Fifth Balance Sheet Securitization
- Upsized deal from $300 million to $325 million due to strong investor interest
- Four classes of notes were issued to fifteen different investors
- Priced notes at par to yield a weighted average spread of approximately Libor plus 254 bps
- Achieved an advance rate of approximately 81%, placing approximately $263 million of notes rated AAA/Aaa through Baa2
- Retained notes rated Ba1 and B2 in addition to equity interests totaling approximately $62 million, or 19% of the capital structure
BOSTON, Dec. 19, 2012 (GLOBE NEWSWIRE) -- NewStar Financial Inc. (Nasdaq:NEWS), a specialized commercial finance company, announced today that it completed a $325 million term debt securitization known as NewStar Commercial Loan Funding 2012-2. All classes of notes were priced at par and the transaction was upsized from $300 million, reflecting broad participation among institutional investors.
NewStar Commercial Loan Funding 2012-2 is NewStar's fifth balance sheet securitization since inception and part of a programmatic approach to the company's funding strategy. The notes offered through this CLO transaction are backed by a diversified portfolio of commercial loans originated by NewStar. The transaction was executed through a private offering via Rule 144A and Regulation S. NewStar placed various classes of notes rated AAA/Aaa through Baa2 totaling approximately $263 million and will retain Ba1 and B2-rated notes in addition to the equity interests, which together represent 19% of the collateral pool, or approximately $62 million."Our ability to generate broad investor interest in this transaction underscores the strength of NewStar's track record and the value of our direct origination platform. The quality of the execution also reinforces our access to the capital markets and ability to expand and diversify our investor base," said NewStar CEO, Tim Conway. "Wells Fargo Securities did an outstanding job structuring and marketing the deal to drive the best execution."