Boston, MA, March 4, 2005 - NewStar Financial, Inc. ("NewStar"), a Boston-based commercial finance company, announces that it has provided acquisition financing to Danley IEM in support of its acquisition of Anchor Lamina to form The Anchor Danly Group. Connell Limited Partnership will control 100% of The Anchor Danly Group. The Anchor Danly Group is the leading manufacturer of die sets and related components in both the American and Canadian marketplace sold primarily into the automotive sector.
NewStar served as lead arranger on a $23 million second lien term loan in support of the transaction. Bank of America Business Capital led a syndicate of lenders in providing $80 million of first lien term and revolving debt to the combined company as part of this transaction.
"This was a great transaction for NewStar to get involved with - two great companies coming together with the assistance of a great financial team," said Tim Conway, Chief Executive Officer of NewStar. "We selected NewStar for their structuring expertise, insights, and ability to respond quickly. Their 'can-do approach' and in-depth understanding of our business allowed us to close the acquisition with sufficient liquidity to support our operations going forward," said Frank Doyle, Chief Executive Officer of Connell, L.P.
NewStar's deal team for the transaction included Tim Shoyer, Paul Holian, Paul Feloney and Michael Purcell.
Anchor, founded in the 1960's, and Danly IEM, founded in the 1920's, were the largest two manufacturers of fabricated die sets and related components in the North America.
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