Boston, MA, November 7, 2006 - NewStar Financial, Inc. ("NewStar"), a Boston-based commercial finance company, has provided financing to support the acquisition of Apartment MediaWorks L.L.C. ("MediaWorks") by newly formed joint venture, DirecPath, LLC.
NewStar was Sole Arranger and Administrative Agent for the new $50,000,000 credit facilities, which include a revolving loan, a term loan and an acquisition and capital expenditures facility. The credit facilities consist of a six-year, $10.0 million revolving loan, a six-year, $25.0 million term loan, and a six-year, $15.0 million delayed draw term loan. Participants in the transaction are American Money Management Corporation and Plainfield Asset Management LLC.
Formed in May 2006, DirecPath, LLC ("DirecPath") is a joint venture between Hicks Holdings LLC and The DIRECTV Group, Inc. ("DIRECTV"). DirecPath was formed to provide bundled DIRECTV® programming, broadband internet and voice services, security and other locally based services to multiple-dwelling units ("MDUs") across the country. The new venture plans to offer a full range of bundled services all on a single bill to the MDU market, which includes high-rise condominiums, apartment complexes and gated communities.
Thomas O. Hicks, chairman and chief executive officer of Hicks Holdings LLC, said, "With a deep and experienced deal team, NewStar set itself apart from competitors early on by proposing a creative solution to DirecPath's financing needs. With its strong middle-market focus, NewStar proved to be a perfect partner for this exciting new venture."
MediaWorks provides broadband services to MDU properties throughout the Southeast. "With nearly 40,000 homes passed, MediaWorks represents DirecPath's largest acquisition to date," said Eric C. Neuman of Hicks Holdings LLC. "NewStar's Media Finance team's knowledge of the industry was critical in understanding DirecPath's business plan. The Hicks, DIRECTV and NewStar teams worked well together to execute an important and dynamic transaction," said Neuman.
"We are excited about the opportunity to finance a joint venture of Hicks Holdings and The DIRECTV Group, Inc. It's another example of our ability to structure attractive solutions for our customers," said Tim Conway, CEO of NewStar.
NewStar's deal team for the transaction included David Dobies, Rob Milordi, Jeff Greene, John Bosco and Kristen Abels
About NewStar Financial, Inc.:
NewStar Financial, Inc. was formed in June 2004 by a group of senior banking and capital markets executives from leading financial institutions, including FleetBoston Financial, Citigroup and JP Morgan Chase, and leading institutional investors including Capital Z Partners, JP Morgan Corsair Capital Partners and Och-Ziff Capital Management Group. NewStar is focused exclusively on providing customized financing solutions to mid-sized borrowers in three lending groups: Middle Market Corporate, Commercial Real Estate, and Structured Products. For more information, please contact the appropriate individual below.