By Cristal Cody
Tupelo, Miss., Sept. 14 – NewStar Financial, Inc. priced $397.81 million of notes due Aug. 25, 2027 in a middle-market collateralized loan obligation transaction that complies with European Union risk retention regulations, according to a source.
NewStar Commercial Loan Funding 2015-2 LLC sold $205 million of class A-1 senior secured floating-rate notes at Libor plus 200 basis points and $23 million of 3.46% class A-2 senior secured fixed-rate notes.
The CLO also priced $40 million of class B senior secured floating-rate notes at Libor plus 290 bps; $26.25 million of class C secured deferrable floating-rate notes at Libor plus 395 bps; $28.5 million of class D secured deferrable floating-rate notes at Libor plus 525 bps; $28.25 million of class E secured deferrable floating-rate notes at Libor plus 750 bps and $46.81 million of subordinated notes.
Wells Fargo Securities, LLC was the placement agent.
NewStar Financial will manage the CLO.
The non-call period on the CLO ends Aug. 25, 2017. The reinvestment period ends Aug. 25, 2019.
The transaction is backed primarily by small and medium enterprise senior secured loans, cash and eligible investments.
Proceeds from the deal will be used to purchase a $400 million portfolio of middle-market loans.
NewStar Financial has priced two CLOs year to date.
The Boston-based middle-market commercial lender priced three CLO transactions in 2014.
| Issuer: | NewStar Commercial Loan Funding 2015-2 LLC
|
| Amount: | $397.81 million
|
| Maturity: | Aug. 25, 2027
|
| Securities: | Fixed-rate, floating-rate and subordinated notes
|
| Structure: | Managed cash flow SME CLO
|
| Placement agent: | Wells Fargo Securities, LLC
|
| Manager: | NewStar Financial, Inc.
|
| Call feature: | Aug. 25, 2017
|
| Pricing date: | Sept. 3
|
| Settlement date: | Sept. 15
|
| Distribution: | Rule 144A
|
|
|
| Class A-1 notes
|
| Amount: | $205 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 200 bps
|
| Ratings: | Moody’s: Aaa
|
| Fitch: AAA
|
|
|
| Class A-2 notes
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| Amount: | $23 million
|
| Securities: | Senior secured fixed-rate notes
|
| Coupon: | 3.46%
|
| Ratings: | Moody’s: Aaa
|
| Fitch: AAA
|
|
|
| Class B notes
|
| Amount: | $40 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 290 bps
|
| Rating: | Moody’s: Aaa
|
|
|
| Class C notes
|
| Amount: | $26.25 million
|
| Securities: | Secured deferrable floating-rate notes
|
| Coupon: | Libor plus 395 bps
|
| Rating: | Moody’s: A2
|
|
|
| Class D notes
|
| Amount: | $28.5 million
|
| Securities: | Secured deferrable floating-rate notes
|
| Coupon: | Libor plus 525 bps
|
| Rating: | Moody’s: Baa3
|
|
|
| Class E notes
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| Amount: | $28.25 million
|
| Securities: | Secured deferrable floating-rate notes
|
| Coupon: | Libor plus 750 bps
|
| Rating: | Moody’s: Ba3
|
|
|
| Equity
|
| Amount: | $46.81 million
|
| Securities: | Subordinated notes
|
| Ratings: | Non-rated
|
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