This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

NewStar Launches Equipment Finance Business

  • Launched mid-ticket leasing business to finance essential-use equipment for mid-sized companies  
  • Formed talented team of leasing industry veterans led by two seasoned executives  
  • Completed new $75 million credit facility with four-year term to fund new lease origination  
  • Part of strategy to continue building franchise of specialized commercial lending businesses  
  • Expected to be accretive to earnings per share in 2011

BOSTON, Jan. 26, 2011 (GLOBE NEWSWIRE) -- NewStar Financial Inc. (Nasdaq:NEWS) announced today that it has formed a team of leasing industry veterans to launch a new equipment finance division of the company and closed a new $75 million credit facility with Wells Fargo Bank, National Association to provide funding for new lease origination. Wells Fargo Securities acted as deal agent. 

NewStar expects to provide an attractive equipment financing alternative for established mid-sized companies that have been hurt by a reduction in the availability of credit from banks and independent lessors sidelined by the credit crisis. The company plans to finance essential-use equipment for mid-sized businesses nationwide. NewStar Equipment Finance will offer traditional direct finance leases with various end-of-term options to fund the purchase of a wide range of equipment types, including manufacturing, technology, healthcare, and telecom equipment. Targeted transaction sizes will range from $500 thousand to $3 million and the company will offer lease lines to meet customers' needs for planned capital expenditures.  The business will focus on companies with annual sales of at least $25 million across a broad array of industries, including business services, healthcare, telecommunications, financial services, education, retail and manufacturing.

NewStar formed an accomplished equipment finance team led by leasing industry veterans, Steve O'Leary and Dave O'Keefe.   The team includes a network of seven independent sales agents with an average of 25 years of experience, led by O'Keefe. They will operate under an agreement with NewStar to directly originate new leases that meet the company's return objectives and credit standards. They will target equipment finance opportunities with our existing borrowers, as well as other portfolio companies owned by private equity firms in addition to an established base of existing customers.   Steve O'Leary, who will lead the equipment finance team, has more than 25 years of experience in the origination, underwriting, syndication and management of equipment finance lease and loan portfolios. He was formerly at Eastern Bank where he founded and managed their middle market leasing business and served on the bank's management council and credit committee. Prior to that, he held various positions with AT&T Capital, Fleet Capital Leasing and Shawmut Bank.    

1 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs