By Cristal Cody
Eureka Springs, Ark., Sept. 13 – Neuberger Berman Investment Advisers LLC priced $409 million of notes due Oct. 17, 2027 in the Neuberger Berman CLO XXII, Ltd./Neuberger Berman CLO XXII, LLC deal, according to a market source.
The CLO sold $248 million of class A senior secured floating-rate notes (Aaa/AAA) at Libor plus 145 basis points; $52 million of class B senior secured floating-rate notes (Aa2) at Libor plus 180 bps; $26 million of class C mezzanine secured deferrable floating-rate notes (A2) at Libor plus 240 bps; $25 million of class D mezzanine secured deferrable floating-rate notes (Baa3) at Libor plus 385 bps; $17 million of class E junior secured deferrable floating-rate notes (Ba3) at Libor plus 675 bps and $41 million of subordinated notes.
BofA Merrill Lynch arranged the transaction.
Neuberger Berman Investment Advisers will manage the CLO.
The CLO has a non-call period that ends Oct. 17, 2018. The reinvestment period ends April 17, 2021.
The deal is backed predominantly by broadly syndicated first-lien senior secured corporate loans.
Neuberger has priced one new CLO and refinanced tranches from two vintage CLOs year to date.
The Chicago-based firm, part of Neuberger Berman Group, LLC, brought two CLO transactions to market in 2015.
| Issuer: | Neuberger Berman CLO XXII, Ltd./Neuberger Berman CLO XXII, LLC
|
| Amount: | $409 million
|
| Maturity: | Oct. 17, 2027
|
| Securities: | Floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Placement agent: | BofA Merrill Lynch
|
| Manager: | Neuberger Berman Investment Advisers LLC
|
| Call feature: | Oct. 17, 2018
|
| Pricing date: | Aug. 25
|
| Settlement date: | Sept. 29
|
|
|
| Class A notes
|
| Amount: | $248 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 145 bps
|
| Ratings: | Moody’s: Aaa
|
| S&P: AAA
|
|
|
| Class B notes
|
| Amount: | $52 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 180 bps
|
| Ratings: | Moody’s: Aa2
|
| S&P: AA
|
|
|
| Class C notes
|
| Amount: | $26 million
|
| Securities: | Mezzanine secured deferrable floating-rate notes
|
| Coupon: | Libor plus 240 bps
|
| Rating: | Moody’s: A2
|
|
|
| Class D notes
|
| Amount: | $25 million
|
| Securities: | Mezzanine secured deferrable floating-rate notes
|
| Coupon: | Libor plus 385 bps
|
| Rating: | Moody’s: Baa3
|
|
|
| Class E notes
|
| Amount: | $17 million
|
| Securities: | Junior secured deferrable floating-rate notes
|
| Coupon: | Libor plus 675 bps
|
| Rating: | Moody’s: Ba3
|
|
|
| Equity
|
| Amount: | $41 million
|
| Securities: | Subordinated notes
|
| Ratings: | Non-rated
|
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