NXT Capital announced the closing of NXT Capital CLO 2014-1, a $357 million collateralized loan obligation (CLO). The financing, NXT’s third CLO in three years, is secured almost exclusively by middle-market senior secured loans originated by NXT and has a four-year reinvestment period.

NXT sold securities rated from AAA through BB and retained all the equity interests. Pricing on the AAA-rated securities of LIBOR+1.75% represents the best execution for an exclusively middle-market CLO in 2014. Wells Fargo Securities, LLC served as the Lead Manager, Structuring Agent and Bookrunner for the transaction and BMO Capital Markets GKST Inc. served as Co-Lead Manager.

“Continued strong interest in NXT’s CLOs confirms expanding investor recognition of our robust direct loan origination platform and proven risk management practices,” said Robert Radway, chairman and CEO. “Furthermore, our ability to attract first time investors validates a growing appreciation of the valuable diversification that middle market loan assets offer, as well as their consistent performance and attractive risk adjusted returns.”

“With the closing of this latest transaction, NXT has topped $1 billion in CLO issuance,” noted Neil Rudd, chief financial officer. “This clearly demonstrates our ability to expand and diversify our funding platform, and to access a source of stable and competitively priced financing that helps us compete effectively and enhance returns to our investors.”

NXT Capital provides structured financing solutions to middle-market companies and real estate investors through its Corporate Finance, Equipment Finance and Real Estate Finance groups. Based in Chicago with offices in Atlanta, Charlotte, Dallas, Kansas City, Los Angeles, Minneapolis/St. Paul, New York, Phoenix, San Francisco and Stamford, NXT Capital targets senior financing opportunities of up to $150 million with a hold size up to $50 million.