NewStar Financial announced that it amended an existing credit facility with Wells Fargo Bank, increasing the commitment amount by $100 million to $275 million with an accordion feature that provides for the facility to increase in size to $325 million, subject to certain conditions. The larger credit facility will be used to support continued loan growth.

The financing adds approximately $140 million of lending capacity and provides flexibility to fund a wider range of lending activity.

The amendment also increased the advance rates under the credit facility to 70%, up from advance rates ranging from 65% to 70% based on the type of loans pledged as collateral.

In addition to favorable changes in those key terms, pricing was also amended to reflect market conditions, lowering the cost of funds for advances secured by middle-market loans. The new deal amends an existing credit agreement with Wells Fargo that is used to fund new loan origination in the company’s Leveraged Finance group. The existing facility had an outstanding balance of $21 million as of September 30, 2013.

“This deal represents another step in our strategy to re-lever the balance sheet and support loan growth,” said Tim Conway, chairman and CEO. “We have originated nearly $1.2 billion of new loans over the last 12 months, which is our best performance since 2007 and is more reflective of the asset origination capabilities of our specialized lending platforms,” he added.

John Frishkopf, NewStar treasurer, added, “This deal helps create new lending capacity to support increasing loan growth and positions NewStar to continue as a programmatic issuer in the securitization markets. The Wells Fargo team continues to provide us exceptional value through a powerful combination of capital, market perspective and a relationship approach that brings it all together.”