NewStar Financial, Inc. (NASDAQ:NEWS) Files An 8-K Entry into a Material Definitive Agreement

NewStar Financial, Inc. (NASDAQ:NEWS) Files An 8-K Entry into a Material Definitive Agreement

Item 1.01 Entry into a Material Definitive Agreement.

On March 20, 2017, NewStar Financial, Inc. (the Company)
completed a $397.3 million term debt securitization. This
securitization was a refinancing of the NewStar Commercial Loan
Funding 2013-1 LLC $400.0 million term debt securitization
completed on September 11, 2013. The notes offered in the
collateralized loan obligation (the Replacement Notes) were
issued by NewStar Commercial Loan Funding 2017-1 LLC, a
subsidiary of the Company (NCLF), and are backed by a diversified
portfolio of commercial loans originated and serviced by the
Company. Investors purchased approximately $328.0 million of the
floating-rate, asset-backed Replacement Notes, representing
approximately 82.6% of the value of the collateral pool. The
Company retained the Class E-N Replacement Notes and all of the
equity which together totaled $69.3 million, representing
approximately 17.4% of the collateral pool.The blended pricing of
the Replacement Notes was LIBOR plus 2.28%. The reinvestment
period is expected to end in March 2019 and the Replacement Notes
are expected to mature in March 2027.

The amount, LIBOR spread and assumed weighted average life of the
offered Replacement Notes are:

In connection with the refinancing of the term debt
securitization, the Company, as collateral manager, entered into
an Amended and Restated Collateral Management Agreement dated as
of March 20, 2017, with NCLF as Issuer. In addition, NCLF entered
into a Second Supplemental Indenture to the Indenture dated as of
September 11, 2013, with U.S. Bank National Association as
trustee. The Company, as transferor, previously entered into a
Master Loan Sale Agreement, dated as of September 11, 2013 with
NCLF as issuer and NewStar Commercial Loan Depositor 2013-1 LLC,
a subsidiary of the Company, as retention holder. NewStar
Commercial Loan Depositor 2013-1 LLC was renamed NewStar
Commercial Loan Depositor 2017-1 LLC in connection with the
refinancing of the notes.

The Amended and Restated Collateral Management Agreement, the
Indenture and the Master Loan Sale Agreement require the Company
and NCLF to comply with various covenants and contain events of
default and collateral manager termination events, which are
subject to certain materiality thresholds and grace and cure
periods customary for securitizations of this type. The Amended
and Restated Collateral Management Agreement and the Second
Supplemental Indenture are filed with this report as Exhibits
10.1 and 4.1, respectively, and the foregoing descriptions of
these documents do not purport to be complete and are qualified
in their entirety by the full text set forth in those exhibits,
which are incorporated herein by this reference.

Within the United States, the Replacement Notes were only sold to
qualified institutional buyers in reliance on Rule 144A under the
Securities Act of 1933, as amended (the Securities Act). The
Replacement Notes have not been registered under the Securities
Act or any state securities laws, and, unless so registered, the
Replacement Notes may not be offered or sold in the United States
or to U.S. persons except to an exemption from the registration
requirements of the Securities Act and applicable state
securities laws.

Item 2.03 Creation of a Direct Financial Obligation or an
Obligation under an Off-Balance Sheet Arrangement of a
Registrant.

The information set forth in Item 1.01 of this Current Report on
Form 8K is incorporated herein by reference.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.

About NewStar Financial, Inc. (NASDAQ:NEWS)
NewStar Financial, Inc. (NewStar) is a commercial finance company with specialized lending platforms focused on meeting the financing needs of companies and private investors in the middle market. The Company and its wholly owned investment management subsidiary, NewStar Capital LLC, are registered investment advisors and provide asset management services to institutional investors. The Company manages various private credit funds that co-invest in loan origination through its leveraged finance lending platform. Through its wholly owned subsidiary, the Company also manages a series of funds structured as collateralized loan obligations (CLOs) that invest primarily in broadly syndicated loans, as well as other sponsored funds and managed accounts that invest across various asset classes, including broadly syndicated loans, high yield bonds and distressed credits. The Company’s loan portfolio includes loans, leases and other debt products. NewStar Financial, Inc. (NASDAQ:NEWS) Recent Trading Information
NewStar Financial, Inc. (NASDAQ:NEWS) closed its last trading session up +0.49 at 10.61 with 111,207 shares trading hands.