NewStar Financial, a specialized commercial finance company, has closed a $150m secured credit facility through a financing subsidiary known as NewStar Commercial Funding 2012-1 LLC with an affiliate of Natixis Financial Products.

The proceeds will be used to refinance loan collateral previously funded in the company's 2009-1 CLO, as well as other facilities, and provide significant new lending capacity to support growing loan origination volume.

The credit facility is NewStar's fifth warehouse credit line and brings total warehouse borrowing capacity to $650m, which is expected to satisfy the company's short-term funding requirements for loan growth in 2012.

"This new credit facility brings our total current lending capacity to nearly $1bn and positions us to meet our growth objectives in 2012," said NewStar CEO Tim Conway. "The attractive terms of the financing reflect the quality of NewStar's credit performance and track record, as well as the strength of the company's origination capabilities across our specialized lending businesses. Natixis has been a valued partner for NewStar since our inception and we are excited to continue expanding that relationship with this deal," he added.

Companies mentioned in this article