NewStar Financial Inc posted a narrower-than-expected quarterly loss and said it extended a credit capacity with Citigroup to November 2010, sending its shares up as much as 20 percent. The stock is reacting positively because the company was able to renew its warehouse line of credit and due to encouraging comments by NewStar regarding its ability to access debt-capital markets, analyst David Long of William Blair & Co said.

Last Trade: 3.38
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About NewStar Financial, Inc.

NewStar Financial, Inc. (NewStar) is a commercial finance company that provides debt financing solutions to middle-market businesses and commercial real estate borrowers. NewStar principally focus on the direct origination of loans that meet its risk and return parameters. The Company has two lending groups: Middle Market Corporate and Commercial Real Estate. The Middle Market Corporate group originates, structures and underwrites senior debt, second lien, mezzanine and subordinated debt, and equity and equity-linked products for companies with annual earning before interest, tax, depreciation, and amortization (EBITDA) between $5 million and $50 million. The Commercial Real Estate group originates, structures and underwrites first mortgage debt, and subordinated debt, to finance acquisitions of real estate properties valued between $10 million and $50 million.