NewStar Financial Supports a Leveraged Buyout by Sentinel Capital Partners
Sentinel Capital acquires a majority interest in Inscape Publishing.
Boston, MA, August 27, 2007 NewStar Financial, Inc. (NASDAQ: NEWS), a Boston-based specialty finance company, announces that it is Syndication Agent on a new $75.0 million financing to support the acquisition of Royston, LLC ("Royston") by Stephens Capital Partners ("Stephens").
Royston, headquartered in Jasper, GA, is the market-leading designer, manufacturer, and installer of customer-specific, high-quality checkout and convenience merchandising equipment for large convenience store, grocery, and mass merchandise retailers throughout the United States. Royston holds a sustainable differentiated position as the innovator and value leader in its marketplace through an intense customer focus, flexibility in design, short lead-time production capabilities, and sophisticated engineering and manufacturing operations. Stephens Capital Partners, the merchant banking affiliate of Stephens, Inc. founded in 1933, is based in Little Rock, Arkansas, specializing in buyouts, recapitalizations and growth capital investments.
"NewStar is excited about working with Royston and the exceptional team they have in place," said Mark du Four, Managing Director at NewStar. "Royston is the clear leader within their selected industries, led by a seasoned and experienced management team that prides itself on its long-term client relationships and high-quality products. Stephens Capital Partners is a well-known and knowledgeable sponsor, and we are very excited about supporting this transaction as it moves forward."Wachovia Capital Markets, LLC serves as the Lead Arranger on the $75.0 million financing, which is comprised of a $7.5 million revolving credit facility and a $67.5 million Term Loan. Madison Capital also joined in the financing as Documentation Agent.NewStar's deal team for this transaction includes Mark du Four, Scott Reeds and Pem Covington, 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