Simpson Thacher is representing NewStar Financial, Inc. (NASDAQ: NEWS) ("NewStar”), a commercial finance lender and investment manager specializing in direct lending to middle-market companies and management of broadly syndicated loans, in connection with its proposed sale to First Eagle Investment Management (“First Eagle”). NewStar stockholders will receive cash and contingent value rights to certain tax refunds expected to provide total consideration of $12.32 to $12.44 per share (or approximately $511–516 million in total).
In a related transaction, the Firm is advising NewStar in the proposed sale of its portfolio of investment assets, including approximately $2.4 billion of middle-market loans and other credit investments, to a newly formed investment fund sponsored by GSO Capital Partners LP, the global credit investment platform of Blackstone Group L.P.
NewStar is an internally managed, commercial finance company with $7.3 billion of assets managed across two complementary business lines — middle market direct lending and asset management. The company's direct lending activities are focused on meeting the complex financing needs of companies and private investors in the middle markets through specialized lending groups that offer a range of flexible debt financing options.
The transactions have been approved by NewStar’s and First Eagle’s boards of directors and are subject to approval of NewStar’s stockholders as well as other customary closing conditions, including certain consents with respect to NewStar’s existing funds.
The Simpson Thacher team includes Lee Meyerson, Ravi Purushotham, Michael Chao and William Hong (M&A); David Rubinsky, Jeannine McSweeney and Jake Phillips (ECEB); Morgan Otway (Tax); and Thomas Wuchenich (Funds).