NXT Capital, LLC has closed a $308 million CLO, named NXT Capital CLO 2012-1. The financing, the first of its kind for NXT, is secured almost exclusively by middle-market senior-secured loans directly originated by NXT and has a three-year reinvestment period.

NXT sold securities rated from AAA through BB and retained all the equity interests. Pricing on the AAA-rated securities at LIBOR+1.90% was a post-crisis low for a middle-market CLO. Wells Fargo Securities served as lead arranger with BMO Capital Markets as co-manager.

“Our ability to generate strong investor interest in this CLO reflects NXT Capital’s differentiated direct origination platform and our disciplined approach to risk management,” said NXT’s Chairman and CEO, Robert Radway. “The success also illustrates the middle-market’s appeal to investors, who appreciate the diversification it adds to their investment portfolio and the consistent performance through market cycles of the underlying loans and the CLO structure itself,” he continued.

“This CLO is another important step in expanding and diversifying our funding platform,” noted Neil Rudd, Chief Financial Officer. “It allows NXT to secure attractively priced term financing for a portion of our portfolio and enhance returns for our investors.”

NXT Capital provides structured financing solutions to middle-market and emerging growth companies and real estate investors through its Corporate Finance, Real Estate Finance and Venture Finance groups. Based in Chicago with offices in New York, Atlanta, Boston, Dallas, Newport Beach and Silicon Valley, NXT Capital targets senior financing opportunities of up to $150 million with a hold size up to $50 million.