By Cristal Cody
Tupelo, Miss., Dec. 23 – NewStar Financial, Inc. priced $407.5 million of notes in a middle market collateralized loan obligation offering, according to a market source.
NewStar Clarendon Fund CLO LLC sold $166.7 million of class A-1 floating-rate notes at Libor plus 185 basis points; $66.6 million of 1.7% class A-2 fixed-rate notes; $42.7 million of class B floating-rate notes at Libor plus 270 bps; $25.5 million of class C floating-rate notes at Libor plus 335 bps; $24.7 million of class D floating-rate notes at Libor plus 435 bps and $33.3 million of class E floating-rate notes at Libor plus 605 bps.
The deal included $9.6 million of class A subordinated notes and $38.4 million of class B subordinated notes as equity.
Citigroup Global Markets Inc. was the placement agent.
NewStar Financial will manage the CLO, which is backed primarily by small to middle enterprise loans.
NewStar Financial has priced three CLO deals over the year, including the $348.4 million NewStar Commercial Loan Funding 2014-1 LLC transaction in April and the $409.4 million NewStar Arlington Senior Loan Program LLC deal in June.
The middle market commercial lender is based in Boston.
| Issuer: | NewStar Clarendon Fund CLO LLC
|
| Amount: | $407.5 million
|
| Securities: | Fixed-rate, floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Placement agent: | Citigroup Global Markets Inc.
|
| Manager: | NewStar Financial, Inc.
|
| Pricing date: | Dec. 16
|
|
|
| Class A-1 notes
|
| Amount: | $166.7 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 185 bps
|
| Ratings: | Moody’s: Aaa expected
|
| Fitch: AAA expected
|
|
|
| Class A-2 notes
|
| Amount: | $66.6 million
|
| Securities: | Fixed-rate notes
|
| Coupon: | 1.7%
|
| Ratings: | Moody’s: Aaa expected
|
| Fitch: AAA expected
|
|
|
| Class B notes
|
| Amount: | $42.7 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 270 bps
|
| Rating: | Moody’s: Aa2 expected
|
|
|
| Class C notes
|
| Amount: | $25.5 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 335 bps
|
| Rating: | Moody’s: A2 expected
|
|
|
| Class D notes
|
| Amount: | $24.7 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 435 bps
|
| Rating: | Moody’s: Baa3 expected
|
|
|
| Class E notes
|
| Amount: | $33.3 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 605 bps
|
| Rating: | Moody’s: Ba3 expected
|
|
|
| Class A equity tranche
|
| Amount: | $9.6 million
|
| Securities: | Subordinated notes
|
| Ratings: | Non-rated
|
|
|
| Class B equity tranche
|
| Amount: | $38.4 million
|
| Securities: | Subordinated notes
|
| Ratings: | Non-rated
|
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