By Cristal Cody
Tupelo, Miss., Feb. 27 – NewStar Financial, Inc. sold $397.25 million of notes at par in a new middle-market collateralized loan obligation transaction, according to an informed source.
NewStar Commercial Loan Funding CLO 2017-1 LLC priced $207 million of class A-T notes at Libor plus 178 basis points and $25 million of class A-R notes at Libor plus 178 bps.
The CLO sold $40 million of class B notes at Libor plus 250 bps; $32 million of class C notes at Libor plus 350 bps; $24 million of class D notes at Libor plus 510 bps; $20 million of class E notes at Libor plus 775 bps and $49.25 million of notes as equity.
Natixis Securities Americas LLC arranged the offering.
NewStar Financial will manage the CLO, which is collateralized by small and medium enterprise loans.
The CLO has a two-year non-call period and a four-year reinvestment period.
Boston-based NewStar priced two middle-market CLO deals in 2016.
Issuer: | NewStar Commercial Loan Funding CLO 2017-1 LLC
|
Amount: | $397.25 million
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Securities: | Notes
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Structure: | Cash flow SME CLO
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Placement agent: | Natixis Securities Americas LLC
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Manager: | NewStar Financial, Inc.
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Pricing date: | Feb. 15
|
|
Class A-T notes
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Amount: | $207 million
|
Coupon: | Libor plus 178 bps
|
Price: | Par
|
Expected ratings: | Moody’s: Aaa
|
| S&P: AAA
|
|
Class A-R notes
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Amount: | $25 million
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Coupon: | Libor plus 178 bps
|
Price: | Par
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Expected ratings: | Moody’s: Aaa
|
| S&P: AAA
|
|
Class B notes
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Amount: | $40 million
|
Coupon: | Libor plus 250 bps
|
Price: | Par
|
Expected rating: | S&P: AA
|
|
Class C notes
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Amount: | $32 million
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Coupon: | Libor plus 350 bps
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Price: | Par
|
Expected rating: | S&P: A
|
|
Class D notes
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Amount: | $24 million
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Coupon: | Libor plus 510 bps
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Price: | Par
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Expected rating: | S&P: BBB-
|
|
Class E notes
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Amount: | $20 million
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Coupon: | Libor plus 775 bps
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Price: | Par
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Expected rating: | S&P: BB-
|
|
Equity
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Amount: | $49.25 million
|
Ratings: | Non-rated
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