NEWSTAR FINANCIAL, INC. (NEWS, Financial) filed Annual Report for the period ended 2010-12-31.
Newstar Financial Inc. has a market cap of $549.6 million; its shares were traded at around $10.82 with a P/E ratio of 54.1 and P/S ratio of 4.2. Hedge Fund Gurus that owns NEWS: Jim Simons of Renaissance Technologies LLC.
On November 1, 2010, we acquired Core Business Credit, LLC, an asset-based lender located in Dallas, Texas with outstanding loans totaling $73.4 million as of October 31, 2010, and its wholly-owned subsidiaries (Core) for a purchase price of $25.3 million. We recognized a gain of $5.6 million in connection with the acquisition. In conjunction with the acquisition, we became a party to an existing $225 million revolving credit facility with DZ Bank AG Deutsche Zentral-Genossenschaftsbank Frankfurt for financing asset-based loans.
Our Leveraged Finance group provides senior secured, and to a lesser extent, senior subordinated, second lien, mezzanine and subordinated debt, and equity and other equity-linked products to companies with annual EBITDA typically between $5 million and $50 million, the proceeds of which are primarily used for acquisition financing, growth and working capital, recapitalization and other purposes. Our Leveraged Finance group also originates senior debt for larger middle market companies with assets generally between $25 million and $250 million, primarily to fund asset growth.
As of December 31, 2010, our Leveraged Finance loan portfolio totaled $1.6 billion in funding commitments and $1.4 billion in balances outstanding, representing 80.0% of our loan portfolio. This represented 164 transactions with an average balance outstanding of approximately $8.5 million. During 2010, we originated $348.5 million of Leveraged Finance loans. Additionally, we originated $197.7 million for the NCOF during 2010.
As of December 31, 2010 our Real Estate loan portfolio totaled $301.6 million in funding commitments and $282.6 million in balances outstanding, representing 16.2% of our loan portfolio. This represented 28 transactions with an average balance outstanding of approximately $10.1 million. During 2010, we did not originate any new commercial real estate loans. Funding new commercial real estate loans through the capital markets remained difficult in 2010, but we expect to originate new commercial real estate loans as market conditions improve. As of December 31, 2010, we had the ability to syndicate to the NCOF an additional $52.1 million of commercial real estate loans.
NewStar Business Credit targets potential asset-based lending transactions in the middle market to borrowers with sales typically between $25 million and $500 million. Our asset-based loans typically range in size from $5 million to $25 million. We also have the ability to arrange significantly larger transactions that we may syndicate to others.
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Newstar Financial Inc. has a market cap of $549.6 million; its shares were traded at around $10.82 with a P/E ratio of 54.1 and P/S ratio of 4.2. Hedge Fund Gurus that owns NEWS: Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations:
We manage the NCOF, which has the opportunity to invest in loans and other debt products originated or acquired by us. The NCOF raised $150.0 million of equity from third-party institutional investors and had a $400.0 million committed credit facility. As of December 31, 2010, the NCOFs and NCOF CLO IIs (defined below) loan portfolio had total funding commitments and balances outstanding of approximately $476.2 million and $451.9 million, respectively. Our managed loan portfolio, which includes our loan portfolio and the loan portfolio of the NCOF, totaled approximately $2.5 billion of commitments and $2.2 billion of balances outstanding as of December 31, 2010.On November 1, 2010, we acquired Core Business Credit, LLC, an asset-based lender located in Dallas, Texas with outstanding loans totaling $73.4 million as of October 31, 2010, and its wholly-owned subsidiaries (Core) for a purchase price of $25.3 million. We recognized a gain of $5.6 million in connection with the acquisition. In conjunction with the acquisition, we became a party to an existing $225 million revolving credit facility with DZ Bank AG Deutsche Zentral-Genossenschaftsbank Frankfurt for financing asset-based loans.
Our Leveraged Finance group provides senior secured, and to a lesser extent, senior subordinated, second lien, mezzanine and subordinated debt, and equity and other equity-linked products to companies with annual EBITDA typically between $5 million and $50 million, the proceeds of which are primarily used for acquisition financing, growth and working capital, recapitalization and other purposes. Our Leveraged Finance group also originates senior debt for larger middle market companies with assets generally between $25 million and $250 million, primarily to fund asset growth.
As of December 31, 2010, our Leveraged Finance loan portfolio totaled $1.6 billion in funding commitments and $1.4 billion in balances outstanding, representing 80.0% of our loan portfolio. This represented 164 transactions with an average balance outstanding of approximately $8.5 million. During 2010, we originated $348.5 million of Leveraged Finance loans. Additionally, we originated $197.7 million for the NCOF during 2010.
As of December 31, 2010 our Real Estate loan portfolio totaled $301.6 million in funding commitments and $282.6 million in balances outstanding, representing 16.2% of our loan portfolio. This represented 28 transactions with an average balance outstanding of approximately $10.1 million. During 2010, we did not originate any new commercial real estate loans. Funding new commercial real estate loans through the capital markets remained difficult in 2010, but we expect to originate new commercial real estate loans as market conditions improve. As of December 31, 2010, we had the ability to syndicate to the NCOF an additional $52.1 million of commercial real estate loans.
NewStar Business Credit targets potential asset-based lending transactions in the middle market to borrowers with sales typically between $25 million and $500 million. Our asset-based loans typically range in size from $5 million to $25 million. We also have the ability to arrange significantly larger transactions that we may syndicate to others.
Read the The complete Report
