NXT Capital to price $99.5 million of notes in second refinancing of NXT Capital CLO 2015-1

By Cristal Cody

Tupelo, Miss., April 2 – NXT Capital LLC subsidiary NXT Capital Investment Advisers LLC plans to price $99.5 million of notes due April 21, 2027 in a second refinancing of a 2015 middle-market collateralized loan obligation offering, according to a notice of proposed second supplemental indenture on Monday.

NXT Capital CLO 2015-1 LLC plans to price $39 million of class C-R2 secured deferrable floating-rate notes, $29.5 million of class D-R2 secured deferrable floating-rate notes and a $31 million tranche of class E-R secured deferrable floating-rate notes.

Wells Fargo Securities LLC is the refinancing placement agent.

NXT Capital Capital Investor Advisors will continue to manage the CLO.

In the first refinancing of $321 million of notes on Jan. 22, 2018, the CLO priced $219.5 million of class A-R senior secured floating-rate notes at Libor plus 115 basis points; $33 million of class B-R senior secured floating-rate notes at Libor plus 160 bps; $39 million of class C-R secured deferrable floating-rate notes at Libor plus 220 bps and $29.5 million of class D-R secured deferrable floating-rate notes at Libor plus 330 bps.

NXT Capital originally issued the notes on May 13, 2015. In that offering, the CLO sold $169.5 million of class A-1 notes at Libor plus 185 bps, $50 million of class A-2 notes at Libor plus 170 bps, $33 million of class B notes at Libor plus 255 bps, $39 million of class C notes at Libor plus 365 bps, $29.5 million of class D notes at Libor plus 415 bps, $31 million of class E notes at Libor plus 630 bps and $56,641,000 of non-rated subordinated notes with a residual coupon.

Proceeds from the second refinancing will be used to redeem the class C-R, D-R and E notes on April 22.

The CLO is backed primarily by senior secured small and medium enterprise loans.

NXT Capital is a middle-market lending and financial services firm based in Chicago.

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