NewStar Financial Serves as Sole Senior Lender for RFE Investment Partners' Acquisition of Metal Systems, Inc.
Boston, MA, June 26, 2007 NewStar Financial, Inc., a Boston-based specialty finance company announces that it has provided senior financing to support RFE Investment Partners' ("RFE") acquisition of Metal Systems, Inc. ("MSI" or the "Company"). MSI, headquartered in Chattanooga, TN is the leading provider of custom metal enclosures and operating centers that protect low, medium and high voltage electrical equipment (switchgear, motor control drives, generators etc) as well as operating personnel from noise, weather and other atmospheric determents that may endanger personnel and ruin equipment.MSI has manufacturing plants located in Chattanooga, TN and Houston, TX. In addition, to manufacturing and design capabilities, each location is responsible for populating the enclosures with the desired electrical equipment. This turn-key service offers significant value to its OEM partners and ultimate end users, dramatically simplifying the project management related to this phase of a construction project. NewStar served as sole lender and administrative agent for the senior credit facilities. RFE, based in New Canaan, CT, is a leading private equity firm focused on enhancing the growth of middle market companies in the service, manufacturing and healthcare service businesses."NewStar quickly understood the Company and was able to deliver on what was originally proposed," commented Peter Reiter, Managing Director at RFE. "We were impressed by NewStar's flexibility and timely execution of the financing. We look forward to doing business with them in the future"."From the very start of this deal, we worked closely with Peter and our partners at RFE to quickly understand this unique business and achieve a successful transaction for RFE and the talented management team of Metal Systems," said Ernie Panos, Managing Director at NewStar. "NewStar is excited to support RFE and Metal Systems as the business expands". The deal team for this transaction from NewStar included Ernie Panos, Christopher Koenig, Walter Marullo and Jeffrey Augustyn.
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