NewStar Financial served as lead arranger and administrative agent for senior credit facilities provided to World Insurance, a specialty insurance broker focused on mid-sized businesses and high net worth individuals.
Fitch Ratings placed NewStar Financial’s Long-Term and Short-Term Issuer Default Ratings ‘BB-‘ and ‘B’, respectively, on rating watch evolving following the announcement that First Eagle Investment Management is acquiring NewStar.
NewStar Financial will add $726 million of managed assets through the acquisition of Fifth Street’s middle market CLP management business. The purchase price is approximately $16 million.
NewStar reported 2016 net income of $28.2 million was up from $16.9 million a year earlier aided by $29.2 million in gains on the sale of its asset-based lending and equipment finance businesses.
John Frishkopf will retire from NewStar on September 30, 2016. Frishkopf was a founding member of the firm and has served as treasurer and head of the Asset Management group since NewStar’s inception in 2004.
NewStar Financial reported year-to-date net income of $9.25 million was up 22.7% compared to $7.54 million a year earlier. The company noted a $22.5 million gain on the sale of its ABL business earlier in the year.
NewStar Financial has been named 2015 Lender of the Year by Mergers & Acquisitions , an independent digital news service and monthly magazine covering all aspects of deal-making in the middle market.
NewStar Business Credit hired Arthur A. Pesavento as a senior vice president in its Chicago office. Pesavento has more than 20 years of experience in debt financing for middle market firms.
NewStar Financial announced that it has formed a new financing subsidiary, NewStar Warehouse Funding I, which has entered into a $175 million revolving warehouse financing arrangement with Citibank.
NewStar Financial reported Q1/15 net income of $2.5 million was down from $6.2 million a year earlier. The company noted net interest income after provision charges of $10.4 million was down from $14.8 million in Q1/14.