Neuberger Berman offers $361.5 million CLO; deal pipeline slowly fills; primary pace light

By Cristal Cody

Tupelo, Miss., Feb. 18 – The CLO deal calendar is slowly filling as primary action remains light year to date, according to market sources on Thursday.

Neuberger Berman Fixed Income LLC is marketing a $361.5 million CLO transaction.

Also coming up in the pipeline, Crestline Denali Capital, LP plans to price $358.28 million of notes in the Denali Capital CLO XII, Ltd./Denali Capital CLO XII LLC deal via BNP Paribas Securities Corp.

Prudential Investment Management, Inc. has a $507.75 million transaction in the works. The Dryden 42 Senior Loan Fund/Dryden 42 Senior Loan Fund LLC deal is expected to price via BNP Paribas Securities Corp.

In addition, CreekSource LLC is on the calendar with the $300 million Mill Creek CLO II, Ltd./Mill Creek CLO II LLC transaction. Goldman Sachs & Co. is the placement agent.

U.S. CLO managers have priced $826 million in two broadly syndicated CLO deals year to date and $348,006,000 in one middle-market-backed CLO offering, according to Prospect News data.

Neuberger Berman CLO on tap

Neuberger Berman Fixed Income intends to sell $361.5 million of notes due April 20, 2027 in a new CLO deal, according to a market source.

The Neuberger Berman CLO XXI, Ltd./Neuberger Berman CLO XXI, LLC offering includes $3 million of class X floating-rate notes (AAA); $223.2 million of class A floating-rate notes (AAA); $45 million of class B floating-rate notes; $23.4 million of class C deferrable floating-rate notes; $19.8 million of class D deferrable floating-rate notes; $16.2 million of class E deferrable floating-rate notes and $30.9 million of subordinated notes.

Morgan Stanley & Co. LLC is the placement agent.

Neuberger Berman Fixed Income will manage the CLO.

The CLO has a non-call period that ends on April 20, 2018. The reinvestment period is set to end on April 20, 2020.

The transaction is backed primarily by broadly syndicated senior secured loans.

The deal is expected to close on March 29.

Neuberger Berman Fixed Income was in the CLO primary market with two transactions in 2015.

The Chicago-based firm, part of Neuberger Berman Group, LLC, brought three CLO deals in 2014.

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