NewStar Business Credit, a wholly-owned subsidiary of NewStar Financial, Inc., announced it has provided a $13.5 million revolving credit facility to Asheboro Elastics Corp. (“AEC”).  Headquartered in Asheboro, NC, AEC is a privately-held manufacturer of narrow fabrics, including customized knitted, woven, rigid and elastic products, which are used in the apparel, automotive, home furnishings, medical, military, industrial and recreational industries. The credit facility will be used to support ongoing working capital needs, including investments in working capital related to a recent acquisition.

Larry Himes, AEC’s CEO commented, "NewStar has proven to be a thoughtful and collaborative partner for our company.  They worked diligently with us to complete a strategic, yet challenging, acquisition.  We look forward to working with NewStar as we grow our business."

“NewStar’s credit professionals were quick studies of our business and industry and that knowledge enabled us to establish a flexible funding structure.  We operate from multiple locations in North and Central America and their ability to work effectively across our business is critical to our growth plans,” added William Inabnit, AEC’s Senior Financial Officer.

NewStar Business Credit’s National Marketing Manager, Milt Iskra also commented on the transaction: “We are always excited to work with dynamic, family-owned companies like AEC.  Our capabilities proved to be a great match for their needs and we are happy to have structured a financing arrangement that provides ongoing working capital support in addition to funding for their recent acquisition.”

NewStar Business Credit provides asset-based and senior, secured “stretch” loans nationally to middle-market companies with credit requirements between $5 million and $25 million.  Deal structures are flexible and tailored to meet each client’s unique needs.  Funds can be used for a wide range of purposes, including strategic acquisitions, management buyouts, recapitalization and refinancing, as well as, to support internal growth strategies.