By Cristal Cody
Eureka Springs, Ark., Nov. 16 – Neuberger Berman Investment Advisers LLC refinanced $459.5 million of notes due Nov. 14, 2027 in the Neuberger Berman CLO XVIII, Ltd./Neuberger Berman CLO XVIII, LLC transaction, according to a market source and a notice of executed second supplemental indenture.
The CLO sold $307.5 million of class A-1-R senior secured floating-rate notes at Libor plus 143 basis points; $65 million of class A-2-R senior secured floating-rate notes at Libor plus 185 bps; $37 million of class B-R senior secured deferrable floating-rate notes at Libor plus 255 bps; $30 million of class C-R senior secured deferrable floating-rate notes at Libor plus 425 bps and $20 million of class D-R mezzanine secured deferrable floating-rate notes at Libor plus 775 bps.
Barclays was the refinancing agent.
Neuberger Berman Investment Advisers will continue to manage the CLO.
The maturity on the refinanced notes was extended by two years. In addition, the reinvestment and non-call periods were extended by two years. The new non-call period ends Nov. 14, 2018. The reinvestment period now ends Nov. 14, 2020.
The deal is backed predominantly by broadly syndicated first-lien senior secured corporate loans and eligible investments.
Proceeds were used to redeem the original notes on Monday.
Neuberger has priced two new CLOs and refinanced tranches from three 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 XVIII, Ltd./Neuberger Berman CLO XVIII, LLC
|
| Amount: | $459.5 million
|
| Maturity: | Nov. 14, 2027
|
| Securities: | Global floating-rate notes
|
| Structure: | Cash flow CLO
|
| Refinancing agent: | Barclays
|
| Manager: | Neuberger Berman Investment Advisers LLC
|
| Call feature: | Nov. 14, 2018
|
| Pricing date: | Nov. 8
|
| Settlement date: | Nov. 14
|
| Distribution: | Rule 144A, Regulation S
|
|
|
| Class A-1-R notes
|
| Amount: | $307.5 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 143 bps
|
| Ratings: | Moody’s: Aaa
|
| S&P: AAA
|
|
|
| Class A-2-R notes
|
| Amount: | $65 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 185 bps
|
| Rating: | S&P: AA
|
|
|
| Class B-R notes
|
| Amount: | $37 million
|
| Securities: | Senior secured deferrable floating-rate notes
|
| Coupon: | Libor plus 255 bps
|
| Rating: | S&P: A
|
|
|
| Class C-R notes
|
| Amount: | $30 million
|
| Securities: | Senior secured deferrable floating-rate notes
|
| Coupon: | Libor plus 425 bps
|
| Rating: | S&P: BBB
|
|
|
| Class D-R notes
|
| Amount: | $20 million
|
| Securities: | Mezzanine secured deferrable floating-rate notes
|
| Coupon: | Libor plus 775 bps
|
| Rating: | S&P: BB
|
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