NXT Capital Closes Latest CLO

NXT Capital Closes Latest CLO

nxt nfNXT Capital has closed NXT Capital CLO 2014-1, a $357 million CLO. The financing, NXT’s third CLO in three years, is secured almost exclusively by middle-market senior secured loans originated by NXT and has a four-year reinvestment period.

radway nf1“Continued strong interest in NXT’s CLOs confirms expanding investor recognition of our robust direct loan origination platform and proven risk management practices,” said Robert Radway, Chairman and CEO. “Furthermore, our ability to attract first time investors validates a growing appreciation of the valuable diversification that middle market loan assets offer, as well as their consistent performance and attractive risk adjusted returns.”

NXT sold securities rated from AAA through BB and retained all the equity interests.  Pricing on the AAA-rated securities of LIBOR+1.75% represents the best execution for an exclusively middle-market CLO in 2014. Wells Fargo Securities served as the Lead Manager, Structuring Agent and Bookrunner for the transaction and BMO Capital Markets GKST served as Co-Lead Manager.

rudd nf1“With the closing of this latest transaction, NXT has topped $1 billion in CLO issuance,” said Neil Rudd, Chief Financial Officer. “This clearly demonstrates our ability to expand and diversify our funding platform and to access a source of stable and competitively priced financing that helps us compete effectively and enhance returns to our investors.”

NXT Capital provides structured financing to middle-market and growth companies through its Corporate Finance, Equipment Finance, and Real Estate Finance groups, originating transactions directly on a national basis. NXT Capital targets senior financing opportunities up to $150 million with a hold size up to $50 million. NXT Capital is led by former principals of Merrill Lynch Capital and was formed in 2010 by Stone Point Capital and the founding management team. The firm is based in Chicago with offices in New York, Atlanta, Boston, Charlotte, Dallas, Kansas City, Minneapolis/St. Paul, Phoenix, San Francisco and Silicon Valley (www.nxtcapital.com).

© 2014 PEPD • Private Equity’s Leading News Magazine • 5-14-14

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