By Cristal Cody
Eureka Springs, Ark., July 13 – Neuberger Berman Fixed Income LLC refinanced $355.25 million of notes due April 15, 2026 in four tranches from the vintage 2014 Neuberger Berman CLO XVI, Ltd./Neuberger Berman CLO XVI, LLC deal, according to a market source.
Neuberger Berman CLO XVI priced $330.5 million of class A-1-R senior secured floating-rate notes at Libor plus 145 basis points.
The class A-1 notes originally were sold in a $275.5 million tranche at Libor plus 147 bps.
The CLO sold $5 million of 2.32% class A-2-R senior secured fixed-rate notes. The class A-2 notes originally priced in a $60 million fixed-rate tranche with a coupon of 3.51%.
The CLO priced $18.75 million of class B-2-R senior secured floating-rate notes at Libor plus 217 bps. The class B-2 notes were originally sold with a fixed-rate coupon of 4.31%.
Neuberger Berman also refinanced the $1 million tranche of class C-2-R mezzanine secured deferrable floating-rate notes at Libor plus 275 bps.
The class C-2 notes originally were sold with a fixed-rate coupon of 5.36%.
BofA Merrill Lynch was the refinancing agent.
Neuberger Berman originally sold $572 million of notes in 11 tranches in the deal on Feb. 11, 2014. The remaining classes of notes were not refinanced.
The transaction is backed primarily by broadly syndicated senior secured loans.
Proceeds from the refinancing will be used to redeem the original notes.
Neuberger also refinanced $183 million class A-2R-R floating-rate notes at par to yield Libor plus 130 bps on June 30 in the Neuberger Berman CLO XII, Ltd./Neuberger Berman CLO XII, LLC transaction.
The CLO manager has priced one new CLO transaction in 2016.
The Chicago-based firm, part of Neuberger Berman Group, LLC, brought two transactions to market in 2015.
| Issuer: | Neuberger Berman CLO XVI, Ltd./Neuberger Berman CLO XVI, LLC
|
| Amount: | $355.25 million
|
| Maturity: | April 15, 2026
|
| Securities: | Fixed-rate, floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Refinancing agent: | BofA Merrill Lynch
|
| Manager: | Neuberger Berman Fixed Income LLC
|
| Pricing date: | July 8
|
| Settlement date: | July 15
|
|
|
| Class A-1-R notes
|
| Amount: | $330.5 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 145 bps
|
| Rating: | S&P: AAA
|
|
|
| Class A-2-R notes
|
| Amount: | $5 million
|
| Securities: | Senior secured fixed-rate notes
|
| Coupon: | 2.32%
|
| Rating: | S&P: AAA
|
|
|
| Class B-2-R notes
|
| Amount: | $18.75 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 217 bps
|
| Rating: | S&P: AA
|
|
|
| Class C-2-R notes
|
| Amount: | $1 million
|
| Securities: | Mezzanine secured deferrable floating-rate notes
|
| Coupon: | Libor plus 275 bps
|
| Rating: | S&P: A
|
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