By Cristal Cody
Tupelo, Miss., Nov. 20 – Neuberger Berman Fixed Income LLC sold $511.25 million of notes due Jan. 15, 2028 in the Neuberger Berman CLO XX, Ltd./Neuberger Berman CLO XX, LLC deal that closed on Friday, according to a market source.
The CLO priced $3 million of class X senior secured floating-rate notes at Libor plus 100 basis points; $317.5 million of class A senior secured floating-rate notes at Libor pus 154 bps; $37.5 million of class B senior secured floating-rate notes at Libor plus 225 bps; $25 million of class B loans at Libor plus 225 bps; $12.5 million of class C senior secured deferrable floating-rate notes at Libor plus 310 bps; $12.5 million of class C loans at Libor plus 310 bps; $30 million of class D senior secured deferrable floating-rate notes at Libor plus 395 bps; $22.75 million of class E mezzanine secured deferrable floating-rate notes at Libor plus 645 bps; $12 million of class F mezzanine secured deferrable floating-rate notes at Libor plus 765 bps and $38.5 million of subordinated notes.
Morgan Stanley & Co. LLC was the placement agent.
Neuberger Berman Fixed Income will manage the CLO.
The CLO has 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.
| Issuer: | Neuberger Berman CLO XX, Ltd./Neuberger Berman CLO XX, LLC
|
| Amount: | $511.25 million
|
| Maturity: | Jan. 15, 2028
|
| Securities: | Floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Placement agent: | Morgan Stanley & Co. LLC
|
| Manager: | Neuberger Berman Fixed Income LLC
|
| Call feature: | Two years
|
| Pricing date: | Oct. 30
|
| Settlement date: | Nov. 20
|
| Distribution: | Rule 144A
|
|
|
| Class X notes
|
| Amount: | $3 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 100 bps
|
| Ratings: | Moody’s: Aaa
|
| Fitch: AAA
|
|
|
| Class A notes
|
| Amount: | $317.5 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 154 bps
|
| Ratings: | Moody’s: Aaa
|
| Fitch: AAA
|
|
|
| Class B notes
|
| Amount: | $37.5 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 225 bps
|
| Rating: | Moody’s: Aa2
|
|
|
| Class B loans
|
| Amount: | $25 million
|
| Securities: | Loans
|
| Coupon: | Libor plus 225 bps
|
| Rating: | Moody’s: Aa2
|
|
|
| Class C notes
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| Amount: | $12.5 million
|
| Securities: | Senior secured deferrable floating-rate notes
|
| Coupon: | Libor plus 310 bps
|
| Rating: | Moody’s: A2
|
|
|
| Class C loans
|
| Amount: | $12.5 million
|
| Securities: | Loans
|
| Coupon: | Libor plus 310 bps
|
| Rating: | Moody’s: A2
|
|
|
| Class D notes
|
| Amount: | $30 million
|
| Securities: | Senior secured deferrable floating-rate notes
|
| Coupon: | Libor plus 395 bps
|
| Rating: | Moody’s: Baa3
|
|
|
| Class E notes
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| Amount: | $22.75 million
|
| Securities: | Mezzanine secured deferrable floating-rate notes
|
| Coupon: | Libor plus 645 bps
|
| Rating: | Moody’s: Ba2
|
|
|
| Class F notes
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| Amount: | $12 million
|
| Securities: | Mezzanine secured deferrable floating-rate notes
|
| Coupon: | Libor plus 765 bps
|
| Rating: | Moody’s: B3
|
|
|
| Equity
|
| Amount: | $38.5 million
|
| Securities: | Subordinated notes
|
| Ratings: | Non-rated
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