Wells Fargo Securities Agents NewStar Loan Program Expansion
NewStar Financial announced that it increased the size of the NewStar Arlington Senior Loan Program to $400 million and completed a term debt securitization to provide leverage for the program. The Arlington Fund was formed in partnership with institutional investors in April 2013 to co-invest in middle market commercial loans originated by NewStar.
The expansion of the program represents the next step in the growth of NewStar’s asset management platform and is expected to add to its assets under management as the proceeds from the transaction are invested. The Program also provides important strategic benefits to NewStar, including increasing its lending capacity, which allows it to provide more capital to clients, while managing risk exposure.
NewStar completed a $400 million loan securitization in connection with the expansion of the program as part of its investment strategy to employ leverage in order to magnify returns to investors. The Arlington Senior Loan Program is NewStar’s ninth securitization since inception and part of a programmatic approach to the company’s funding and asset management strategies.
Wells Fargo Securities was placement agent and sole bookrunner.
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