By Cristal Cody
Tupelo, Miss., April 21 – Neuberger Berman Investment Advisers LLC sold $568.7 million of notes in a refinancing and reset of the vintage 2014 Neuberger Berman CLO XVII, Ltd./Neuberger Berman CLO XVII LLC transaction, according to a market source.
The CLO priced $8.5 million of class X-R senior secured floating-rate notes at Libor plus 100 basis points; $336.4 million of class A-R senior secured floating-rate notes at Libor plus 118 bps; $54.3 million of class B-1-R senior secured floating-rate notes at Libor plus 165 bps; $15 million of 3.88% class B-2-R senior secured fixed-rate notes; $42.8 million of class C-R mezzanine secured deferrable floating-rate notes at Libor plus 245 bps; $29.5 million of class D-R mezzanine secured deferrable floating-rate notes at Libor plus 355 bps; $25.2 million of class E-R junior secured deferrable floating-rate notes at Libor plus 630 bps and $57 million of subordinated notes.
J.P. Morgan Securities LLC was the refinancing agent.
Neuberger Berman Investment Advisers is the CLO manager.
The maturity on the refinanced notes was extended to April 22, 2029 from the original Aug. 4, 2025 maturity.
The refinanced CLO has a two-year non-call period and a five-year reinvestment period.
The deal is backed predominantly by broadly syndicated first-lien senior secured corporate loans.
In the original transaction priced on June 19, 2014, the CLO sold $4 million of class X senior secured floating-rate notes at par to yield Libor plus 100 bps; $338.25 million of class A senior secured floating-rate notes at par to yield Libor plus 147 bps; $74.25 million of class B senior secured floating-rate notes at par to yield Libor plus 210 bps; $41.25 million of class C deferrable floating-rate notes at 97.15 and a coupon of Libor plus 276 bps; $28,875,000 of class D deferrable floating-rate notes at 94.77 and a coupon of Libor plus 355 bps; $23,125,000 of class E-1 deferrable floating-rate notes at 89.91 and a coupon of Libor plus 475 bps and $3 million of class E-2 deferrable floating-rate notes at 94.64 and a coupon of Libor plus 550 bps.
Proceeds will be used to redeem the original notes.
The CLO manager has priced one new CLO and refinanced one vintage CLO year to date.
Neuberger priced two new CLOs and refinanced tranches from three vintage CLOs in 2016.
The Chicago-based firm is part of Neuberger Berman Group, LLC.
| Issuer: | Neuberger Berman CLO XVII, Ltd./Neuberger Berman CLO XVII LLC
|
| Amount: | $568.7 million refinancing
|
| Maturity: | April 22, 2029
|
| Securities: | Fixed-rate, floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Refinancing agent: | J.P. Morgan Securities LLC
|
| Manager: | Neuberger Berman Investment Advisers LLC
|
| Call feature: | April 22, 2019
|
| Settlement date: | May 4
|
|
|
| Class X-R notes
|
| Amount: | $8.5 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 100 bps
|
| Ratings: | Moody’s: Aaa
|
| S&P: AAA
|
|
|
| Class A-R notes
|
| Amount: | $336.4 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 118 bps
|
| Ratings: | Moody’s: Aaa
|
| S&P: AAA
|
|
|
| Class B-1-R notes
|
| Amount: | $54.3 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 165 bps
|
| Rating: | S&P: AA
|
|
|
| Class B-2-R notes
|
| Amount: | $15 million
|
| Securities: | Senior secured fixed-rate notes
|
| Coupon: | 3.88%
|
| Rating: | S&P: AA
|
|
|
| Class C-R notes
|
| Amount: | $42.8 million
|
| Securities: | Mezzanine secured deferrable floating-rate notes
|
| Coupon: | Libor plus 245 bps
|
| Rating: | S&P: A
|
|
|
| Class D-R notes
|
| Amount: | $29.5 million
|
| Securities: | Mezzanine secured deferrable floating-rate notes
|
| Coupon: | Libor plus 355 bps
|
| Rating: | S&P: BBB
|
|
|
| Class E-R notes
|
| Amount: | $25.2 million
|
| Securities: | Junior secured deferrable floating-rate notes
|
| Coupon: | Libor plus 630 bps
|
| Rating: | S&P: BB-
|
|
|
| Equity
|
| Amount: | $57 million
|
| Securities: | Subordinated notes
|
| Ratings: | Non-rated
|
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