NewtekOne, Inc. Closes Offering of $75.0 Million of 8.625% Fixed Rate Senior Notes Due 2029
BY GlobeNewswire | CORPORATE | 09/16/24 12:44 PM EDTBOCA RATON, Fla., Sept. 16, 2024 (GLOBE NEWSWIRE) -- NewtekOne, Inc.
The Notes are expected to be listed on the Nasdaq Global Market? under the trading symbol ?NEWTH,? within thirty days. The Company intends to use the proceeds from the sale of the Notes for funding of investments, repayment of existing debt and general corporate purposes. Morgan Stanley & Co. LLC acted as lead book-running manager along with Keefe, Bruyette & Woods, Inc., Raymond James & Associates, Inc, and UBS Securities LLC. as joint book-running managers for the Offering.
Barry Sloane, President, Chairman and CEO commented, ?We are very pleased to have worked with Morgan Stanley as lead book-running manager on this Offering. The underwriting group also was bolstered by the efforts of UBS, Keefe Bruyette & Woods, and Raymond James. We are extremely appreciative of the relationship that we have with these underwriters and their distribution systems. The proceeds of the Offering will be used for general working capital purposes, repayment of existing debt and funding of investments, including, importantly, the continued funding of our extremely profitable alternative loan program business, which is financed at our holding company. We therefore anticipate that this long-term capital will support our goals of generating higher rates of return and high returns on average assets, as well as returns on tangible common equity. We are excited about our upcoming third quarter 2024 earnings release in early November as we have recently confirmed our 2024 annual earnings per share guidance of $1.85 to $2.05 per basic and diluted common share.?
Barry Sloane continued, ?One important use of our corporate liquidity will be to retire securitization debt as our outstanding securitizations of unguaranteed portions of SBA 7(a) loans reach their clean up calls. We anticipate that in the near term, we will be able to retire approximately $22 million of securitization debt and free up cash flow and liquidity. For example, the 2018-1 and 2019-1 SBA 7(a) securitizations contain approximately $68 million of accruing loans as of August 31, 2024, and approximately $15 million of non-accruing loans at fair value, which are in liquidation. It is important to note that in the month of August, the 2018-1 and 2019-1 securitization note holders received approximately $3 million of principal and interest payments. Once we call these securitization notes, the cash flows from these loans can flow through to the Company. In addition, as the non-accrual loans are liquidated (as they are currently marked at $15 million of fair value) over approximately a 6?24-month period of time, those cash flows can also accrue to the benefit of the Company. We are excited to make announcements like this to continue to demonstrate the over two-decade long capability of our management team and our ability to generate above-market rates of return managing our technology enabled business and financial solutions organization.?
About NewtekOne, Inc.
NewtekOne
NewtekOne?s and its subsidiaries? business and financial solutions include: banking (Newtek Bank, N.A.), Business Lending, SBA Lending Solutions, Electronic Payment Processing, Technology Solutions (Cloud Computing, Data Backup, Storage and Retrieval, IT Consulting), eCommerce, Accounts Receivable Financing & Inventory Financing, Insurance Solutions, Web Services, and Payroll and Benefits Solutions.
Newtek?, NewtekOne
Note Regarding Forward-Looking Statements
Certain statements in this press release are ?forward-looking statements? within the meaning of the rules and regulations of the Private Securities Litigation and Reform Act of 1995. These statements are based on management?s current expectations and are subject to uncertainty and changes in circumstances. These statements are not guarantees of future results or occurrences and are subject to change, possibly materially. See ?Note Regarding Forward-Looking Statements? and the sections entitled ?Risk Factors? in the NewtekOne?s filings with the Securities and Exchange Commission which are available on NewtekOne's
SOURCE: NewtekOne, Inc.
Investor Relations & Public Relations
Contact: Jayne Cavuoto
Telephone: (212) 273-8179 / jcavuoto@newtekone.com
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Source: NewtekOne, Inc.