NewStar Supports the Recapitalization of Mealey's Furniture Holdings, Inc. for Parallel Investment Partners
NewStar Provides $15 million in Senior Financing for Parallel Investment Partners
Boston, MA, November 5, 2007 NewStar Financial, Inc. (NASDAQ: NEWS), a Boston-based specialty finance company, announces that it has served as Administrative Agent and Sole Lender in connection with $15 million in senior financing provided to support the recapitalization of Mealey's Furniture Holdings, Inc. ("Mealey's"), a Parallel Investment Partners' ("Parallel") portfolio company. Parallel completed its acquisition of Mealey's in January 2007. Parallel, a Dallas-based private equity firm founded in 1999, specializes in recapitalization and buyout transactions for lower middle market companies, typically with revenues between $10 million and $100 million. Parallel currently has over $400 million of institutional private equity capital commitments. The principals of the firm have successfully completed over 25 private equity investments in middle market growth companies since 1992. Mealey's, founded in 1970 and headquartered in Bensalem, Pennsylvania, is a large format, full service furniture retailer serving the Southeastern Pennsylvania and Southern New Jersey area markets. Mealey's operates three retail locations, with a fourth under construction and scheduled to open in 2008, and an outlet in the Philadelphia metropolitan area. Mealey's stores are "destination stores" for furniture shoppers and have a reputation for offering an array of high quality furniture."Mealey's Furniture is a very well run company with a solid business plan going forward. Our credit facility is designed to provide funds for the expansion of the Mealey's brand in the Philadelphia metro area. We are pleased to be supporting Parallel Investment Partners' investment," said Bob Kosian, Managing Director at NewStar. NewStar's deal team included Bob Kosian, Bill Walsh, Tom Gillis, Kristen Abels and Chad Titcomb.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