Boston, MA, September 6, 2006 - NewStar Financial, Inc., a Boston-based specialty finance company, announces that it has provided a senior credit facility to support International Logging, Inc.'s acquisition of the mud logging assets of Datalog Technology, Inc. ("DTI"). DTI is a privately held company headquartered in Calgary, Canada.
International Logging, Inc ("ILI") is a company owed by Carlyle/Riverstone Global Energy & Power Funds and Cherington Capital. Riverstone Holdings LLC and The Carlyle Group are the co-general partners of Carlyle/Riverstone Global Energy and Power Funds while Cherington Capital is a Boston-based private equity investment firm focused on recapitalizations and leveraged buyouts of middle market companies, with an emphasis on the energy industry.
NewStar served as Lead Arranger and Administrative Agent for the $60.5 million senior credit facilities comprised of an $8.0 million revolving credit facility and $52.5 in various term loans. NewStar was joined in the deal by four additional lenders, including Citigroup Global Markets, Golub Capital, GSC Partners, and GLC Management. This follow-on deal increases and refinances a $33.3 million deal led by NewStar in March 2006 to finance the acquisition of ILI.
"For Cherington and Riverstone, it was once again a pleasure working with Newstar," said Charles Cherington, managing partner of Cherington Capital. "They were very flexible in working with us to tailor a financing to the rapidly expanding nature of the energy sector. We highly recommend them."
ILI, founded in 1990 is headquartered in Houston, TX. ILI is now is the second largest mud logging services company in the world with global operations including Africa, Asia, North American, South, America and the Middle East. Mud logging is the process of gathering critical surface and down-hole information including hydrocarbon gas analysis, geopressure data analysis, geological evaluation and well status monitoring. As part of its services, ILI provides well site geologists, pressure specialists and a data transmission product that delivers real-time data from a well to its customers. ILI, which has a fleet of over 140 logging units and more than 750 field geologists worldwide, provides services to major oil companies and national oil companies.
"Teaming up with Carlyle/ Riverstone and Cherington again to close this transaction is a great example of the relationships we value," said Timothy Conway NewStar's CEO. "NewStar experience in the international energy sector is helping the sponsors of this deal build a world class company."
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.
Gaffney Bennett Public Relations