Neuberger Berman prices $465.25 million CLO reprint; high-grade secondary volume strong

By Cristal Cody

Tupelo, Miss., Nov. 14 – Neuberger Berman Investment Advisers LLC closed Wednesday on a $465.25 million second refinancing of a 2014 vintage CLO deal.

The CLO manager priced the senior tranche at Libor plus 115 basis points, tighter than where the class A-1 notes originally priced at Libor plus 148 bps in 2014 and improved from where the notes were refinanced in 2016 at Libor plus 143 bps.

Neuberger Berman has refinanced five vintage CLOs in 2018.

Year to date, CLO managers have repriced nearly $140 billion of vintage CLOs, according to market sources. About $170 billion of refinancing volume is expected by market analysts for the year.

Elsewhere, securitized secondary trading was heavy on Tuesday in investment-grade CBO/CDO/CLO securities. During the session, $420.75 million of high-grade issues traded, as well as $112.43 million of non-high-grade CBO/CDO/CLO securities, according to Trace data.

In its deal, Neuberger Berman Investment Advisers priced $465.25 million of notes in the Neuberger Berman CLO XVIII, Ltd./Neuberger Berman CLO XVIII, LLC transaction, according to a market source.

The CLO priced the $305 million of class A-1a-R2 senior secured floating-rate notes at Libor plus 115 bps at the top of the capital structure.

Barclays was the refinancing agent.

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