NXT Capital moves waste transport acquisition

The Chicago lender provided $195 million in senior secured lines toward the refinancing of PE-backed Custom Ecology and its acquisition of another waste management company.

NXT Capital has provided a $195 million senior secured credit facility to waste transport company Custom Ecology. The package refinanced the company’s existing debt and provided additional capital for the acquisition of Stansley Industries, another US waste transport firm. Custom Ecology is a portfolio company of private equity firm Kinderhook Industries.

NXT Capital acted as the sole lead arranger, sole bookrunner and administrative agent in the transaction, the Chicago-based alternative lender said in a statement. The deal is on the larger side for NXT, which usually makes loans in the $50 million to $70 million range. NXT chief executive Robert Radway told PDI in a recent interview that he is aiming for his firm to make larger loans of between $125 million and $250 million. The firm is currently investing its third senior loan fund, which it closed at $800 million, including equity capital and leverage, in January. 

“NXT’s creativity and certainty of execution makes them an ideal financing partner for Custom Ecology,” said Corwynne Carruthers, managing director at Kinderhook Industries, in a statement.  

Mabeton, Georgia-based Custom Ecology provides full-service municipal, industrial and hazardous waste transportation services. The company is licensed and insured to transport all types of liquids, semi-liquids, sludges, solids and drums throughout the US and Canada.   

Stansley Industries provides trucking and transportation services for the waste management, recycling and bulk materials markets throughout Michigan and Ohio. 

Founded in 2003, Kinderhook Industries is a private equity firm with $1.25 billion of committed capital. New York-based Kinderhook primarily makes control investments in companies with transaction values of between $25 million and $250 million. 

NXT Capital provides structured financing options through its corporate finance, equipment finance and real estate finance divisions. The firm is based in Chicago with additional 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 $8.5 billion in available capital including leverage.