Boston, MA, April 1, 2005 - NewStar Financial, Inc. ("NewStar"), a Boston-based commercial finance company, announces that it has provided financing to ZOOTS, a leading national chain of dry cleaners. ZOOTS is owned by Charlesbank Partners LLC and JP Morgan Partners LLC.
NewStar was the sole lender on the recapitalization facilities which include a $6.5 million revolving loan and a $7 million term loan.
"NewStar works very closely with leading financial partners like Charlesbank and JP Morgan," said middle market co-head David Dobies. "This transaction allowed us to put our expertise, relationships and resources to work for the benefit of ZOOTS."
Michael Eisenson, Chief Executive Officer of Charlesbank said, "We solicited proposals from several lenders; however, many of them were ultimately unable to put forth a thoughtful, viable deal. NewStar distinguished themselves by structuring a creative financing solution that worked best for us."
NewStar's deal team for the transaction included Mark Cordes, David Belanger, Pem Covington and Michael Purcell.
ZOOTS, founded in 1988, is one of the largest branded dry cleaners in the US serving customers in 10 states, offering superior quality and environmentally friendly processing. The company operates more than 50 stores and 120 home delivery routes.
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