By Cristal Cody
Tupelo, Miss., July 25– NXT Capital LLC subsidiary NXT Capital Investment Advisers LLC priced $271 million of notes due April 23, 2026 in a refinancing of a 2014 middle-market collateralized loan obligation offering, according to a market source and a notice of executed supplemental indenture No. 1 on Tuesday.
NXT Capital CLO 2014-1 LLC sold $188.75 million of class A-R senior secured floating-rate notes at Libor plus 140 basis points; $24 million of class B-1-R senior secured floating-rate notes at Libor plus 190 bps; $5 million of 3.544% class B-2-R senior secured fixed-rate notes; $37.25 million of class C-R secured deferrable floating-rate notes at Libor plus 275 bps and $16 million of class D-R secured deferrable floating-rate notes at Libor plus 375 bps.
Wells Fargo Securities LLC arranged the deal.
NXT Capital CLO 2014-1, LLC is the CLO manager.
NXT Capital originally issued $357.45 million of the notes in May 2014. NXT Capital sold $188.75 million of the class A notes at Libor plus 175 bps, $24 million of class B-1 notes at Libor plus 250 bps, $5 million of class B-2 notes at 4.756%, $37.25 million of class C notes at Libor plus 350 bps, $16 million of class D notes at Libor plus 400 bps, $32 million of class E notes at Libor plus 550 bps and $54.45 million of subordinated notes with a residual coupon.
Proceeds from the refinancing were used to redeem the original class A, B-1, B-2, C and D notes. The class E notes will remain outstanding.
The deal is backed primarily by senior secured small and medium enterprise loans.
NXT Capital is a Chicago-based middle-market lending and financial services firm.
| Issuer: | NXT Capital CLO 2014-1 LLC
|
| Amount: | $271 million refinancing
|
| Maturity: | April 23, 2026
|
| Securities: | Fixed- and floating-rate notes
|
| Structure: | Cash flow CLO
|
| Refinancing agent: | Wells Fargo Securities LLC
|
| Manager: | NXT Capital CLO 2014-1, LLC
|
| Settlement date: | July 24
|
|
|
| Class A-R notes
|
| Amount: | $188.75 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 140 bps
|
| Ratings: | Moody’s: Aaa
|
| S&P: AAA
|
|
|
| Class B-1-R notes
|
| Amount: | $24 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 190 bps
|
| Ratings: | Moody’s: Aa2
|
| S&P: AA
|
|
|
| Class B-2-R notes
|
| Amount: | $5 million
|
| Securities: | Senior secured fixed-rate notes
|
| Coupon: | 3.544%
|
| Ratings: | Moody’s: Aa2
|
| S&P: AA
|
|
|
| Class C-R notes
|
| Amount: | $37.25 million
|
| Securities: | Secured deferrable floating-rate notes
|
| Coupon: | Libor plus 275 bps
|
| Rating: | Moody’s: A2
|
|
|
| Class D-R notes
|
| Amount: | $16 million
|
| Securities: | Secured deferrable floating-rate notes
|
| Coupon: | Libor plus 375 bps
|
| Rating: | Moody’s: Baa2
|
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