Neuberger Berman markets $409 million notes due 2027 in CLO offering

By Cristal Cody

Eureka Springs, Ark., Aug. 17 – Neuberger Berman Investment Advisers LLC intends to price $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 transaction includes $248 million of class A senior secured floating-rate notes (Aaa/AAA); $52 million of class B senior secured floating-rate notes (Aa2); $26 million of class C mezzanine secured deferrable floating-rate notes (A2); $25 million of class D mezzanine secured deferrable floating-rate notes (Baa3); $17 million of class E junior secured deferrable floating-rate notes (Ba3) and $41 million of subordinated notes.

BofA Merrill Lynch is the placement agent.

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.

The transaction is expected to close on Sept. 29.

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.

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