Neuberger Berman prices $465.25 million CLO reprint; high-grade secondary volume strong

By Cristal Cody

Tupelo, Miss., Nov. 14 – Neuberger Berman Investment Advisers LLC closed Wednesday on a $465.25 million second refinancing of a 2014 vintage CLO deal.

The CLO manager priced the senior tranche at Libor plus 115 basis points, tighter than where the class A-1 notes originally priced at Libor plus 148 bps in 2014 and improved from where the notes were refinanced in 2016 at Libor plus 143 bps.

Neuberger Berman has refinanced five vintage CLOs in 2018.

Year to date, CLO managers have repriced nearly $140 billion of vintage CLOs, according to market sources. About $170 billion of refinancing volume is expected by market analysts for the year.

Elsewhere, securitized secondary trading was heavy on Tuesday in investment-grade CBO/CDO/CLO securities. During the session, $420.75 million of high-grade issues traded, as well as $112.43 million of non-high-grade CBO/CDO/CLO securities, according to Trace data.

The high-grade securities traded with an average price of 99.50, while the non-investment-grade issues had an average trading price of 66.30.

Neuberger reprices 2014 CLO

Neuberger Berman Investment Advisers priced $465.25 million of notes in the Neuberger Berman CLO XVIII, Ltd./Neuberger Berman CLO XVIII, LLC transaction, according to a market source.

The CLO priced the $305 million of class A-1a-R2 senior secured floating-rate notes at Libor plus 115 bps at the top of the capital structure.

Barclays was the refinancing agent.

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 the class A-1 senior secured floating-rate notes at Libor plus 148 bps.

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 the class A-1-R senior secured floating-rate notes at Libor plus 143 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.

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