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NewStar Capital Sponsors Seventh Loan Fund

September 22, 2016, 07:09 AM
Filed Under: Industry News

NewStar Financial, an internally-managed commercial finance company and asset manager, announced its liquid credit platform, NewStar Capital LLC (“NewStar Capital”), completed a $410 million broadly syndicated loan securitization known as Arch Street CLO (“Arch Street”).  Arch Street represents the second CLO issued by NewStar this year and its twentieth securitization since inception.

The notes were backed by a diversified portfolio of syndicated bank loans.  The transaction was executed through a private offering via Rule 144A and Regulation S.  Six classes of notes totaling approximately $370.3 million were placed.  The deal was structured to satisfy risk retention rules with NewStar providing risk retention capital.

"This transaction represents our second deal in 2016 and our seventh fund backed by broadly syndicated loans.  Importantly, it also reflects our continuing strategy to grow assets managed by our liquid credit platform as a key part of our asset management business,” said NewStar’s CEO, Tim Conway.

NewStar Capital LLC will serve as collateral manager of the CLO, which has a four-year reinvestment period.  The notes were rated by Moody’s Investors Service and Fitch.  All variable rate notes were priced to yield an initial weighted average of approximately Libor plus 2.4%.

Credit Suisse acted as placement agent in connection with the offering of the notes.

NewStar Financial, Inc. is an internally-managed, commercial finance company with $6.6 billion of assets managed across two complementary business lines – middle-market direct lending and asset management.

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