NewStar Increases Corporate Debt Financing To $100 Million
BOSTON, Sept. 7, 2010 (GLOBE NEWSWIRE) -- NewStar Financial Inc. (Nasdaq:NEWS), a specialized commercial finance company, announced today that it has amended its senior secured notes with an affiliate of Fortress Investment Group.
Originally issued to provide contingent liquidity, the notes have been increased and restructured to be used for both growth capital and liquidity needs.
Key terms of the note agreement have been amended to, among other things:
- Increase the size to $100 million from $75 million, consisting of $50 million of revolving notes and $50 million of delayed draw term notes
- Extend the maturity to August 31, 2014 from July 5, 2013 and eliminate scheduled commitment reductions
- Reduce borrowing costs to Libor plus 7% from a range of Libor plus 9% to 12%
- Improve advance rates in the borrowing base for certain key collateral types
- Establish a discrete pool of collateral to secure the notes, providing better flexibility to complete additional financings secured by separate pools of collateral
- Allow for prepayment of the term notes subject to a "make-whole" premium for the first two years followed by prepayment fees of 2% and 1% for years three and four, respectively.
- Allow the term notes to be drawn at or before November 29, 2010
CONTACT: NewStar Financial, Inc. Corporate Inquiries: Colleen M. Banse 617.848.2502 firstname.lastname@example.org Brian J. Fischesser 617.848.2512 email@example.com
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