By Cristal Cody
Tupelo, Miss., June 6 – NewStar Financial, Inc. priced a $409,417,000 middle market collateralized loan obligation transaction, according to sources.
NewStar Arlington Senior Loan Program LLC sold $193.5 million of class A-1 senior secured floating-rate notes (Aaa//) at Libor plus 175 basis points and $40 million of class A-2 senior secured floating-rate notes (Aaa//) at Libor plus 153 bps, which step up to Libor plus 198 bps after 24 months.
NewStar also priced $32.75 million of class B-1 senior secured floating-rate notes (Aa2//) at Libor plus 260 bps; $5 million of 4.7% class B-2 senior secured fixed-rate notes (Aa2//); $28.5 million of class C-1 deferrable floating-rate notes (A2//) at Libor plus 330 bps; $5 million of 5.9% class C-2 deferrable fixed-rate notes (A2//); 28 million of class D deferrable floating-rate notes (Baa3//) at Libor plus 425 bps; $27 million of class E deferrable floating-rate notes (Ba3//) at Libor plus 610 bps and $9 million of class F deferrable floating-rate notes (B2//) at Libor plus 625 bps.
The deal included $40,667,000 of subordinated notes in the equity tranche.
Wells Fargo Securities, LLC was the placement agent.
NewStar Financial will manage the CLO, which is backed primarily by small to middle enterprise loans.
The notes are due July 25, 2025.
The CLO has a two-year non-call period and a four-year reinvestment period.
NewStar Financial was last in the market in April with the $348.4 million NewStar Commercial Loan Funding 2014-1 LLC transaction. The firm has brought a total of nine securitization deals.
The middle market commercial lender is based in Boston.
| Issuer: | NewStar Arlington Senior Loan Program LLC
|
| Amount: | $409,417,000
|
| Maturity: | July 25, 2025
|
| Securities: | Fixed-rate, floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Placement agent: | Wells Fargo Securities, LLC
|
| Manager: | NewStar Financial, Inc.
|
| Call feature: | 2016
|
| Pricing date: | June 5
|
| Settlement date: | June 26
|
| Distribution: | Private placement
|
|
|
|
|
| Class A-1 notes
|
| Amount: | $193.5 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 175 bps
|
| Ratings: | Moody’s: Aaa
|
|
|
| Class A-2 notes
|
| Amount: | $40 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 153 bps
|
| Ratings: | Moody’s: Aaa
|
|
|
| Class B-1 notes
|
| Amount: | $32.75 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 260 bps
|
| Ratings: | Moody’s: Aa2
|
|
|
| Class B-2 notes
|
| Amount: | $5 million
|
| Securities: | Senior secured fixed-rate notes
|
| Coupon: | 4.7%
|
| Ratings: | Moody’s: Aa2
|
|
|
| Class C-1 notes
|
| Amount: | $28.5 million
|
| Securities: | Deferrable floating-rate notes
|
| Coupon: | Libor plus 330 bps
|
| Ratings: | Moody’s: A2
|
|
|
| Class C-2 notes
|
| Amount: | $5 million
|
| Securities: | Deferrable fixed-rate notes
|
| Coupon: | 5.9%
|
| Ratings: | Moody’s: A2
|
|
|
| Class D notes
|
| Amount: | $28 million
|
| Securities: | Deferrable floating-rate notes
|
| Coupon: | Libor plus 425 bps
|
| Ratings: | Moody’s: Baa3
|
|
|
| Class E notes
|
| Amount: | $27 million
|
| Securities: | Deferrable floating-rate notes
|
| Coupon: | Libor plus 610 bps
|
| Ratings: | Moody’s: Ba3
|
|
|
| Class F notes
|
| Amount: | $9 million
|
| Securities: | Deferrable floating-rate notes
|
| Coupon: | Libor plus 625 bps
|
| Ratings: | Moody’s: B2
|
|
|
| Equity tranche
|
| Amount: | $40,667,000
|
| Securities: | Subordinated notes
|
| Ratings: | Non-rated
|
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