Neuberger Berman prices $412 million; TPG sells $411 million; LCM refinances 2014 CLO

By Cristal Cody

Eureka Springs, Ark., Nov. 4 – Details emerged on two new deals to price in the U.S. CLO primary market and one refinanced transaction.

Neuberger Berman Investment Advisers LLC brought a $412 million CLO to market in its second new offering of the year.

TPG Institutional Credit Partners, LLC priced a new $411 million CLO in its second deal placement in 2016.

In other activity, LCM Asset Management LLC refinanced $330 million of notes in a vintage 2014 CLO.

More than $14 billion of CLOs have been refinanced year to date, according to market sources and Prospect News data.

Secondary trading was active on Thursday with $368 million of high-grade CBO/CDO/CLO issues and $191.99 million of non-investment-grade securities traded, according to Trace.

On Wednesday, $111.7 million of high-grade securities and $385.4 million of non-high-grade securities were traded.

Neuberger Berman prices

Neuberger Berman Investment Advisers priced $412 million of notes due Oct. 17, 2027 in the Neuberger Berman CLO XXIII, Ltd./Neuberger Berman CLO XXIII, LLC transaction, according to a market source.

The CLO sold $248 million of class A senior secured floating-rate notes (Aaa/AAA) at Libor plus 143 basis points in the AAA-rated tranche.

BofA Merrill Lynch arranged the transaction.

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

Neuberger has priced two new CLOs 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.

TPG sells $411 million

TPG Institutional Credit Partners priced $411 million of notes due Jan. 15, 2029 in the new CLO via BofA Merrill Lynch, a market source said.

TICP CLO VI 2016-2 Ltd. priced $248 million of class A senior secured floating-rate notes at Libor plus 155 bps at the top of the capital stack.

TPG affiliate TICP CLO VI 2016-2 Management, LLC will manage the CLO, which is secured primarily by first-lien senior secured loans.

Proceeds will be used to purchase a portfolio of about $400 million of mostly senior secured leveraged loans.

The Fort Worth, Texas-based private equity firm has priced two CLOs in 2016.

LCM refinances notes

LCM Asset Management refinanced $330 million of notes due Oct. 15, 2026 from the vintage 2014 LCM XVII LP CLO offering, according to a market source.

The CLO sold $255 million of class A-R floating-rate notes at Libor plus 135 bps in the senior tranche.

BofA Merrill Lynch arranged the refinancing.

Proceeds from the offering will be used to redeem the original class A, B-1, B-2 and C notes.

The deal is collateralized primarily by broadly syndicated senior secured loans.

LCM Asset Management has priced three CLO transactions and refinanced one vintage CLO year to date.

The CLO manager brought three CLO deals and refinanced one vintage CLO in 2015.

The New York City-based asset management firm is a subsidiary of Tetragon Financial Group Ltd.

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