By Cristal Cody
Tupelo, Miss., Feb. 24 – Neuberger Berman Investment Advisers LLC sold $503.2 million of notes in a second refinancing of the vintage 2014 Neuberger Berman CLO XVII, Ltd./Neuberger Berman CLO XVII LLC transaction, according to a notice of revised proposed second supplemental indenture on Friday.
The CLO priced $336.4 million of class A-R2 senior secured floating-rate notes at Libor plus 103 basis points and $69.3 million of class B-R2 senior secured floating-rate notes at Libor plus 150 bps.
Neuberger Berman XVII also sold $42.8 million of class C-R2 mezzanine secured deferrable floating-rate notes at Libor plus 200 bps, $16 million of class D-R2A mezzanine secured deferrable floating-rate notes at Libor plus 280 bps, $13.5 million of 4.23% class D-R2B mezzanine secured deferrable fixed-rate notes and $25.2 million of class E-R2 junior secured deferrable floating-rate notes at Libor plus 720 bps.
J.P. Morgan Securities LLC was the refinancing agent.
The notes are due April 22, 2029.
The refinanced CLO notes have an extended non-call period to but excluding the payment date in January 2021. The reinvestment period ends in April 2022.
Neuberger Berman originally issued the CLO on July 16, 2014. The CLO had priced $4 million of class X senior secured floating-rate notes at par to yield Libor plus 100 bps; $338.25 million of class A senior secured floating-rate notes at par to yield Libor plus 147 bps; $74.25 million of class B senior secured floating-rate notes at par to yield Libor plus 210 bps; $41.25 million of class C deferrable floating-rate notes at 97.15 and a coupon of Libor plus 276 bps; $28,875,000 of class D deferrable floating-rate notes at 94.77 and a coupon of Libor plus 355 bps; $23,125,000 of class E-1 deferrable floating-rate notes at 89.91 and a coupon of Libor plus 475 bps and $3 million of class E-2 deferrable floating-rate notes at 94.64 and a coupon of Libor plus 550 bps.
In the $568.7 million first refinancing on May 4, 2017, the CLO sold $8.5 million of class X-R senior secured floating-rate notes at Libor plus 100 bps; $336.4 million of class A-R senior secured floating-rate notes at Libor plus 118 bps; $54.3 million of class B-1-R senior secured floating-rate notes at Libor plus 165 bps; $15 million of 3.88% class B-2-R senior secured fixed-rate notes; $42.8 million of class C-R mezzanine secured deferrable floating-rate notes at Libor plus 245 bps; $29.5 million of class D-R mezzanine secured deferrable floating-rate notes at Libor plus 355 bps; $25.2 million of class E-R junior secured deferrable floating-rate notes at Libor plus 630 bps and $57 million of subordinated notes.
Proceeds will be used to redeem the outstanding notes.
The CLO is backed predominantly by broadly syndicated first-lien senior secured corporate loans.
The Chicago-based firm is part of Neuberger Berman Group, LLC.
| Issuer: | Neuberger Berman CLO XVII, Ltd./Neuberger Berman CLO XVII LLC
|
| Amount: | $503.2 million refinancing
|
| Maturity: | April 22, 2029
|
| Securities: | Fixed- and floating-rate notes
|
| Structure: | Cash flow CLO
|
| Refinancing agent: | J.P. Morgan Securities LLC
|
| Manager: | Neuberger Berman Investment Advisers LLC
|
| Call feature: | To but excluding payment date in January 2021
|
| Settlement date: | Feb. 28
|
| Distribution: | Rule 144A and Regulation S
|
|
|
| Class A-R2 notes
|
| Amount: | $336.4 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 103 bps
|
| Ratings: | Moody’s: Aaa expected
|
| S&P: AAA
|
|
|
| Class B-R2 notes
|
| Amount: | $69.3 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 150 bps
|
| Rating: | S&P: AA
|
|
|
| Class C-R2 notes
|
| Amount: | $42.8 million
|
| Securities: | Mezzanine secured deferrable floating-rate notes
|
| Coupon: | Libor plus 200 bps
|
| Rating: | S&P: A
|
|
|
| Class D-R2A notes
|
| Amount: | $16 million
|
| Securities: | Mezzanine secured deferrable floating-rate notes
|
| Coupon: | Libor plus 280 bps
|
| Rating: | S&P: BBB
|
|
|
| Class D-R2B notes
|
| Amount: | $13.5 million
|
| Securities: | Mezzanine secured deferrable fixed-rate notes
|
| Coupon: | 4.23%
|
| Rating: | S&P: BBB
|
|
|
| Class E-R2 notes
|
| Amount: | $25.2 million
|
| Securities: | Junior secured deferrable floating-rate notes
|
| Coupon: | Libor plus 720 bps
|
| Rating: | S&P: BB-
|
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