By Rebecca Melvin
New York, April 24 -NewStar Financial Inc. brought $348.4 million of notes due April 2025 in the NewStar Commercial Loan Funding 2014-1 LLC collateralized loan obligation transaction, which was upsized due to strong investor interest from $325 million, according to a release.
The CLO, which represents NewStar's eighth securitization, priced $202.5 million of class A senior secured floating-rate notes (rated Aaa) at Libor plus 180 basis points.
The blended pricing of the notes was Libor plus 232 bps.
NewStar Commercial Loan Funding 2014-1 LLC also priced $20 million of class B-1 senior secured floating-rate notes at Libor plus 260 bps; $13.3 million of class B-2 senior secured fixed-rate notes at 490 bps; $30.3 million of class C secured deferrable floating-rate notes at Libor plus 360 bps; and $23.5 million of class D senior deferrable floating-rate notes at Libor plus 475 bps.
NewStar retained all of the class E notes, class F notes and the equity, which totaled $58.9 million, or about 17% of the value of the collateral pool.
The $18.5 million of class E notes priced at Libor plus 600 bps, and the $14 million of class F notes priced at Libor plus 650 bps.
Wells Fargo Securities LLC was the placement agent.
NewStar Financial Inc. will manage the CLO.
The CLO has a four-year reinvestment period.
NewStar Financial is a Boston-based finance company.
| Issuer: | NewStar Commercial Loan Funding 2014-1 LLC
|
| Amount: | $348.4 million
|
| Maturity: | April 2025
|
| Securities: | Fixed and floating-rate notes
|
| Structure: | Cash-flow CLO
|
| Placement agent: | Wells Fargo Securities LLC
|
| Manager: | NewStar Financial Inc.
|
| Pricing date: | April 17
|
|
|
| Class A notes
|
| Amount: | $202.5 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 180 bps
|
| Rating: | Moody's: Aaa
|
|
|
| Class B-1 notes
|
| Amount: | $20 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 260 bps
|
| Rating: | Moody's: Aa2
|
|
|
| Class B-2 notes
|
| Amount: | $13.3 million
|
| Securities: | Senior secured fixed-rate notes
|
| Coupon: | 4.902%
|
| Ratings: | Aa2
|
|
|
| Class C notes
|
| Amount: | $30.3 million
|
| Securities: | Secured deferrable floating-rate notes
|
| Coupon: | Libor plus 360 bps
|
| Ratings: | A2
|
|
|
| Class D notes
|
| Amount: | $23.5 million
|
| Securities: | Secured deferrable floating-rate notes
|
| Coupon: | Libor plus 475 bps
|
| Ratings: | Baa3
|
|
|
| Class E notes
|
| Amount: | $18.5 million
|
| Securities: | Secured deferrable floating-rate notes
|
| Coupon: | Libor plus 600 bps
|
| Ratings: | Ba2
|
|
|
| Class F notes
|
| Amount: | $14 million
|
| Securities: | Secured deferrable floating-rate notes
|
| Coupon: | Libor plus 650 bps
|
| Ratings: | B2
|
|
|
| Equity tranche
|
| Amount: | $26.4 million
|
| Ratings: | Non-rated
|
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