Standard & Poor’s issued presale reports on two collateralized loan obligations this week, putting issuance for the year to date near $50 billion, by the ratings agency’s count, and near the 2005 total of $53 billion.
UBS is prepping the $415 million Neuberger Berman CLO XIII. The deal has a $253.4 million tranche with a preliminary ‘AAA’ rating from S&P being offered at 145 basis points over three-month Libor, which the ratings agency described in a daily update on structured credit Wednesday as “within the range of recent deals.” The tranche has 38.94% subordination.
Neuberger Berman CLO XIII also includes a $53.6 million ‘AA’-rated tranche offered at three-month LIBOR plus 230 basis points; a $24.5 million ‘A’-rated tranche offered at Libor plus 285 basis points; a $15.3 million ‘BBB’-rated tranche offered at Libor plus 450 bps; a $20.1 million ‘BB’-rated tranche offered at Libor plus 510 bps; a $7.4 million ‘B’-rated tranche offered at Libor plus 650 bps; and $40.7 million of unrated subordinated notes.
As of Dec. 10, 2012, the issuer had identified 61% of the portfolio's collateral.
The deal is expected to close on Dec. 20, 2012. Its non-call period ends January 2019 and its reinvestment period ends 2017.
Collateral manager Neuberger Berman Fixed Income LLC currently manages 10 other CLOs and has total assets under management of $3.9 billion, according to S&P.
Goldman Sachs is the placement agent on a $624 million deal for Prudential Investment Management. The Dryden XXV Senior Loan Fund has a $386 million tranche with 38.08% subordination that S&P has assigned a preliminary ‘AAA’ rating. As of Dec. 10, when the presale report was published, it was being offered with a coupon of three-month Libor plus 138 basis points.
The deal was expected to close Dec. 11 and become effective July 28. 2013. It non-callable until Jan. 15, 2015 and can reinvest until Jan. 15, 2017.
As of the date of the presale report, the issuer had identified approximately 71% of the portfolio's collateral.
The deal has two ‘AA’-rated tranches: a $46 million floating rate tranche shopped at Libor plus 225 basis points and a $23 million fixed-rate tranche shopped at 3.67%. There is also $48 million ‘A’-rated class offered at Libor plus 300 basis points; a $29.4 million ‘BBB’-rated class at Libor plus 400 basis points; a $25.2 million ‘BB’-rated class at Libor plus 550 basis points; and $66 million of unrated subordinated notes.
Prudential has 18 CLOs outstanding; the firm managed $23 billion of leveraged finance assets as of June 30, according to S&P.
