NewStar offers $397.81 million of notes in middle-market 2015-2 CLO

By Cristal Cody

Tupelo, Miss., Sept. 2 – NewStar Financial, Inc. plans to price $397.81 million of notes and membership interests due 2027 in its second middle-market collateralized loan obligation deal of the year, according to a source.

The NewStar Commercial Loan Funding 2015-2 LLC offering includes $205 million of class A-1 floating-rate notes (//AAA); $23 million of class A-2 fixed-rate notes (//AAA); $40 million of class B floating-rate notes; $26.25 million of class C floating-rate notes; $28.5 million of class D floating-rate notes; $28.25 million of class E floating-rate notes and $46.81 million of membership interests.

Wells Fargo Securities, LLC is 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 transaction is backed primarily by 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 previously was in the primary market on March 11 with the $496.1 million NewStar Commercial Loan Funding 2015-1 LLC deal.

The Boston-based middle-market commercial lender priced three CLO transactions in 2014.

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