show menu
close menu
LinkedIn icon

NewStar Completes $600 Million Term Debt Securitization

Download pdf Download PDF

Boston, MA, June 5, 2007 - NewStar Financial Inc., a specialized commercial finance company, announced today that it completed a $600 million term debt securitization. The offering of NewStar Commercial Loan Trust 2007-1 CLO is NewStar's third balance sheet securitization since inception and part of a programmatic approach to the company's funding strategy. The notes offered through this CLO transaction are backed by a diversified portfolio of commercial loans originated by NewStar. The transaction was executed through a private offering via Rule 144A. NewStar placed various classes of notes rated AAA through BBB totaling $546 million and will retain BB-rated notes and an equity interest, which together represent 9% of the collateral pool, or $54 million. "This transaction underscores the quality of NewStar's growing middle market franchise and the value of our direct origination platform. It further strengthens our balance sheet and provides us greater financial flexibility as we begin our fourth year of operation. The quality of the execution also demonstrates our broad access to the capital markets and ability to expand and diversify our investor base," said NewStar CEO, Tim Conway."The CLO structure continues to provide attractive term financing for our balance sheet as demonstrated by the execution levels of our AAA A-1 bonds, which priced at a rate of Libor plus 24 basis points, three basis points tighter than our previous deal and a new benchmark for our CLO program," said John Frishkopf, head of asset management and treasury at NewStar. NewStar Financial, located in Boston, will serve as manager of the CLO, which has a six-year reinvestment period. The Class A through E notes are rated by three rating agencies. The blended pricing for the 2007-1 notes was LIBOR plus 0.47%.Citi and Wachovia Securities acted as joint book runners, with Citi as structuring agent. ABN AMRO Incorporated, BMO Capital Markets, and JPMorgan were co-managers on the transaction.About NewStar Financial, Inc.:

NewStar Financial is a specialized commercial finance company focused principally 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 for more detailed transaction and contact information.

Corporate Inquiries:

NewStar Financial

Robert K. Brown

(617) 848-2558
Press-Related Inquiries:

Gaffney Bennett Public Relations

Annie Donnelly
(860) 416-1365

Hex divider blue

Copyright 2017 NewStar Financial, Inc. All Rights Reserved. Terms of use.