NewStar Financial Serves as Sole Lender for $17 Million Refinancing of Tex Tech Industries, Inc.
Boston, MA, June 12, 2007 NewStar Financial, Inc. (NASDAQ: NEWS), a commercial finance company, announced that earlier this year it provided a senior debt refinancing for Tex-Tech Industries, Inc. ("Tex Tech"). Tex Tech, based in Portland, ME, is a leading manufacturer and distributor of high performance textiles for ballistics protection to the military, corrections, and law enforcement markets, as well as highly-engineered textiles used in aerospace, fire blocking, filtration, and other applications. The Company is also the world's largest supplier of tennis felt, with a worldwide market share in excess of 80%. Tex Tech is majority owned by Peninsula Capital Partners, a Detroit-based investment company specializing in subordinated
debt and structured equity investments in the middle-market."NewStar is excited about working with Tex Tech and the exceptional team they have in place," said Mark Cordes, Managing Director at NewStar. "We look forward to watching the Company take advantage of the many growth opportunities that are the result of their hard work in establishing new relationships over the past several years."John Stankiewicz, CFO of Tex Tech said, "We greatly appreciate the efforts of everyone at NewStar in providing an appropriate loan structure for our needs. As our company moves forward, I am now confident we will have the flexibility to address our growth prospects while continuing as the leader within our selected markets."NewStar was the Sole Lender and Administrative Agent for the $17 million senior credit facilities that included a 4-year, $7.0 million Revolving Credit Facility and a 4-year, $10.0 million Term Loan. The transaction closed on January 5, 2007.NewStar's deal team for this transaction included Mark Cordes, Paul Holian, Robert Hornstein, and John Koehler.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