By Cristal Cody
Tupelo, Miss., Nov. 20 – Neuberger Berman Fixed Income LLC sold $511.25 million of notes due Jan. 15, 2028 in the Neuberger Berman CLO XX, Ltd./Neuberger Berman CLO XX, LLC deal that closed on Friday, according to a market source.
The CLO priced $3 million of class X senior secured floating-rate notes at Libor plus 100 basis points; $317.5 million of class A senior secured floating-rate notes at Libor pus 154 bps; $37.5 million of class B senior secured floating-rate notes at Libor plus 225 bps; $25 million of class B loans at Libor plus 225 bps; $12.5 million of class C senior secured deferrable floating-rate notes at Libor plus 310 bps; $12.5 million of class C loans at Libor plus 310 bps; $30 million of class D senior secured deferrable floating-rate notes at Libor plus 395 bps; $22.75 million of class E mezzanine secured deferrable floating-rate notes at Libor plus 645 bps; $12 million of class F mezzanine secured deferrable floating-rate notes at Libor plus 765 bps and $38.5 million of subordinated notes.
Morgan Stanley & Co. LLC was the placement agent.
Neuberger Berman Fixed Income will manage the CLO.
The CLO has a two-year non-call period and a 4.2-year reinvestment period.
The transaction is backed primarily by first-lien senior secured loans.
Proceeds from the deal will be used to purchase a portfolio of about $500 million of mostly senior secured leveraged loans.
Neuberger Berman previously was in the market with the $410.15 million Neuberger Berman CLO XIX, Ltd./Neuberger Berman CLO XIX, LLC deal on June 16.
The Chicago-based firm, part of Neuberger Berman Group, LLC, placed three CLOs in 2014.
Issuer: | Neuberger Berman CLO XX, Ltd./Neuberger Berman CLO XX, LLC
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Amount: | $511.25 million
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Maturity: | Jan. 15, 2028
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Securities: | Floating-rate and subordinated notes
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Structure: | Cash flow CLO
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Placement agent: | Morgan Stanley & Co. LLC
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Manager: | Neuberger Berman Fixed Income LLC
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Call feature: | Two years
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Pricing date: | Oct. 30
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Settlement date: | Nov. 20
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Distribution: | Rule 144A
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Class X notes
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Amount: | $3 million
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Securities: | Senior secured floating-rate notes
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Coupon: | Libor plus 100 bps
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Ratings: | Moody’s: Aaa
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| Fitch: AAA
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Class A notes
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Amount: | $317.5 million
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Securities: | Senior secured floating-rate notes
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Coupon: | Libor plus 154 bps
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Ratings: | Moody’s: Aaa
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| Fitch: AAA
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Class B notes
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Amount: | $37.5 million
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Securities: | Senior secured floating-rate notes
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Coupon: | Libor plus 225 bps
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Rating: | Moody’s: Aa2
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Class B loans
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Amount: | $25 million
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Securities: | Loans
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Coupon: | Libor plus 225 bps
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Rating: | Moody’s: Aa2
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Class C notes
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Amount: | $12.5 million
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Securities: | Senior secured deferrable floating-rate notes
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Coupon: | Libor plus 310 bps
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Rating: | Moody’s: A2
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Class C loans
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Amount: | $12.5 million
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Securities: | Loans
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Coupon: | Libor plus 310 bps
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Rating: | Moody’s: A2
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Class D notes
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Amount: | $30 million
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Securities: | Senior secured deferrable floating-rate notes
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Coupon: | Libor plus 395 bps
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Rating: | Moody’s: Baa3
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Class E notes
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Amount: | $22.75 million
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Securities: | Mezzanine secured deferrable floating-rate notes
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Coupon: | Libor plus 645 bps
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Rating: | Moody’s: Ba2
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Class F notes
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Amount: | $12 million
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Securities: | Mezzanine secured deferrable floating-rate notes
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Coupon: | Libor plus 765 bps
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Rating: | Moody’s: B3
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Equity
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Amount: | $38.5 million
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Securities: | Subordinated notes
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Ratings: | Non-rated
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