NewStar Financial, Inc. entered into the second amended and restated note agreement, by and among the company, the holders party thereto and Fortress Credit Corp., as administrative agent, which amended and restated in its entirety the amended and restated note agreement by and among the company, the holders party thereto and Fortress dated August 31, 2010 as amended by the first amendment to amended and restated note agreement dated as of January 27, 2012, the consent and second amendment to amended and restated note agreement dated as of November 5, 2012 and the third amendment to amended and restated note agreement dated as of December 4, 2012. The second note agreement increases the size of the existing term loan facility to $200,000,000 from $100,000,000, terminates the existing $25,000,000 revolving credit facility, reduces the interest rate of the term loan facility as described below, and extends the maturity date as described below. Prior to the date of the second note agreement $100,000,000 of the $200,000,000 term loan facility had been funded. Therefore, the second note agreement establishes $100,000,000 of additional unfunded term loan commitments under the facility. The company borrowed an additional $70,000,000 under the term loan facility. The initial funding and the existing funding accrues interest at the London Interbank Offer Rate (LIBOR) plus 4.50% with an interest rate floor of 1.00% and has a maturity date of May 11, 2018. The second note agreement provides for two subsequent borrowings under the term loan facility (the Delayed Draw Term A and the Delayed Draw Term B). The company expects to borrow $5,000,000 under the Delayed Draw Term A by August 12, 2013. The Delay Draw Term A accrues interest at LIBOR plus 4.50% with an interest rate floor of 1.00% and has a maturity date of May 11, 2018. The company expects to borrow $25,000,000 under the Delayed Draw Term B by August 12, 2013. The Delay Draw Term B accrues interest at LIBOR plus 3.750% with an interest rate floor of 1.00% and has a maturity date of May 12, 2017. The term loan facility may be prepaid, subject to a prepayment fee of 1.00% which is payable in the case of certain voluntary or involuntary prepayments made on or prior to May 13, 2014. The obligations of the company under the second note agreement are guaranteed by certain subsidiaries of the company, and are secured by liens on substantially all of the assets of the company and its subsidiary, NewStar Loan Funding, LLC. The second note agreement also requires the company to comply with various financial and other covenants, and contains events of default (subject to certain materiality thresholds and grace and cure periods) customary for transactions of this type.

NewStar Financial, Inc. announced unaudited consolidated financial results for the first quarter ended March 31, 2013. For the quarter, the company reported net interest income of $20.953 million against $24.016 million a quarter ago. Income before income taxes was $10.427 million against $10.343 million a quarter ago. Net income was $6.154 million or $0.12 per diluted share against $6.212 million or $0.12 per diluted share a quarter ago. Return on average assets was 1.18% against 1.17% a quarter ago. Return on average equity was 4.17% against 4.18% a quarter ago. Book value per share as on March 31, 2013 was $12.19 against $12.06 a quarter ago.

NewStar Financial, Inc., Q1 2013 Earnings Call, May 01, 2013