Neuberger Berman plans $368 million second refinancing of vintage 2013 CLO XIV notes

By Cristal Cody

Tupelo, Miss., Jan. 27 – Neuberger Berman Investment Advisers LLC plans to price $368 million of notes due Jan. 28, 2030 in a second refinancing of the vintage 2013 Neuberger Berman CLO XIV, Ltd./Neuberger Berman CLO XIV LLC transaction, according to a market source and a notice of proposed supplemental indenture on Friday.

The offering includes $252.8 million of class A-R2 floating-rate notes (expected ratings: AAA/AAA); $51.4 million of class B-R2 floating-rate notes (expected rating: AA); $24.25 million of class C-R2 floating-rate notes (expected rating: A); $23.75 million of class D-R2 floating-rate notes (BBB-) and $15. 8 million of class E-R2 floating-rate notes (expected rating: BB-).

Citigroup Global Markets Inc. is the refinancing agent.

Neuberger Berman Investment Advisers is the CLO manager.

In the original $413.19 million transaction issued on May 10, 2013, the CLO sold $1 million of class X senior secured floating-rate notes at Libor plus 90 basis points; $217 million of class A-1 senior secured floating-rate notes at Libor plus 113 bps; $35 million of class A-2 senior secured floating-rate notes (Aaa) at Libor plus 113 bps; $30 million of class B-1 senior secured floating-rate notes at Libor plus 165 bps; $21 million of 3.146% class B-2 senior secured fixed-rate notes; $31 million of class C secured deferrable floating-rate notes at Libor plus 270 bps; $20 million of class D secured deferrable floating-rate notes at Libor plus 370 bps; $17 million of class E secured deferrable floating-rate notes at Libor plus 460 bps; and $41.19 million of subordinated notes.

The CLO was refinanced for the first time on April 28, 2017.

The deal is backed predominantly by broadly syndicated first-lien senior secured corporate loans.

Proceeds will be used to redeem the outstanding notes.

The Chicago-based firm is part of Neuberger Berman Group, LLC.

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