By Cristal Cody
Eureka Springs, Ark., Feb. 29 – Neuberger Berman Fixed Income LLC sold $361.5 million of notes due April 20, 2027 in a new collateralized loan obligation deal, according to a market source.
Neuberger Berman CLO XXI, Ltd./Neuberger Berman CLO XXI, LLC priced $3 million of class X senior secured floating-rate notes at Libor plus 100 basis points and $223.2 million of class A senior secured floating-rate notes at Libor plus 155 bps at the top of the capital structure.
The CLO sold $20 million of class B-1 senior secured floating-rate notes at Libor plus 240 bps and $25 million of 3.65% class B-2 senior secured fixed-rate notes.
Neuberger Berman CLO XXI also priced $15.5 million of class C-1 mezzanine secured deferrable floating-rate notes at Libor plus 330 bps; $7.9 million of 5.21% class C-2 mezzanine secured deferrable fixed-rate notes; $19.8 million of class D mezzanine secured deferrable floating-rate notes at Libor plus 495 bps; $16.2 million of class E junior secured deferrable floating-rate notes at Libor plus 700 bps and $30.9 million of subordinated notes.
Morgan Stanley & Co. LLC was the placement agent.
Neuberger Berman Fixed Income will manage the CLO.
The CLO has a non-call period that ends on April 20, 2018 and a reinvestment period that ends on April 20, 2020.
The transaction is backed primarily by broadly syndicated senior secured loans.
Neuberger Berman Fixed Income was in the CLO primary market with two transactions in 2015.
The Chicago-based firm is part of Neuberger Berman Group, LLC.
| Issuer: | Neuberger Berman CLO XXI, Ltd./Neuberger Berman CLO XXI, LLC
|
| Amount: | $361.5 million
|
| Maturity: | April 20, 2027
|
| Securities: | Fixed-rate, floating-rate and subordinated notes
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| Structure: | Cash flow CLO
|
| Placement agent: | Morgan Stanley & Co. LLC
|
| Manager: | Neuberger Berman Fixed Income LLC
|
| Call feature: | April 20, 2018
|
| Pricing date: | Feb. 24
|
| Settlement date: | March 29
|
|
|
| Class X notes
|
| Amount: | $3 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 100 bps
|
| Ratings: | Moody’s: Aaa
|
| Standard & Poor’s: AAA
|
|
|
| Class A notes
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| Amount: | $223.2 million
|
| Securities: | Senior secured floating-rate notes
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| Coupon: | Libor plus 155 bps
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| Ratings: | Moody’s: Aaa
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| Standard & Poor’s: AAA
|
|
|
| Class B-1 notes
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| Amount: | $20 million
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| Securities: | Senior secured floating-rate notes
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| Coupon: | Libor plus 240 bps
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| Rating: | Moody’s: Aa2
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|
|
| Class B-2 notes
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| Amount: | $25 million
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| Securities: | Senior secured fixed-rate notes
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| Coupon: | 3.65%
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| Rating: | Moody’s: Aa2
|
|
|
| Class C-1 notes
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| Amount: | $15.5 million
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| Securities: | Mezzanine secured deferrable floating-rate notes
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| Coupon: | Libor plus 330 bps
|
| Rating: | Moody’s: A2
|
|
|
| Class C-2 notes
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| Amount: | $7.9 million
|
| Securities: | Mezzanine secured deferrable fixed-rate notes
|
| Coupon: | 5.21%
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| Rating: | Moody’s: A2
|
|
|
| Class D notes
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| Amount: | $19.8 million
|
| Securities: | Mezzanine secured deferrable floating-rate notes
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| Coupon: | Libor plus 495 bps
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| Rating: | Moody’s: Baa3
|
|
|
| Class E notes
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| Amount: | $16.2 million
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| Securities: | Junior secured deferrable floating-rate notes
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| Coupon: | Libor plus 700 bps
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| Rating: | Moody’s: Ba2
|
|
|
| Equity
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| Amount: | $30.9 million
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| Securities: | Subordinated notes
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| Ratings: | Non-rated
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