By Cristal Cody
Tupelo, Miss., March 27 – NXT Capital LLC subsidiary NXT Capital Investment Advisers LLC priced $406.35 million of notes due April 20, 2029 in a new middle-market collateralized loan obligation offering, a source reported.
NXT Capital CLO 2017-1 LLC sold $226.7 million of class A floating-rate notes at par to yield Libor plus 170 basis points; $39.7 million of class B floating-rate notes at par to yield Libor plus 235 bps; $31.75 million of class C deferrable floating-rate notes at par to yield Libor plus 310 bps; $24.8 million of class D deferrable floating-rate notes at 97.557 and a coupon of Libor plus 410 bps; $26.4 million of class E deferrable floating-rate notes at 95.097 and a coupon of Libor plus 735 bps and $57 million of subordinated notes.
Wells Fargo Securities LLC arranged the deal.
NXT Capital Investment Advisers will manage the CLO.
The CLO has a non-call period that ends April 20, 2019. The reinvestment period ends April 20, 2019.
The deal is backed primarily by a senior secured loans, cash and eligible investments.
Proceeds will be used to purchase a $400 million portfolio of middle-market loans.
NXT Capital is a Chicago-based middle-market lending and financial services firm.
| Issuer: | NXT Capital CLO 2017-1 LLC
|
| Amount: | $406.35 million
|
| Maturity: | April 20, 2029
|
| Securities: | Floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Placement agent: | Wells Fargo Securities LLC
|
| Manager: | NXT Capital Investment Advisers LLC
|
| Call feature: | April 20, 2019
|
| Pricing date: | March 21
|
| Settlement date: | April 13
|
|
|
| Class A notes
|
| Amount: | $226.7 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 170 bps
|
| Price: | Par
|
| Ratings: | S&P: AAA
|
| Fitch: AAA
|
|
|
| Class B notes
|
| Amount: | $39.7 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 235 bps
|
| Price: | Par
|
| Rating: | S&P: AA
|
|
|
| Class C notes
|
| Amount: | $31.75 million
|
| Securities: | Deferrable floating-rate notes
|
| Coupon: | Libor plus 310 bps
|
| Price: | Par
|
| Rating: | S&P: A
|
|
|
| Class D notes
|
| Amount: | $24.8 million
|
| Securities: | Deferrable floating-rate notes
|
| Coupon: | Libor plus 410 bps
|
| Price: | 97.557
|
| Rating: | S&P: BBB-
|
|
|
| Class E notes
|
| Amount: | $26.4 million
|
| Securities: | Deferrable floating-rate notes
|
| Coupon: | Libor plus 735 bps
|
| Price: | 95.097
|
| Rating: | S&P: BB
|
|
|
| Equity
|
| Amount: | $57 million
|
| Securities: | Subordinated notes
|
| Rating: | Non-rated
|
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