Boston, MA, August 14, 2006 - NewStar Financial, Inc. ("NewStar"), a Boston-based specialty finance company, announces that it has provided financing to support an investment by Founders Equity Inc., the Hudson River Co-Investment Fund, L.P., and Fieldston Investors in Stone Source, a leading distributor of natural stone, ceramic tile, engineered stone, glass tiles and other decorative surfaces.
NewStar was Lead Arranger for the $20.5 million credit facilities comprising a six-year $4.0 million revolving loan and a six-year $16.5 million term loan.
"NewStar is pleased to be working with an industry leader like Stone Source and experienced sponsors like Founders Equity and Fieldston Investors," said Robert Kosian, managing director of middle market originations at NewStar. "We're backing an outstanding management team in this transaction and we look forward to working with them to meet their future financing needs as they continue to grow."
Stone Source distributes natural stone, ceramic tiles, glass tiles, engineered stone and other decorative surfaces. The Company's main office, showroom, warehouses and fabrication facilities are in New York City and it has branches and showrooms in Boston, Chicago and Washington D.C. and sales offices in Philadelphia and Los Angeles. The company offers a wide variety of architecturally significant materials, along with expert knowledge and service, that create design solutions for professional architects, designers and end users for residential and commercial projects.
NewStar's deal team for the transaction included Robert Kosian, Scott Poirier, Paul Feloney, Scott Trefry and Michael Chen.
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