Boston, MA, February 21, 2006 - NewStar Financial, Inc. ("NewStar"), a Boston-based specialty finance company, announces that it has provided financing to support JetStar Energy Services, Inc. ("JetStar") in their acquisition of Acid Services, LLC ("ASL").
JetStar was created through the combination of Rio Pumping Services, Inc. and Jet-Star Co., which were acquired and merged in May 2005 by Parallel Investment Partners ("Parallel"). JetStar, based in Dallas, TX, uses high horsepower pressure pumping equipment to provide stimulation and completion services in new and existing oil and gas wells in North Texas and Southern Oklahoma.
NewStar was Documentation Agent for the $43 million senior secured credit facilities comprising a 4-year, $5 million revolving loan; a 4-year, $5 million capital expenditure line; a 4-year, $21 million term loan A; and a 4-year, $12 million term loan B. NewStar partnered with lead arranger ORIX Leveraged Finance on this transaction.
"NewStar is pleased to be participating in this transaction, bringing together an industry leader in JetStar with a top tier sponsor in Parallel," said Robert Kosian, managing director of middle market originations in the South for NewStar. "The combination of JetStar and ASL will secure the company's position as a leading provider of oilfield pressure pumping services throughout the mid-continent region."
NewStar's deal team for the transaction included Robert Kosian, Walter Marullo, Keith Cox, and John Bosco.
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