NewStar Financial preps $496.07 million middle-market CLO offering

By Cristal Cody

Tupelo, Miss., March 10 – NewStar Financial, Inc. plans to price a $496.07 million middle-market collateralized loan obligation, according to a source.

The NewStar Commercial Loan Funding 2015-1 LLC deal includes $253.5 million of class A-1 floating-rate notes (//AAA); $35 million of class A-2 floating-rate notes (//AAA); $50 million of class B floating-rate notes; $38.5 million of class C floating-rate notes; $33.25 million of class D floating-rate notes and $85.82 million of membership interests.

Wells Fargo Securities, LLC is the placement agent.

NewStar Financial will manage the CLO.

The CLO has a two-year non-call period and a four-year reinvestment period.

The notes are due in 2027.

The offering is backed primarily by senior secured loans, cash and eligible investments.

NewStar Financial intends to use the proceeds from the deal to purchase a $500 million portfolio of middle-market loans.

The Boston-based middle-market commercial lender brought three CLO deals in 2014.

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