Boston, MA, March 13, 2006 - NewStar Financial, Inc., a Boston-based specialty finance company, announces that it has provided a senior credit facility to support Carlyle/Riverstone Global Energy & Power Funds' and Cherington Capital's acquisition of International Logging, Inc ("ILI") from Mr. Vern Jones, founder of ILI , and other investors.
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 senior credit facilities comprised of a 5-year, $5.0 million revolving credit facility, a 5-year, $18.0 million term loan, and a 5 _-year, $10.3 million term loan. Further terms of the financing were not disclosed. GSC Partners and Citigroup's CLO also committed to the deal.
"For Cherington and Carlyle/Riverstone, this is our first deal working with Newstar," said Charles Cherington, Managing Partner of Cherington Capital. "They grasped the complexities of a global business, and structured an innovative financing solution that distinguished Newstar from the competition."
"Teaming up with Carlyle/ Riverstone and Cherington to get this transaction closed was a milestone energy deal for us," said Tim Conway, CEO of NewStar "We leveraged our extensive banking experience in the international energy sector to deliver the type of value-added solution the sponsors required."
NewStar's deal team for the transaction included Bob Kosian, Mark du Four, Walter Marullo, Keith Cox and Neha Talwar.
ILI, founded in 1990 and headquartered in Houston, TX, is the fifth largest mud logging services company in the world with operations in Africa, Asia, Latin 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 90 logging units and more than 400 field geologists worldwide, provides services to major oil companies and national oil companies.
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