NXT Capital offers $122.65 million notes in refinancing of NXT Capital CLO 2017-1

By Cristal Cody

Tupelo, Miss., April 2 – NXT Capital LLC subsidiary NXT Capital Investment Advisers LLC plans to refinance $122.65 million of notes due April 20, 2029 from a 2017 vintage middle-market collateralized loan obligation deal, according to a notice of proposed first supplemental indenture on Monday.

NXT Capital CLO 2017-1 LLC plans to price $39.7 million of class B-R senior secured floating-rate notes (AA expected), $31.75 million of class C-R secured deferrable floating-rate notes (A expected), $24.8 million of class D-R secured deferrable floating-rate notes (BBB- expected) and $26.4 million of class E-R secured deferrable floating-rate notes (BB expected).

Wells Fargo Securities LLC is the refinancing placement agent.

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

NXT Capital 2017-1 originally issued the notes on April 13, 2017.

The CLO 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.

Proceeds will be used to redeem the outstanding notes on April 22.

The deal is backed primarily by senior secured loans, cash and eligible investments.

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

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