Neuberger Berman refinances two 2016 CLOs; HPS Investment refinances CLO second time

By Cristal Cody

Tupelo, Miss., Oct. 18 – Neuberger Berman Investment Advisers LLC refinanced two vintage 2016 CLOs, closing the deals this week.

Neuberger Berman Investment Advisers priced $371 million of notes in a refinancing of the Neuberger Berman CLO XXII, Ltd./Neuberger Berman CLO XXII, LLC offering.

The CLO manager also priced $368 million of notes in a reprint of the Neuberger Berman CLO XXIII, Ltd./Neuberger Berman CLO XXIII, LLC transaction.

Neuberger Berman has refinanced four vintage CLOs year to date.

In other refinancing activity, HPS Investment Partners LLC priced $470.75 million of notes in a second reissue of a 2015 CLO.

Year to date, about $130 billion of vintage CLOs have been refinanced, while refinancing supply is expected to decline to about $100 billion in 2019, according to a BofA Merrill Lynch research report.

Neuberger Berman reprices

Neuberger Berman Investment Advisers priced $371 million of notes due Oct. 17, 2027 in a refinancing of the Neuberger Berman CLO XXII deal, according to a notice of executed supplemental indenture on Wednesday.

The CLO priced the $246 million of class A-1-R senior secured floating-rate notes at Libor plus 113 basis points.

The original $409 million CLO was issued on Sept. 29, 2016. In that offering, the CLO had priced $248 million of class A senior secured floating-rate notes at Libor plus 145 bps.

Neuberger Berman Investment Advisers also priced $368 million of notes due Oct. 17, 2027 in the Neuberger Berman CLO XXIII transaction, according to a market source and a notice of executed supplemental indenture on Wednesday.

The CLO sold $248 million of class A-R senior secured floating-rate notes at Libor plus 105 bps in the senior tranche.

In the original $412 million transaction issued Nov. 29, 2016, the CLO sold $248 million of the class A senior secured floating-rate notes at Libor plus 143 bps.

BofA Merrill Lynch was the refinancing placement agent for both deals.

Proceeds were used to redeem the original notes.

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

HPS prices $470.75 million

HPS Investment Partners priced $470.75 million of notes in a second refinancing of the HPS Loan Management 5-2015 Ltd./HPS Loan Management 5-2015 LLC transaction, according to a market source and a notice of executed second supplemental indenture and amended and restated collateral administration agreement on Thursday.

HPS Loan Management 5-2015 sold priced $295 million of class A1-RR floating-rate notes at Libor plus 115 bps at the top of the capital structure.

Morgan Stanley & Co. LLC was the refinancing placement agent.

The maturity on the refinanced notes was extended to Oct. 15, 2030 from Jan. 29, 2026.

The original CLO, named Highbridge Loan Management 5-2015 Ltd./Highbridge Loan Management 5-2015 LLC, was issued Jan. 22, 2015 and was first refinanced on June 16, 2017.

Proceeds from the second refinancing were used to redeem the outstanding notes.

The management firm is based in New York City.

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