NewStar Financial Leads $44 Million Financing For ZS Fund's Acquisition of VPSI Inc.
Leading commuter vanpool company acquired by sponsor
Boston, MA, May 7th, 2007 NewStar Financial, Inc., a Boston-based commercial finance company, announces the closing of a $44 million financing to support New York-based private equity group ZS Fund L.P.'s acquisition of VPSI Inc., the largest provider of professionally-managed commuter vanpooling services in the U.S.VPSI, headquartered in Troy, MI, was launched from within Chrysler Corporation's Office of Public Responsibility in the mid-seventies as a way to conserve fuel and reduce vehicle emissions. Today, the company manages a fleet of nearly 4,000 vans from more than 40 commuter centers serving major urban areas throughout the U.S and Europe. In 2006, VPSI accommodated over 25 million passenger trips."We are excited about partnering with the VPSI management team to strengthen their existing leadership position in the commuter vanpooling market. The combination of high gas prices, increased traffic congestion and environmental awareness creates an excellent landscape for continued growth in commuter vanpooling in the years ahead" said Adam Lehrhoff, Partner at ZS Fund L.P.
"NewStar was an integral part of the transaction process and provided a flexible financing package that not only allowed us to complete the transaction in a timely manner, but also provided the Company with additional capital to execute its growth initiatives. This was our second transaction with NewStar over the past six months, and we look forward to working with them again on future ZS investments." Lehrhoff added."NewStar is excited to be working with VPSI's outstanding management team and we are pleased to be able to enhance our already strong relationship with ZS Fund" said Mark Cordes, Managing Director at NewStar. "VPSI has established itself as the market leader in providing vanpool services in the U.S. and continues to increase its share by adding new customers in new geographies. NewStar is excited about supporting VPSI's expansion by providing additional capital to meet its future needs."NewStar served as lead arranger for the $44 million credit facilities, which included a $10 million revolving credit and a $34 million term loan.The deal team for this transaction from NewStar included Mark Cordes, Paul Feloney, Michael Purcell, and Nicole Gain.
About NewStar Financial, Inc.:
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