Neuberger Berman Fixed Income preps $511.25 million CLO XX offering

By Cristal Cody

Tupelo, Miss., Oct. 29 – Neuberger Berman Fixed Income LLC is in the pipeline with $511.25 million of notes due Jan. 15, 2028 in a new collateralized loan obligation transaction, according to a market source.

The Neuberger Berman CLO XX, Ltd./Neuberger Berman CLO XX, LLC deal includes $3 million of class X floating-rate notes (//AAA); $317.5 million of class A floating-rate notes (//AAA); $62.5 million of class B floating-rate notes; $25 million of class C floating-rate notes; $30 million of class D floating-rate notes; $22.75 million of class E floating-rate notes; $12 million of class F floating-rate notes and $38.5 million of subordinated notes.

The senior tranche is guided to price at Libor plus 154 basis points.

Morgan Stanley & Co. LLC is the placement agent.

Neuberger Berman Fixed Income will manage the CLO.

The CLO will have a two-year non-call period and a 4.2-year reinvestment period.

The transaction is backed primarily by first lien senior secured loans.

Proceeds from the deal will be used to purchase a portfolio of about $500 million of mostly senior secured leveraged loans.

Neuberger Berman previously was in the market with the $410.15 million Neuberger Berman CLO XIX, Ltd./Neuberger Berman CLO XIX, LLC deal on June 16.

The Chicago-based firm, part of Neuberger Berman Group, LLC, placed three CLOs in 2014.

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