NewStar Financial Provides $30,000,000 In Senior Financing For Beecher Carlson
Boston, MA, March 28, 2007 NewStar Financial, Inc. (NASDAQ: NEWS), a Boston-based specialty finance company, announces that it has provided $30.0 million of new financing to support the growth of Beecher Carlson, an existing portfolio company of Austin Ventures. Austin Ventures is a leading growth equity investor with more than $3 billion of capital under management.Beecher Carlson is a national commercial insurance and risk management brokerage firm distinguished by its specialized expertise in Executive Liability, complex property and casualty, captive management and actuarial consulting. NewStar served as Administrative Agent for the $30.0 million senior credit facilities with proceeds to be used to fund acquisitions and to provide additional growth capital for the Company.Beecher Carlson uses a combination of resources that include analytics, technology, and services to assess and model risk in a way that supports its clients' unique operational cultures and key risk differentiators. Founded in 1981, Beecher Carlson maintains its corporate offices in Atlanta with additional operations in Bermuda and in twelve states throughout the United States. Beecher Carlson's rapid growth since its infusion of private equity capital in 2004 is supported by a team of well-known industry veterans led by Tom Golub."We are excited to partner with such an experienced and well regarded management team and we look forward to providing the debt capital to further Beecher's growth strategy," said Andre Paquette, Director of middle market originations at NewStar. "This deal is a great demonstration of NewStar's investment thesis of backing winning management teams with strong equity sponsorship for high growth business plans in healthy sectors.""NewStar demonstrated a great understanding of the insurance brokerage marketplace and was able to use that knowledge to structure a creative debt facility that provides significant flexibility and capital for our growing company. NewStar was a true value-added partner throughout this process," said David Gamsey, CFO of Beecher Carlson.NewStar's deal team on the Beecher financing included Andre Paquette, Rob Milordi and Dipen Patel.
NewStar Financial is a specialized commercial finance company focused exclusively on meeting the complex financing needs of customers in the middle market through our corporate, commercial real estate, and structured products groups. Our senior banking teams call directly on customers to provide advice and finance a range of strategic transactions that may require some combination of senior secured, second lien and mezzanine financing. NewStar typically works with customers with financing needs of up to $150 million and cash flow as low as $5 million. We target 'hold' positions of up to $35 million, but may also underwrite or arrange transactions up to $100 million for syndications to other lenders. We are headquartered in Boston MA, with regional offices in Darien CT, Chicago IL, San Francisco CA, San Diego CA, and Charleston SC. In December of 2006, NewStar completed an Initial Public Offering. The Company's shares trade on the NASDAQ under the ticker symbol, NEWS. Please visit our website at www.newstarfin.com
for more detailed transaction and contact information.
Robert K. Brown
Gaffney Bennett Public Relations