NXT Capital closes $408m CLO

The private debt manager has also boosted its equipment finance team by hiring former GE Capital MD David Feldser.

Chicago-headquartered NXT Capital has closed its fourth CLO, NXT Capital CLO 2015-1, on $408 million. The CLO has a four-year reinvestment period and is secured almost exclusively by mid-market senior secured loans originated by NXT, the firm announced.

NXT sold securities rated from AAA through BB and retained all the equity interests. Seven of the investors purchasing securities in the CLO were first-time investors in NXT Capital’s CLO platform.

Robert Radway, chairman and chief executive of NXT, said strong interest in NXT’s CLOs from existing and new investors reflected the firm’s “robust direct loan origination platform and proven risk management practices”.

“Investors are increasingly confident in the fact that middle market loan assets offer valuable diversification, consistent performance and attractive risk-adjusted returns,” he said in a statement.

NXT brings its total issuance of mid-market CLOs to more than $1.4 billion.

Wells Fargo Securities served as the lead manager, structuring agent and bookrunner for the transaction. BMO Capital Markets GKST served as co-lead manager.

NXT Capital provides structured financing solutions through its corporate finance, equipment finance and real estate finance groups. The firm also announced yesterday (May 13) the hiring of David Feldser as a director of originations on its equipment finance division. He will support origination efforts in the mid-Atlantic region and be based in Charlotte, North Carolina.

Feldser joined NXT Capital Equipment Finance from GE Capital Corporate Finance, where he was most recently a managing director responsible for a team of six people originating loans and leases to mid-market companies. He previously served as a vice president / senior account manager and associate sales representative at GE Capital.

“David’s experience and relationships will help us provide liquidity and creative equipment financing solutions to highly-leveraged companies in the Mid-Atlantic region.” Michael Gay, group head, said.

NXT Capital offers a range of loans and leases from $5 million to $40 million to finance new and used equipment for companies with revenues of $100 million and above across most industries. Products include secured term loans, tax-oriented leases, finance leases, operating leases, TRAC leases and sale-leaseback transactions.

The investment firm has offices in Chicago, Atlanta, Charlotte, Dallas, Los Angeles, Nashville, New York, Phoenix, San Francisco and Stamford.