By Cristal Cody
Tupelo, Miss., Feb. 17 – NewStar Financial, Inc. sold $348,006,000 of notes due Feb. 25, 2028 in a small-to-medium enterprise collateralized loan obligation transaction, according to a market source.
NewStar Commercial Loan Funding 2016-1 LLC priced $176.5 million of class A-1 senior secured floating-rate notes at Libor plus 230 basis points and $20 million of 3.44% class A-2 senior secured fixed-rate notes.
The CLO sold $36.75 million of class B senior secured floating-rate notes at Libor plus 375 bps; $22.5 million of class C secured deferrable floating-rate notes at Libor plus 540 bps; $23.75 million of class D secured deferrable floating-rate notes at Libor plus 550 bps; $23 million of class E secured deferrable floating-rate notes at Libor plus 750 bps and $45,506,000 of membership interests.
Wells Fargo Securities, LLC arranged the deal.
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 small- and medium-enterprise loans.
Proceeds from the deal will be used to purchase a $350 million portfolio of middle-market loans.
NewStar Financial, a Boston-based middle-market commercial lender, priced three CLO transactions in 2015.
| Issuer: | NewStar Commercial Loan Funding 2016-1 LLC
|
| Amount: | $348,006,000
|
| Maturity: | Feb. 25, 2028
|
| Securities: | Fixed-rate and floating-rate notes and membership interests
|
| Structure: | Cash flow CLO
|
| Placement agent: | Wells Fargo Securities, LLC
|
| Manager: | NewStar Financial, Inc.
|
| Call feature: | Two years
|
| Settlement date: | March 2
|
| Distribution: | Rule 144A
|
|
|
| Class A-1 notes
|
| Amount: | $176.5 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 230 bps
|
| Ratings: | Moody’s: Aaa
|
| Fitch: AAA
|
|
|
| Class A-2 notes
|
| Amount: | $20 million
|
| Securities: | Senior secured fixed-rate notes
|
| Coupon: | 3.44%
|
| Ratings: | Moody’s: Aaa
|
| Fitch: AAA
|
|
|
| Class B notes
|
| Amount: | $36.75 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 375 bps
|
| Rating: | Moody’s: Aa2
|
|
|
| Class C notes
|
| Amount: | $22.5 million
|
| Securities: | Secured deferrable floating-rate notes
|
| Coupon: | Libor plus 540 bps
|
| Rating: | Moody’s: A2
|
|
|
| Class D notes
|
| Amount: | $23.75 million
|
| Securities: | Secured deferrable floating-rate notes
|
| Coupon: | Libor plus 550 bps
|
| Rating: | Moody’s: Baa3
|
|
|
| Class E notes
|
| Amount: | $23 million
|
| Securities: | Secured deferrable floating-rate notes
|
| Coupon: | Libor plus 750 bps
|
| Rating: | Moody’s: Ba3
|
|
|
| Equity
|
| Amount: | $45,506,000
|
| Securities: | Membership interests
|
| Ratings: | Non-rated
|
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