Daily News: August 14, 2012

NXT Capital Receives SBIC License


NXT Capital announced that its subsidiary, NXT Capital SBIC, L.P., (NXT SBIC) has received a license from the U.S. Small Business Administration (SBA) to operate as a Small Business Investment Company.

NXT plans to invest up to $75 million in equity in NXT SBIC over the next three years. When combined with $150 million of ten-year debt from the SBA, this will provide as much as $225 million of dedicated capital to support the growth of NXT Venture Finance. NXT also recently closed two separate senior secured credit facilities totaling $75 million. This amount, plus NXT SBIC and existing sources of capital, will give NXT Venture Finance approximately $500 million to invest in emerging growth companies.

“Securing the SBIC license and closing on both credit facilities are significant milestones,” said Jan Haas, group head, NXT Venture Finance. “With a strong balance sheet, highly experienced team and focus on providing less dilutive and more flexible forms of capital, NXT Venture Finance is ideally positioned to meet the financing needs of entrepreneurs and their companies.”

“We are very appreciative of the support we have received from the SBA and our other financing partners,” said Robert Radway, NXT’s chairman and CEO. “This substantial, stable capital base will help drive NXT Venture Finance’s ongoing growth and success.”

NXT Capital Venture Finance offers senior and subordinated term loans in the $1 million to $20 million range to emerging growth companies backed by venture capital and private equity firms, particularly those in the technology and life science sectors.

NXT Capital provides structured financing solutions to middle-market and emerging growth companies, as well as real estate investors, through its Corporate Finance, Venture Finance and Real Estate Finance groups.