NXT Capital announced the closing of NXT Capital CLO 2017-1, a $406 million CLO. The financing is NXT’s fifth CLO and is secured almost exclusively by middle market senior secured loans originated by the company. The CLO has a four-year reinvestment period.

NXT sold securities rated AAA through BB and retained all the equity interests. Ten of the investors purchasing securities in this CLO were new to NXT Capital’s CLO platform. Wells Fargo Securities served as the Lead Manager, Structuring Agent and Bookrunner for the transaction.

“Strong interest in NXT’s CLOs from existing and new investors signals further recognition of our robust direct loan origination platform and proven risk management practices,” said Robert Radway, Chairman and CEO. “It also demonstrates growing investor recognition of the benefits of middle market CLOs, which include valuable diversification, consistent performance and attractive risk-adjusted returns.”

“NXT is one of the most experienced and consistent issuers of middle market CLOs with cumulative issuance across five CLOs of over $1.8 billion,” noted Neil Rudd, Chief Financial Officer. “This remains a core element of NXT’s diversified funding strategy, providing a valuable source of stable, competitively priced financing to fund client transactions and enhance returns to our investors.”