NewStar Provides $27 million in Senior Financing for Dexter Magnetic Technologies, Inc.
NewStar Financial, Inc. (NASDAQ: NEWS), a Boston-based specialty finance company, announces that it has provided $27 million in senior financing to Dexter Magnetic Technologies, Inc. (“Dexter Magnetic” or the “Company”). The proceeds of the senior financing were used to refinance existing senior debt and provide a partial recapitalization to Levine Leichtman Capital Partners (“LLCP”) and the management of the Company. LLCP completed its acquisition of Dexter Magnetic in July 2007.
Dexter Magnetic is a world leader in providing comprehensive magnetic solutions including the design, engineering and manufacturing of complex magnetic circuits, permanent magnets, magnetic assemblies, electromagnetic systems, as well as finished products serving specific market needs. Dexter Magnetic broadens its product offerings through its global distributorship and custom modification of soft magnetics and accessories. The Company is based in Elk Grove, IL and has offices in Hicksville, NY, Berkshire, United Kingdom, and Nanjing, China.
Levine Leichtman Capital Partners, a Beverly Hills, California-based private investment firm, manages in excess of $2.0 billion of institutional investment capital through private equity partnerships. LLCP has a highly differentiated, multi-fund investment strategy focused on companies with revenues of up to $500 million. LLCP is currently making new investments through Levine Leichtman Capital Partners III, L.P., Levine Leichtman Capital Partners Deep Value Fund, L.P., and LLCP California Growth Fund, L.P. LLCP also has offices in New York, Dallas, and Chicago.
“NewStar was a true value-added partner throughout this process,” commented Lauren Leichtman, Co-Founder and CEO of Levine Leichtman Capital Partners. “We were impressed by NewStar’s expertise and timely execution of the financing. Despite recent activity in the credit markets, NewStar delivered on the terms they initially indicated to us. We look forward to doing business with them in the future.”
“Dexter is a leader in the development of highly engineered magnetic solutions and NewStar is excited to be backing Pete Peltier, the president of Dexter and his management team,” said Jeremy Back, Managing Director at NewStar. “We also look forward to continuing to build our relationship with Levine Leichtman.”
NewStar’s deal team included Jeremy Back, Keith Cox and Bill Latham, with analyst support from Nicole Gain and Geoff Rhizor.
About NewStar Financial, Inc.
NewStar Financial is a specialized commercial finance company focused principally on meeting the complex financing needs of customers in the middle market through our corporate, commercial real estate, and structured products groups. Our senior banking teams call directly on customers to provide advice and finance a range of strategic transactions that may require some combination of senior secured, second lien and mezzanine financing. NewStar typically works with customers with financing needs of up to $150 million and cash flow as low as $5 million. We target ‘hold’ positions of up to $35 million, but may also underwrite or arrange transactions up to $100 million for syndications to other lenders.
We are headquartered in Boston MA, with regional offices in Darien CT, Chicago IL, San Francisco CA, San Diego CA, and Charleston SC. In December of 2006, NewStar completed an Initial Public Offering. The Company’s shares trade on the NASDAQ under the ticker symbol, NEWS. Please visit our website at www.newstarfin.com for more detailed transaction and contact information.