofA Merrill Lynch
|
| Manager: | Neuberger Berman Investment Advisers LLC
|
| Call feature: | Jan. 17, 2020
|
| Pricing date: | Sept. 20
|
| Settlement date: | Oct. 17
|
| Distribution: | Rule 144A, Regulation S
|
|
|
| Class A-R notes
|
| Amount: | $248 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 105 bps
|
| Ratings: | Moody’s: Aaa
|
| S&P: AAA
|
|
|
| Class B-R notes
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| Amount: | $52 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 155 bps
|
| Rating: | Moody’s: Aa2
|
|
|
| Class C-R notes
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| Amount: | $26 million
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| Securities: | Mezzanine secured deferrable floating-rate notes
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| Coupon: | Libor plus 215 bps
|
| Rating: | Moody’s: A2
|
|
|
| Class D-R notes
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| Amount: | $25 million
|
| Securities: | Mezzanine secured deferrable floating-rate notes
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| Coupon: | Libor plus 290 bps
|
| Rating: | Moody’s: Baa3
|
|
|
| Class E-R notes
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| Amount: | $17 million
|
| Securities: | Junior secured deferrable floating-rate notes
|
| Coupon: | Libor plus 575 bps
|
| Rating: | Moody’s: Ba3
|
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