newstar financial inc (NEWS) Key Developments
NewStar Financial Inc. Forms New Financing Subsidiary, Newstar Warehouse Funding I
May 12 15
NewStar Financial Inc. 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, N.A. The credit facility will be used to partially fund eligible loans originated by the company's Leveraged Finance group. The facility has a target advance rate of 70% and matures in May 2020. It is structured with a three-year revolving, reinvestment period and will amortize over the remaining two years. NewStar Financial will serve as originator and collateral manager.
NewStar Financial, Inc. Enters into the Loan and Servicing Agreement
May 11 15
On May 5, 2015, NewStar Financial Inc. entered into the Loan and Servicing Agreement by and among NewStar Warehouse Funding I LLC, as the borrower, the company, as the originator and the collateral manager, Citibank, N.A. as the administrative agent, U.S. Bank National Association, as the trustee and the custodian, and each of the lenders from time to time party to the Agreement, establishing a $175,000,000 revolving credit facility. Under the Credit Facility, the company may borrow to partially fund eligible loan origination. Advances under the Credit Facility may be drawn, repaid and drawn again, subject to availability under a borrowing base. The Credit Facility provides for a reinvestment period of three years, followed by an amortization period of two years. The Credit Facility matures on May 5, 2020.
NewStar Financial, Inc. Announces Unaudited Consolidated Earnings Results for the First Quarter Ended March 31, 2015
May 6 15
NewStar Financial, Inc. announced unaudited consolidated earnings results for the first quarter ended March 31, 2015. For the quarter, the company reported net interest income of $17,415,000 against $20,626,000 a year ago. Operating income before income taxes was $4,331,000 against $9,409,000 a year ago. Income before income taxes was $4,331,000 against $10,537,000 a year ago. Net income was $2,539,000 or $0.05 per basic and diluted share against $6,203,000 or $0.12 per diluted share a year ago. Return on average assets was 0.36% against 0.98% a year ago. Return on average equity was 1.57% against 4.05% a year ago. Book value per share as on March 31, 2015 was $14.26 against $12.76 a year ago. Despite a 12% increase in interest income in the first quarter, net interest income decreased to $17.4 million from $18.5 million in the prior quarter due to higher interest expense
driven by increased leverage and higher cost of funds resulting from the continuing amortization of low-cost CLO notes issued in 2007, as well as, the issuance of higher cost subordinated debt at the end of 2014.
NewStar Financial, Inc. Completes Offering of Senior Notes, Consisting of $300 Million Aggregate Principal Amount of 7.25% Senior Notes Due 2020
Apr 28 15
On April 22, 2015, NewStar Financial, Inc. completed its previously announced offering of senior notes, consisting of $300 million aggregate principal amount of its 7.25% Senior Notes due 2020 (the Notes). The offering resulted in net proceeds to the company of approximately $294.8 million, after deducting estimated costs and expenses associated with the offering, including the initial purchasers' discount and commissions. The Notes were sold within the United States to qualified institutional buyers in reliance on Rule 144A under the Securities Act of 1933, as amended (the Securities Act), and outside the United States to non-U.S. persons in reliance on Regulation S under the Securities Act. The Notes mature on May 1, 2020, and bear interest at a rate of 7.25% per annum, which is payable semi-annually on May 1 and November 1 of each year, beginning November 1, 2015. Interest will be computed on the basis of a 360-day year comprised of twelve 30-day months. The terms of the Indenture will, among other things, limit the company's ability to (i) incur or guarantee certain kinds of additional indebtedness and issue disqualified stock or preference shares of its subsidiaries; (ii) pay dividends or distributions, repurchase equity, prepay subordinated debt and make certain investments; (iii) enter into transactions with affiliates; (iv) incur liens on assets; (v) engage in a new or different business; or (vi) consolidate or merge with another person or sell or otherwise dispose of all or substantially all of its assets. The company may redeem up to 35% of the aggregate principal amount of the Notes, at any time and from time to time, at a price equal to 107.25% of the aggregate principal amount so redeemed, plus accrued and unpaid interest thereon, with the net cash proceeds of certain public equity offerings completed before May 1, 2017, provided that following the redemption, at least 65% of the Notes that were originally issued remain outstanding and any such redemption occurs within 180 days following the closing of any such public equity offering. At any time prior to May 1, 2017, the company may redeem some or all of the Notes at a price equal to 100% of the aggregate principal amount, plus accrued and unpaid interest thereon and a make-whole premium. On or after May 1, 2017, the company may redeem the Notes, in whole or in part, in cash at redemption prices specified in the Notes plus accrued and unpaid interest thereon. In addition, if the company undergoes a change of control, the company will be required to make an offer to purchase each holder's Notes at a price equal to 101% of the principal amount of the Notes, plus accrued and unpaid interest, up to but not including the repurchase date.
NewStar Financial, Inc. to Report Q1, 2015 Results on May 06, 2015
Apr 22 15
NewStar Financial, Inc. announced that they will report Q1, 2015 results at 9:00 AM, Eastern Standard Time on May 06, 2015