Boston, MA, July 15, 2005 - NewStar Financial, Inc. ("NewStar"), a Boston-based commercial finance company, announces that it has provided financing to 1st Financial Bank USA ("1st Financial") as part of two $100 million credit card receivables transactions. These transactions support 1st Financial's college student portfolio. NewStar provided $4.5 million of subordinated debt in two separate transactions, for a total of $9.0 million, which had senior debt tranches insured by Ambac and FSA, respectively.
Buck Burnaman, Managing Director of NewStar commented "We were impressed by the quality of 1st Financial's management and their portfolio performance. Our deal team worked closely with their professionals to close a creative and high quality transaction in a matter of weeks."
NewStar's deal team for the transaction included Tom Calhoun, Samuel Belu-John, and Cyrus Zahedi.
Originally founded in 1910, 1st Financial Bank USA provides credit card, installment and commercial loan, and deposit services. Its primary business is its nationwide credit card business focused on college students and graduates.
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