GSO gets commitments for $1.85 billion revolver to buy NewStar assets

By Sarah Lizee

Olympia, Wash., Oct. 17 – First Eagle Investment Management said that GSO Capital Partners obtained a commitment letter for an up to $1.85 billion asset-based revolving credit facility led by Wells Fargo Bank, NA to acquire the assets of NewStar Financial Management Inc., according to a press release.

First Eagle Investment Management announced its agreement to acquire NewStar. In connection with the transaction, NewStar agreed to sell a portfolio of investment assets, including roughly $2.4 billion of middle-market loans and other credit investments, to a newly formed investment fund sponsored by GSO.

The closing of First Eagle’s acquisition of NewStar is conditioned upon, among other things, GSO’s completion of the acquisition of the assets.

At closing, NewStar will enter into a servicing agreement with GSO, under which NewStar’s current investment team will continue to service the portfolio of assets sold to the investment fund.

First Eagle is a privately-owned investment management firm with headquarters in New York. New York-based GSO is the credit investment arm of Blackstone Group LP. NewStar is a commercial finance company and is based in Boston.

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