Neostellar Capital disclosed that a Magnetar affiliate invested $20 million through a redeemable promissory note bearing 6.5% annual interest, which is mandatorily redeemable into common stock upon a qualifying equity financing of at least $230 million. The financing was received after the second quarter ended, during which the company reported a net asset value of approximately $355.9 million, or $13.44 per share, down from $14.24 at the end of the first quarter. The NAV decline was driven by an $0.88 per share net investment loss that included roughly $20 million of accelerated, nonrecurring expenses tied to the externalization, along with a $0.29 per share decrease from partial conversions of the 6.5% convertible notes due 2029. Chairman and CEO Mark Klein said the transition to an externally managed structure became effective on July 15 with the launch of Neostellar Advisors, combining the team’s 15-year history with Magnetar’s institutional capabilities. On the call, Klein also indicated that portfolio company Whoop, which has become a large holding, intends to go public and could pursue an IPO sometime next year.
Neostellar Capital Corp.NAV decline and accelerated expenses from externalization
IPO intention mentioned as potential positive
Launch of external manager noted
