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
|
| Securities: | Notes
|
| Structure: | Cash flow SME CLO
|
| Placement agent: | Natixis Securities Americas LLC
|
| Manager: | NewStar Financial, Inc.
|
| Pricing date: | Feb. 15
|
|
|
| Class A-T notes
|
| Amount: | $207 million
|
| Coupon: | Libor plus 178 bps
|
| Price: | Par
|
| Expected ratings: | Moody’s: Aaa
|
| S&P: AAA
|
|
|
| Class A-R notes
|
| Amount: | $25 million
|
| Coupon: | Libor plus 178 bps
|
| Price: | Par
|
| Expected ratings: | Moody’s: Aaa
|
| S&P: AAA
|
|
|
| Class B notes
|
| Amount: | $40 million
|
| Coupon: | Libor plus 250 bps
|
| Price: | Par
|
| Expected rating: | S&P: AA
|
|
|
| Class C notes
|
| Amount: | $32 million
|
| Coupon: | Libor plus 350 bps
|
| Price: | Par
|
| Expected rating: | S&P: A
|
|
|
| Class D notes
|
| Amount: | $24 million
|
| Coupon: | Libor plus 510 bps
|
| Price: | Par
|
| Expected rating: | S&P: BBB-
|
|
|
| Class E notes
|
| Amount: | $20 million
|
| Coupon: | Libor plus 775 bps
|
| Price: | Par
|
| Expected rating: | S&P: BB-
|
|
|
| Equity
|
| Amount: | $49.25 million
|
| Ratings: | Non-rated
|
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