NewStar Financial places $75 million revolving notes with Drawbridge

By Sara Rosenberg

New York, Jan. 5 - NewStar Financial Inc. closed on $75 million of senior secured revolving notes due June 30, 2013, according to a news release.

The revolving notes were placed with Drawbridge Special Opportunities, a fund managed by Fortress Investment Group.

Initial pricing is Libor plus 900 basis points and the unused fee ranges from 200 bps to 400 bps.

There is call protection of 103 in year one, 102 in year two and 101 in year three.

The maximum commitment of the notes will reduce by 20% after 18 months and then by 10% every three months until maturity. The company may choose to reduce the commitment amount by $25 million up to 12 months from closing, subject to a 50 bps penalty.

Proceeds are available for working capital and other general corporate purposes.

NewStar is a Boston-based specialized commercial finance company.

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