Boston, MA, March 22, 2005 - NewStar Financial, Inc. ("NewStar"), a Boston-based commercial finance company, announces that it has provided recapitalization financing to Resource Label Group, LLC ("RLG"), a printing company in Tennessee. Lineage Capital, an independent private equity fund that invests in middle-market manufacturing, distribution and service businesses in North America, has acquired a controlling stake in RLG.
The debt component of this multi-product recapitalization includes $17 million of senior secured credit facilities and $5 million of mezzanine capital.
"NewStar offered a number of alternatives for capital structuring to both Lineage and RLG management to maximize the company's flexibility," said Tim Conway, NewStar's Chief Executive Officer. "Providing clients with options, understanding their needs and meeting expectations are all part of NewStar's success."
NewStar's deal team for the transaction included Dave Dobies, Paul Holian, Paul Feloney and Michael Chen.
RLG, headquartered in Franklin, Tennessee, prints high-quality paper, film, and foil pressure-sensitive labels, extended text / booklet labels, and coupon labels using water-based flexography and ultra-violet rotary letterpress printing technology to a broad range of customers located primarily in the southeastern United States.
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