By Cristal Cody
Tupelo, Miss., March 16 – NewStar Financial, Inc. priced a $496.1 million middle-market collateralized loan obligation, according to a source.
NewStar Commercial Loan Funding 2015-1 LLC sold $253.5 million of class A-1 senior secured floating-rate notes at Libor plus 180 basis points; $35 million of class A-2 senior secured floating-rate notes at Libor plus 165 bps; $50 million of class B senior secured floating-rate notes at Libor plus 280 bps; $38.5 million of class C secured deferrable floating-rate notes at Libor plus 385 bps; $33.3 million of class D secured deferrable floating-rate notes at Libor plus 550 bps and $85.8 million of membership interests.
Wells Fargo Securities, LLC was 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 April 20, 2027.
The CLO 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.
| Issuer: | NewStar Commercial Loan Funding 2015-1 LLC
|
| Amount: | $496.1 million
|
| Maturity: | April 20, 2027
|
| Securities: | Floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Placement agent: | Wells Fargo Securities, LLC
|
| Manager: | NewStar Financial, Inc.
|
| Call feature: | Two years
|
| Pricing date: | March 11
|
| Settlement date: | March 20
|
| Distribution: | Rule 144A
|
|
|
| Class A-1 notes
|
| Amount: | $253.5 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 180 bps
|
| Ratings: | Moody’s: Aaa
|
| Fitch: AAA
|
|
|
| Class A-2 notes
|
| Amount: | $35 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 165 bps
|
| Ratings: | Moody’s: Aaa
|
| Fitch: AAA
|
|
|
| Class B notes
|
| Amount: | $50 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 280 bps
|
| Rating: | Moody’s: Aa2
|
|
|
| Class C notes
|
| Amount: | $38.5 million
|
| Securities: | Secured deferrable floating-rate notes
|
| Coupon: | Libor plus 385 bps
|
| Rating: | Moody’s: A2
|
|
|
| Class D notes
|
| Amount: | $33.3 million
|
| Securities: | Secured deferrable floating-rate notes
|
| Coupon: | Libor plus 550 bps
|
| Rating: | Moody’s: Baa3
|
|
|
| Equity
|
| Amount: | $85.8 million
|
| Securities: | Subordinated notes
|
| Rating: | Non-rated
|
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