Middle market CLOs have remained relatively scarce since the financial crisis, as it is still difficult for deal sponsors to get financing to warehouse loans to small and medium-sized companies.

Most of the deals to date have come from middle market lenders opting to securitize loans they are already holding on their books. NXT Capital is one of the latest commercial lenders to come to market with a CLO; this month it priced a $308 million deal, NXT Capital CLO 2012-1. The senior, 'AAA'-rated tranche printed at Libor plus 190 basis points, which the firm said was the lowest level for a middle market CLO since the financial crisis.

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