Neuberger Berman to refinance $437.75 million notes from vintage 2017 CLO offering

By Cristal Cody

Tupelo, Miss., Feb. 20 – Neuberger Berman Investment Advisers LLC plans to price $437.75 million of notes in a refinancing of the Neuberger Berman Loan Advisers CLO 24, Ltd./Neuberger Berman Loan Advisers CLO 24 LLC transaction, according to a notice of proposed first supplemental indenture on Wednesday.

The deal includes $318.5 million of class A-R senior secured floating-rate notes (expected ratings Aaa//AAA), $55 million of class B-R senior secured floating-rate notes (expected rating Aa2), $34.5 million of class C-R senior secured floating-rate notes (expected rating A2) and $29.75 million of class D-R senior secured floating-rate notes (expected rating Baa3).

Wells Fargo Securities, LLC is the refinancing placement agent.

The notes are due April 19, 2030.

The CLO will have an extended non-call period to but excluding the payment date in January 2021. The reinvestment period ends in April 2021.

In the original $511.04 million offering issued May 11, 2017, the CLO sold $318.5 million of class A floating-rate notes at par to yield Libor plus 123 basis points; $47 million of class B-1 floating-rate notes at par to yield Libor plus 160 bps; $8 million of 3.822% class B-2 fixed-rate notes at 99.9811; $34.5 million of class C floating-rate notes at par to yield Libor plus 245 bps; $29.75 million of class D floating-rate notes at par to yield Libor plus 340 bps; $22.25 million of class E floating-rate notes at 98.4657 and a coupon of Libor plus 602 bps and $51.04 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.

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