By Cristal Cody
Tupelo, Miss., April 3 – Neuberger Berman Loan Advisers LLC sold $370 million of notes due April 20, 2027 in a refinancing of the vintage 2016 Neuberger Berman Loan Advisors CLO XXI, Ltd./Neuberger Berman Loan Advisors CLO XXI, LLC transaction, according to market sources and a notice to CLO noteholders.
The CLO priced $247 million of class A-1-R senior secured floating-rate notes at Libor plus 75 basis points; $13 million of class A-2-R senior secured floating-rate notes at Libor plus 95 bps; $44 million of class B-R senior secured floating-rate notes at Libor plus 118 bps; $26 million of class C-R senior secured deferrable floating-rate notes at Libor plus 160 bps; $22 million of class D-R senior secured deferrable floating-rate notes at Libor plus 240 bps and $18 million of class E-R mezzanine senior secured deferrable floating-rate notes at Libor plus 520 bps.
Morgan Stanley & Co. LLC arranged the transaction.
Neuberger Berman Investment Advisers will continue to manage the CLO.
The refinanced CLO has an extended one-year non-call period.
The original $361.5 million CLO priced on Feb. 24, 2016. The CLO sold $3 million of class X senior secured floating-rate notes at Libor plus 100 bps; $223.2 million of class A senior secured floating-rate notes at Libor plus 155 bps; $20 million of class B-1 senior secured floating-rate notes at Libor plus 240 bps and $25 million of 3.65% class B-2 senior secured fixed-rate notes.
Neuberger Berman CLO XXI also had priced $15.5 million of class C-1 mezzanine secured deferrable floating-rate notes at Libor plus 330 bps; $7.9 million of 5.21% class C-2 mezzanine secured deferrable fixed-rate notes; $19.8 million of class D mezzanine secured deferrable floating-rate notes at Libor plus 495 bps; $16.2 million of class E junior secured deferrable floating-rate notes at Libor plus 700 bps and $30.9 million of subordinated notes.
Proceeds will be used to redeem the original floating-rate and fixed-rate notes. The subordinated notes will remain outstanding.
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 XXI, Ltd./Neuberger Berman CLO XXI, LLC
|
| Amount: | $370 million refinancing
|
| Maturity: | April 20, 2027
|
| Securities: | Floating-rate notes
|
| Structure: | Cash flow CLO
|
| Refinancing agent: | Morgan Stanley & Co. LLC
|
| Manager: | Neuberger Berman Fixed Income LLC
|
| Call feature: | April 2019
|
| Settlement date: | April 20
|
| Distribution: | Rule 144A, Regulation S
|
|
|
| Class A-1-R notes
|
| Amount: | $247 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 75 bps
|
| Ratings: | Moody’s: Aaa
|
| S&P: AAA
|
|
|
| Class A-2-R notes
|
| Amount: | $13 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 95 bps
|
| Ratings: | Moody’s: Aaa
|
| S&P: Non-rated
|
|
|
| Class B-R notes
|
| Amount: | $44 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 118 bps
|
| Rating: | S&P: AA
|
|
|
| Class C-R notes
|
| Amount: | $26 million
|
| Securities: | Senior secured deferrable floating-rate notes
|
| Coupon: | Libor plus 160 bps
|
| Rating: | S&P: A
|
|
|
| Class D-R notes
|
| Amount: | $22 million
|
| Securities: | Senior secured deferrable floating-rate notes
|
| Coupon: | Libor plus 240 bps
|
| Rating: | S&P: BBB-
|
|
|
| Class E-R notes
|
| Amount: | $18 million
|
| Securities: | Mezzanine secured deferrable floating-rate notes
|
| Coupon: | Libor plus 520 bps
|
| Rating: | S&P: BB-
|
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