NXT Capital is celebrating the first anniversary of establishing its Equipment Finance Group. Initial market receptivity to the platform was very positive, with momentum continuing to build throughout 2013 and into the first quarter of 2014.
 
Since its launch, transaction activity for NXT Capital Equipment Finance has steadily increased. The group has now committed to 24 transactions ranging from $3 million to $14 million in size, further validating the need for a sophisticated, large-ticket equipment finance provider to the sub-investment grade marketplace.
 
NXT Capital Equipment Finance specializes in offering a full range of equipment financing solutions up to $20 million for highly leveraged companies with substantial capital equipment needs. In select situations, the group also underwrites transactions up to $40 million. Representative clients and prospects cover a wide range of industries with broadly varying equipment needs.
 
“The deals we’ve financed and the opportunities we’ve seen from a diverse group of industry players demonstrate the difficulty that larger companies with elevated leverage profiles encounter when they seek equipment financings at $10 million and above,” said Michael Gay, Group Head.
 
The dimensions of the sub-investment grade market have become clear since NXT Capital launched its equipment platform. “Generally, we’re seeing larger, more operationally stable companies with higher leverage whose equipment finance needs outstrip the financing capacity available through their existing banking relationships,” he said.
 
“Most NXT Capital clients have annual revenues north of $200 million, but typical revenues are closer to $1 billion or higher,” Mr. Gay continued. “Most clients have leverage of 5x EBITDA or greater. That leverage profile results in S&P Ratings from B+ to CCC+, although we also serve many unrated companies.”
 
“We’re very optimistic about NXT Capital Equipment Finance’s ability to serve this segment of the market,” said Robert Radway, NXT’s Chairman and CEO. “We look forward to using NXT Capital’s significant funding capacity and underwriting expertise to aggressively grow the business.”
 
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 and San Francisco, NXT Capital targets senior financing opportunities of up to $150 million with a hold size up to $50 million.

Readers may also access the exclusive company profile posted May 2013:
NXT Capital Sets Sail in Equipment Finance