By Cristal Cody
Tupelo, Miss., July 23 – NewStar Financial, Inc. sold $245.25 million of notes due Jan. 20, 2027 in a refinancing of a middle-market collateralized loan obligation transaction, according to a market source and a notice of executed second supplemental indenture on Monday.
NewStar Exeter Fund CLO Ltd. deal was previously issued Feb. 19, 2015 by Fifth Street CLO Management LLC under the CLO vehicle, Fifth Street Senior Loan Fund I LLC.
NewStar Exeter Fund CLO priced $172.5 million of class A-R senior secured floating-rate notes at Libor plus 118 basis points, $28 million of class B-R senior secured floating-rate notes at Libor plus 165 bps, $23 million of class C-R secured deferrable floating-rate notes at Libor plus 275 bps and $21.75 million of D-R secured deferrable floating-rate notes at Libor plus 390 bps.
Wells Fargo Securities LLC arranged the offering.
NewStar Financial will manage the CLO.
The original $309.45 million CLO sold $172.5 million of class A floating-rate notes at Libor plus 200 bps; $28 million of class B floating-rate notes at Libor plus 300 bps; $11 million of class C-1 deferrable floating-rate notes at Libor plus 375 bps; $12 million of 6.113% class C-2 deferrable fixed-rate notes; $11.75 million of class D-1 deferrable floating-rate notes at Libor plus 510 bps; $10 million of class D-2 deferrable floating-rate notes at Libor plus 600 bps; $18 million of class E deferrable floating-rate notes at Libor plus 720 bps; $12 million of class F deferrable floating-rate notes at Libor plus 750 bps and $34.2 million of subordinated notes.
Proceeds were used to redeem the original notes.
The deal is collateralized by small and medium enterprise loans.
Boston-based NewStar acquired the Fifth Street CLO Management firm in 2017.
| Issuer: | NewStar Exeter Fund CLO Ltd.
|
| Amount: | $245.25 million refinancing
|
| Securities: | Floating-rate notes
|
| Maturity: | Jan. 20, 2027
|
| Structure: | Cash flow SME CLO
|
| Refinancing agent: | Wells Fargo Securities LLC
|
| Manager: | NewStar Financial, Inc.
|
| Call feature: | July 20, 2019
|
| Settlement date: | July 20
|
|
|
| Class A-R notes
|
| Amount: | $172.5 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 118 bps
|
| Ratings: | Moody’s: Aaa
|
| S&P: AAA
|
|
|
| Class B-R notes
|
| Amount: | $28 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 165 bps
|
| Rating: | Moody’s: Aa2
|
|
|
| Class C-R notes
|
| Amount: | $23 million
|
| Securities: | Secured deferrable floating-rate notes
|
| Coupon: | Libor plus 275 bps
|
| Rating: | Moody’s: A2
|
|
|
| Class D-R notes
|
| Amount: | $21.75 million
|
| Securities: | Secured deferrable floating-rate notes
|
| Coupon: | Libor plus 390 bps
|
| Ratings: | Moody’s: Baa3
|
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