Benefit Street Partners taps CLO market; Neuberger Berman plans second CLO offering of year

By Cristal Cody

Prospect News, Oct. 29 – Benefit Street Partners LLC tapped the CLO primary market with a new $512 million deal, which included a tranche of fixed-rate notes.

October pricing action picked up after a slow August and September with more than $5 billion of CLOs priced over the month, according to market sources.

So far this year, CLO managers have priced about $96 billion of notes in broadly syndicated CLO deals, middle-market CLO transactions and refinancing transactions, according to data compiled by Prospect News.

Coming up in the deal pipeline, Neuberger Berman Fixed Income LLC is marketing a $511.25 million CLO offering with the senior tranche guided to price at Libor plus 154 basis points.

Benefit Street prices

Benefit Street Partners priced $512 million of notes due Nov. 15, 2027 in the firm’s third new CLO transaction of the year, according to a market source.

Benefit Street Partners CLO VIII Ltd./Benefit Street Partners CLO VIII LLC sold $247.3 million of class A-1A floating-rate notes at Libor plus 160 basis points, $43 million of class A-1B floating-rate notes at Libor plus 145 bps, $20 million of 3.3% class A-1C fixed-rate notes and $62.4 million of class A-2 floating-rate notes at Libor plus 225 bps at the top of the capital structure.

Citigroup Global Markets Inc. arranged the offering.

Benefit Street Partners has priced three new CLO deals and refinanced one vintage CLO transaction this year to date.

The New York City-based credit investment arm of Providence Equity Partners LLC brought two CLO transactions in 2014.

Neuberger Berman ahead

Neuberger Berman Fixed Income is in the CLO pipeline with $511.25 million of notes due Jan. 15, 2028, 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.

Morgan Stanley & Co. LLC is the placement agent.

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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