New Issue: NewStar prices $125 million private placement of stock

By LLuvia Mares

New York, Nov. 13 - NewStar Financial, Inc. announced Tuesday it plans to raise a $125 million private placement of stock.

The company will sell a total of 12.5 million shares at $10.00 per share, representing a premium of 10.4% to Monday's closing price of $9.06. The shares will be sold in a two-part transaction.

The first tranche for 7.25 million shares is expected to close Nov. 29. The second tranche for 5.25 million shares is still awaiting shareholder approval, which is expected in January.

Investors include Corsair Capital, Union Square Partners, Och-Ziff Capital Management, Swiss Re and SAB Capital.

Citi is the placement agent.

Boston-based NewStar is a specialty finance company.

Issuer: NewStar Financial, Inc.

Issue: Stock

Amount: $125 million

Shares: 12.5 million

Price: $10.00

Warrants: No

Investors: Corsair Capital, Union Square Partners, Och-Ziff Capital Management, Swiss Re and SAB Capital

Placing agent: Citi

Announcement date: Nov. 13

Closing date: Nov. 29 for the first tranche of 7.25 million shares

Stock symbol: Nasdaq: NEWS

Stock price: $9.06 at close Nov. 12

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