Moody's Assigns Ratings to Neuberger Berman Loan Advisers CLO 60, Ltd. Notes

Strategic Insights -

Moody's Investors Service has assigned ratings to two classes of notes issued and one class of loans to be incurred by Neuberger Berman Loan Advisers CLO 60, Ltd. The Rated Debt consists of U.S.$100,000,000 Class A-1 Senior Secured Floating Rate Notes due 2037, U.S.$220,000,000 Class A-1L-N Senior Secured Floating Rate Notes due 2037, and U.S.$220,000,000 Class A-1L Loans maturing 2037. The ratings are based on Moody's methodology, considering risks associated with the CLO's portfolio and structure.

Key Takeaways:

  • The Rated Debt is collateralized primarily by broadly syndicated senior secured corporate loans, with at least 90.0% of the portfolio consisting of first lien senior secured loans and up to 10.0% consisting of second lien loans and unsecured loans.
  • The portfolio is approximately 90% ramped as of the closing date, with Neuberger Berman Loan Advisers IV LLC directing the selection, acquisition, and disposition of assets on behalf of the Issuer.
  • The transaction incorporates interest and par coverage tests, diverting interest and principal proceeds to pay down debt in order of seniority.
  • The Manager may engage in trading activity, including discretionary trading, during the transaction's five-year reinvestment period, and may reinvest unscheduled principal payments and proceeds from sales of credit risk assets.
  • The Model assumes a Par amount of $500,000,000, Diversity Score of 65, Weighted Average Rating Factor (WARF) of 2925, Weighted Average Spread (WAS) of 3.00%, Weighted Average Coupon (WAC) of 6.0%, Weighted Average Recovery Rate (WARR) of 45.0%, and Weighted Average Life (WAL) of 8.17 years.
  • The principal methodology used in these ratings was "Moody's Global Approach to Rating Collateralized Loan Obligations" published in May 2024.

Statistics:

  • The Rated Debt consists of U.S.$100,000,000 Class A-1 Senior Secured Floating Rate Notes due 2037 and U.S.$220,000,000 Class A-1L-N Senior Secured Floating Rate Notes due 2037.
  • The portfolio is approximately 90% ramped as of the closing date.
  • The Manager may engage in trading activity, including discretionary trading, during the transaction's five-year reinvestment period.
  • The Model assumes a Par amount of $500,000,000, Diversity Score of 65, Weighted Average Rating Factor (WARF) of 2925, Weighted Average Spread (WAS) of 3.00%, Weighted Average Coupon (WAC) of 6.0%, Weighted Average Recovery Rate (WARR) of 45.0%, and Weighted Average Life (WAL) of 8.17 years.

Sources:

  • "Moody's Global Approach to Rating Collateralized Loan Obligations" published in May 2024, available at https://ratings.moodys.com/rmc-documents/420962.
  • "Moody's Ratings" methodology, available at https://ratings.moodys.com.