Benefit Street prices $438 million second CLO reprint; NXT Capital refinances two CLOs

By Cristal Cody

Tupelo, Miss., April 24 – The CLO refinancing market has been active with three vintage deals repriced.

Benefit Street Partners LLC priced $438 million of notes in a second refinancing of a 2014 broadly syndicated CLO.

Meanwhile, NXT Capital LLC subsidiary NXT Capital Investment Advisers LLC refinanced two middle-market CLO deals.

The CLO manager priced $122.65 million of notes from a 2017 middle-market CLO and $99.5 million of notes in a second refinancing of a 2015 middle-market CLO.

Year to date, about $10 billion of vintage CLOs have been refinanced, repriced or reissued, according to market sources.

Benefit Street refinances

Benefit Street Partners priced $438 million of notes due Jan. 20, 2029 in a second refinancing of the Benefit Street Partners CLO IV Ltd./Benefit Street Partners CLO IV LLC transaction, according to a market source and a notice of executed second supplemental indenture on Tuesday.

In the senior tranches, Benefit Street Partners CLO IV sold $305 million of class A-1RR senior secured floating-rate notes at Libor plus 125 basis points and $65 million of class A-2-RR senior secured floating-rate notes at Libor plus 175 bps.

Deutsche Bank Securities Inc. was the refinancing placement agent.

Benefit Street Partners originally issued $512.27 million of notes in the CLO on May 29, 2014. The CLO was first refinanced Dec. 22, 2016.

The transaction is backed primarily by broadly syndicated senior secured loans.

The New York City-based credit investment arm of Providence Equity Partners LLC brought two CLO transactions in 2014.

NXT Capital reprices CLO

NXT Capital Investment Advisers refinanced $122.65 million of notes due April 20, 2029 from the NXT Capital CLO 2017-1 LLC deal, according to a notice of executed first supplemental indenture on Tuesday.

At the top of the capital stack, NXT Capital CLO 2017-1 priced $39.7 million of class B-R senior secured floating-rate notes at Libor plus 235 bps.

Wells Fargo Securities LLC was the refinancing placement agent.

The deal is backed primarily by senior secured loans, cash and eligible investments.

NXT Capital is a Chicago-based middle-market lending and financial services firm.

NXT refinances 2015 CLO

NXT Capital Investment Advisers also priced $99.5 million of notes due April 21, 2027 in a second refinancing of a 2015 middle-market CLO offering, according to a notice of executed second supplemental indenture on Tuesday.

NXT Capital CLO 2015-1 LLC sold $39 million of class C-R2 secured deferrable floating-rate notes at Libor plus 220 bps, $29.5 million of class D-R2 secured deferrable floating-rate notes at Libor plus 330 bps and $31 million tranche of class E-R secured deferrable floating-rate notes at Libor plus 630 bps.

Wells Fargo Securities was the refinancing placement agent.

NXT Capital Investment Advisors will continue to manage the CLO.

NXT Capital originally issued the notes on May 13, 2015 and sold $321 million of notes in the first refinancing on Jan. 22, 2018.

The CLO is backed primarily by senior secured small and medium enterprise loans.

NXT Capital is a middle-market lending and financial services firm based in Chicago.

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