NewStar Financial Provides Acquistion Financing For Cortec Group Fund IV, L.P.
Cortec Group acquires Construction Glass Industries Corporation
Boston, MA, March 6, 2007 NewStar Financial, Inc. (NASDAQ: NEWS), a Boston-based specialty finance company, announces that it has provided the financing to support Cortec Group Fund IV L.P.'s ("Cortec") investment in Construction Glass Industries Corporation ("CGI") along with Flavio Quesada, CGI's founder and CEO.CGI is headquartered in Miami, Florida and is a manufacturer of high quality, architectural grade impact-resistant aluminum windows and doors designed especially for coastal areas to offer protection from high velocity wind and airborne debris resulting from hurricanes and storms. "CGI benefits from expanded regulation and heightened hurricane awareness in high-velocity wind zones following the Florida hurricanes of 2004 and 2005. Homeowners and businesses have begun to realize the benefits of passive hurricane protection as it does not require any of the complications associated with the installation, application and removal of products such as shutters. We're very optimistic about CGI's growth prospects and look forward to partnering with management to achieve their goals for the Company" said Jeffrey Lipsitz, a Partner at Cortec.
Flavio Quesada, added "CGI has significant opportunities to aggressively penetrate new geographic markets through an expanded sales and marketing effort and to add to its product line to better serve the marketplace. We are extremely excited to find a partner in Cortec that shares our growth vision for the Company and is committed to investing in CGI in support of that goal."
NewStar was sole lender for the new $24 million senior secured credit facilities which included a 5-year $4 million revolver and a 5-year $20 million term loan."This was our first transaction with NewStar," said Michael Najjar, senior managing director at Cortec Group. "We received senior level attention throughout the process and were able to complete the transaction very smoothly and rapidly. We look forward to building on our relationship with NewStar in the future.""NewStar is pleased to begin a relationship with Cortec, a leader in lower middle-market buyouts, and looks forward to working with CGI, which has established itself as the premier impact-resistant window manufacturer in the state of Florida," said Tim Shoyer, co-head of middle market originations at NewStar Financial. NewStar's deal team for this transaction included Tim Shoyer, Ken Pulido, Pem Covington, and Chris Dias.
About NewStar Financial, Inc.:
NewStar Financial, Inc. was formed in June 2004 by a group of senior banking and capital market executives from leading financial institutions, including FleetBoston Financial Group, 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