NXT Capital funds add-on for Material Handling Services

The $22m loan is the third facility extended to the company after an initial $100m investment.

NXT Capital extended another credit facility to Material Handling Services, which will support the acquisition of National Glass & Gate Services.

The Chicago-based mid-market lender said on Thursday it upped the Holland, Ohio-based company’s senior secured credit facility to $175 million credit facility to Material Handling, making the new facility a $22 million investment. The initial $100 million senior secured facility came in May 2014, while the second loan, a $53 million facility, was made in June. The latter investment was to fund add-on acquisitions as well.

Terms of the deal were not disclosed, and an NXT spokeswoman declined further comment.
Private equity firm CI Capital Partners acquired Material Handling in 2012. At the time, another alternative lender, Prospect Capital Corporation, also provided financing for the deal. The business development company, managed by Prospect Capital Management, provided a $28 million senior secured loan. The total price-tag of the buyout was not disclosed.

NXT provides loans to private equity-backed mid-market companies. Founded in 2009 by veterans of Merrill Lynch Capital and Heller Financial with the support of Stone Point Capital, the firm has dedicated corporate finance and real estate finance units.

Material Handling Services provides fleet and asset management services, material handling equipment, doors and docks to North American manufacturing, distribution, healthcare and hospitality companies.