Boston, MA, July 11, 2006 - NewStar Financial, Inc. ("NewStar"), a Boston-based specialty finance company, announces that it has provided financing to support the acquisition of Bodybuilding.com by Milestone Partners ("Milestone") of St. Davids, Pennsylvania.
Founded in 1999 in Boise, Idaho as a distributor nutritional supplements and fitness-related products, Bodybuilding.com has rapidly grown into one of the leading electronic retailers of nutritional supplements. Its website includes more than 18,000 pages of fitness-related content including product reviews, fitness, and general health and nutrition content and a thriving online community with in excess of 40,000 members. The company, who markets in excess of 5,500 SKUs from more than 250 of the industries leading manufacturers, generated sales of approximately $46.9 million in the fiscal year ending December 31, 2005.
NewStar served as the sole lender and administrative agent for the new $15 million, five-year senior credit facilities which includes a $2.5 million revolving loan and $12.5 million of term loan commitments.
"Bodybuilding.com has carved out an impressive niche in the dietary supplement market through its efforts to develop an online fitness community," said Pat McAuliffe, a Managing Director in NewStar's corporate lending group, further noting that "NewStar believes the ownership has positioned the company to benefit from both the substantial growth expected in the dietary supplements category as well as the continuing trend towards internet commerce."
Bodybuilding.com founder and Chief Executive Officer Ryan DeLuca commented that the company "is excited about its new partnership with Milestone. We believe the equity group's contacts in the financial and business community will enable the company to continue to improve its business model and further position bodybuilding for future growth."
NewStar's deal team for the transaction included Pat McAuliffe, Rob Hornstein, Bruce Catania, Michael Purcell, and Jeff Augustyn.
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