NewStar Financial Announces Termination of Agreement to Acquire Southern Commerce Bank, N.A.
BOSTON, Aug. 19, 2009 (GLOBE NEWSWIRE) -- NewStar Financial, Inc. (Nasdaq:NEWS) announced today that it has terminated its agreement to acquire Southern Commerce Bank, N.A. and withdrawn its related regulatory applications.
"We have decided to terminate the agreement because it has become unlikely that we would receive approval of our applications on terms that would allow the company to achieve its objectives, which relied on our ability to restructure the combined company's balance sheet," said Timothy J. Conway, NewStar's Chief Executive Officer.
"Although we have decided to terminate the proposed acquisition of Southern Commerce Bank, acquiring and developing a commercial banking platform remains an attractive strategic opportunity for the company. We expect to continue to consider alternative approaches to acquiring a commercial bank that advance the company's business goals and meet the policy objectives of federal banking regulators," Conway said.
"In addition to depository-based strategy options, NewStar continues to pursue other alternatives to finance the company's operations and manage its core business with a focus on maximizing liquidity, managing the company's credit portfolio and taking appropriate steps to protect the balance sheet. We remain focused on monetizing the Company's investments in its loan portfolio, while also expanding the Company's asset management business," Conway added.
About NewStar Financial, Inc.:
NewStar Financial (Nasdaq:NEWS) is a specialized commercial finance company focused on meeting the complex financing needs of companies and private investors in the middle markets. The Company specializes in providing senior secured debt financing for the acquisition or recapitalization of mid-sized companies and commercial real estate. NewStar originates loans directly through a team of experienced, senior bankers organized around key industry and market segments. The Company targets 'hold' positions of up to $20 million and selectively underwrites or arranges larger transactions for syndication to other lenders. NewStar is headquartered in Boston MA and has regional offices in Darien CT, Chicago IL, and Charleston SC. For more detailed transaction and contact information, please visit our website at www.newstarfin.com.
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CONTACT: NewStar Financial
Colleen M. Banse
Brian J. Fischesser
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