NXT Capital arranges $29m loan for aerospace company

The senior secured facility will go towards PE-backed Sunvair Aerospace Group’s refinancing, as well as an acquisition of another aviation company.

NXT Capital has provided a senior secured credit facility to support the refinancing of Sunvair Aerospace Group, a portfolio company of Blue Sea Capital, the Chicago-based lender said. 

The transaction included Sunvair’s acquisition of Aviation Avionics & Instruments (AAIC). 

NXT Capital acted as the sole lead arranger, bookrunner and administrative agent for the transaction, the lender said in a statement last Friday. The investment was funded out of NXT’s corporate finance business, which is currently investing its $800 million NXT Capital Senior Loan Fund III.

Based in Valencia, California, Sunvair Aerospace Group provides component MRO (maintenance, repair and operations) services to commercial, regional and military aircraft operators. Sunvair repairs and overhauls landing gear and related components through a subsidiary founded in 1956.

Sunvair’s acquisition of AAIC adds specialised capabilities in the repair of accessories, including avionics, flight instruments, pressure sensing components and environmental control systems. 

“NXT Capital moved quickly by providing a termsheet early in the process,” Scott Kirkendall, principal at Blue Sea Capital, said. “Equally important, NXT delivered on those terms when the deal closed.”

NXT declined to disclose terms of the transaction. NXT has worked with Blue Sea on one other deal in the past.

Blue Sea Capital is a private equity firm based in West Palm Beach, Florida, with an additional office in El Segundo, California. The firm invests in growth-oriented lower mid-market companies valued at up to $200 million. Blue Sea has $327 million in assets under management and invests primarily across three industries: aerospace & defense, healthcare and industrial growth.

NXT Capital provides structured financing options through its corporate finance, equipment finance and real estate finance groups. In addition to Chicago, the firm has offices in Atlanta, Charlotte, Dallas, Los Angeles, Nashville, New York, Phoenix, San Francisco and Stamford. NXT has $5.5 billion in assets under management and about $8 billion in capital commitments, taking leverage into account.