By Cristal Cody
Tupelo, Miss., Nov. 14 – Neuberger Berman Investment Advisers LLC priced $465.25 million of notes in a second refinancing of the 2014 vintage Neuberger Berman CLO XVIII, Ltd./Neuberger Berman CLO XVIII, LLC transaction that closed on Wednesday, according to a market source.
The CLO sold $6 million of class X-R2 floating-rate notes at Libor plus 90 basis points; $305 million of class A-1a-R2 senior secured floating-rate notes at Libor plus 115 bps; $20 million of class A-1b-R2 senior secured floating-rate notes at Libor plus 140 bps; $60 million of class A-2-R2 senior secured deferrable floating-rate notes at Libor plus 170 bps; $30 million of B-R2 floating-rate notes at Libor plus 215 bps; $25 million of class C-R2 senior secured deferrable floating-rate notes at Libor plus 300 bps and $19.25 million of class D-R2 mezzanine secured deferrable floating-rate notes at Libor plus 592 bps.
Barclays was the refinancing agent.
Neuberger Berman Investment Advisers will continue to manage the CLO.
The maturity on the notes was extended to Oct. 21, 2030 from the Nov. 14, 2027 first refinanced maturity. Also, the reset CLO has a two-year non-call period and a five-year reinvestment period.
The CLO originally was issued as a $512.85 million deal on Dec. 15, 2014. In the original issuance, the CLO priced $307.5 million of class A-1 senior secured floating-rate notes at Libor plus 148 bps; $65 million of class A-2 senior secured floating-rate notes at Libor plus 253 bps; $37 million of class B senior secured deferrable floating-rate notes at Libor plus 315 bps; $30 million of class C senior secured deferrable floating-rate notes at Libor plus 375 bps; $20 million of class D mezzanine secured deferrable floating-rate notes at Libor plus 525 bps and $53.35 million of subordinated notes.
Neuberger Berman CLO XVIII was refinanced the first time in a $459.5 million offering on Nov. 14, 2016. In the refinancing, the CLO placed $307.5 million of class A-1-R senior secured floating-rate notes at Libor plus 143 bps; $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.
Proceeds were used to redeem the existing notes.
The CLO is backed predominantly by broadly syndicated first-lien senior secured corporate loans and eligible investments.
The Chicago-based firm is part of Neuberger Berman Group, LLC.
| Issuer: | Neuberger Berman CLO XVIII, Ltd./Neuberger Berman CLO XVIII, LLC
|
| Amount: | $465.25 million refinancing
|
| Maturity: | Oct. 21, 2030
|
| Securities: | Floating-rate notes
|
| Structure: | Cash flow CLO
|
| Refinancing agent: | Barclays
|
| Manager: | Neuberger Berman Investment Advisers LLC
|
| Call feature: | Two years
|
| Pricing date: | Nov. 2
|
| Settlement date: | Nov. 14
|
| Distribution: | Rule 144A, Regulation S
|
|
|
| Class X-R2 notes
|
| Amount: | $6 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 90 bps
|
| Ratings: | S&P: AAA
|
| Fitch: AAA
|
|
|
| Class A-1a-R2 notes
|
| Amount: | $305 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 115 bps
|
| Ratings: | S&P: AAA
|
| Fitch: AAA
|
|
|
| Class A-1b-R2 notes
|
| Amount: | $20 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 140 bps
|
| Ratings: | S&P: Non-rated
|
| Fitch: AAA
|
|
|
| Class A-2-R2 notes
|
| Amount: | $60 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 170 bps
|
| Rating: | S&P: AA
|
|
|
| Class B-R2 notes
|
| Amount: | $30 million
|
| Securities: | Senior secured deferrable floating-rate notes
|
| Coupon: | Libor plus 215 bps
|
| Rating: | S&P: A
|
|
|
| Class C-R2 notes
|
| Amount: | $25 million
|
| Securities: | Senior secured deferrable floating-rate notes
|
| Coupon: | Libor plus 300 bps
|
| Rating: | S&P: BBB-
|
|
|
| Class D-R2 notes
|
| Amount: | $19.25 million
|
| Securities: | Mezzanine secured deferrable floating-rate notes
|
| Coupon: | Libor plus 592 bps
|
| Rating: | S&P: BB-
|
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