NewStar Financial Leads $104,000,000 Senior Financing To International Logging, Inc.
NewStar Supports Acquisitions by Carlyle/Riverstone and Cherington Capital's Portfolio Company
Boston, MA, August 22, 2007 NewStar Financial, Inc. (NASDAQ: NEWS), a Boston-based specialty finance company, announces that it has provided a senior credit facility to support International Logging, Inc.'s ("ILI" or the "Company") acquisition of a division of Datalog Technology, Inc. ("DTI"), as well as Tooke Rockies Inc. ("Tooke"), Discovery Logging Inc. ("Discovery") and Synergic Petroleum Technologies, S.A. ("SPT"). DTI is a privately held company headquartered in Calgary, Canada and the acquisition of its Information Services division completes ILI's acquisition of DTI, which began with the acquisition of its mud logging assets in September 2006. The remaining acquisitions complement the Company's core mud logging business and expands its geographic presence. Tooke operates out of Casper, WY and Dickenson, ND; Discovery is based out of Midland, TX; and SPT is headquartered in Buenos Aires, Argentina.
ILI is owned by Carlyle/Riverstone Global Energy & Power Funds and Cherington Capital. Riverstone Holdings LLC and The Carlyle Group are the co-general partners of Carlyle/Riverstone Global Energy and Power Funds. Cherington Capital is a Boston-based private equity investment firm focused on recapitalizations and leveraged buyouts of middle market companies, with an emphasis on the energy industry. "This is the third transaction NewStar has led for ILI and the process was once again a pleasure," said Charles Cherington, managing partner of Cherington Capital. "NewStar's experience in the international energy sector makes this a valuable relationship for everyone involved."
NewStar served as Lead Arranger and Administrative Agent for the $104.0 million senior credit facilities comprised of a $15.0 million revolving credit facility, $47.0MM Term Loan A, $32.0MM Term Loan B, and $10.0MM Delayed-Draw Term Loan. NewStar was joined in the deal by five other lenders, including Citigroup Global Markets, Golub Capital, GSC Group, Global Leveraged Capital Management, and FirstLight Financial. This follow-on deal increases and refinances a $60.0 million deal led by NewStar in September to finance ILI's aforementioned acquisition of Datalog's mud logging assets.
"NewStar continues to be impressed with the performance of ILI and the quality and breadth of the management team they have in place," said Robert Kosian, Managing Director at NewStar. "We look forward to working with the Company as it continues to grow its business and expand its reputation as an industry leader."
ILI, founded in 1990 is headquartered in Houston, TX. ILI is the second-largest mud logging services company in the world with global operations including Africa, Asia, North American, South America and the Middle East. Mud logging is the process of gathering critical surface and down-hole information including hydrocarbon gas analysis, geopressure data analysis, geological evaluation and well status monitoring. As part of its services, ILI provides well site geologists, pressure specialists and a data transmission product that delivers real-time data from a well to its customers. ILI, which has a fleet of over 250 logging units and more than 1250 field geologists worldwide, provides services to major oil companies and national oil companies.
NewStar's deal team for this transaction includes Robert Kosian, Mark du Four, Keith Cox and Walter Marullo, with analyst support from John Koehler.
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 www.newstarfin.com
for more detailed transaction and contact information.
Anne G. Bork
Gaffney Bennett Public Relations