NXT Capital priced the senior, 'AAA'-rated tranche of a $308 million CLO at Libor plus 190 basis points, the middle market lender said Thursday.
That was below the initial price talk of Libor plus 195 basis points, as disclosed in a presale report by Moody’s Investors Service, and the lowest level for a middle-market CLO since the financial crisis, according to NXT’s statement.
The deal, NXT Capital CLO 2012-1, is NXT’s first CLO and is secured almost exclusively by middle-market senior-secured loans directly originated by the Chicago-based firm. It has a three-year reinvestment period.
“This CLO is another important step in expanding and diversifying our funding platform,” chairman and CEO Robert Radway said.
NXT sold securities rated from 'AAA' through 'BB' and retained all the equity interests.
Wells Fargo Securities served as lead arranger with BMO Capital Markets as co-manager.