Why The NewtekOne Stock Fell 0.7% (NEWT)

By Amit Chowdhry ● Jan 25, 2023
  • The stock price of NewtekOne (NEWT) fell by 0.7% in the most recent trading session. This is why.

The stock price of NewtekOne (NEWT) fell by 0.7% in the most recent trading session.

Why: NewtekOne announced that on January 23, 2023, the Company completed an exempt private offering of $50 million aggregate principal amount of its 8.125% notes due 2025. The Notes were issued to institutional accredited investors in a private placement.

The Notes will mature on February 1, 2025, will bear interest at a rate of 8.125% per year, and will be the company’s direct unsecured obligations and rank pari passu, or equal, with all outstanding and future unsecured unsubordinated indebtedness issued by the company.

KEY QUOTE:

“We are pleased that we continue to execute on our strategy after closing on the acquisition of the newly named Newtek Bank, N.A. The $50 million debt raise at the financial holding company will be primarily used for general corporate purposes and will help fuel the anticipated $600 million of non-conforming loan originations that ultimately find their way into securitizations. Despite increasing cost of financing, we anticipate being able to capitalize the Company by investing in our higher-returning lending opportunities and business processes, so that this capital can be accretive to our growth and earnings per share. This private placement of two-year notes fits our capital structure and we look forward to accessing the public markets in 2023 for equity, hybrid, and debt securities. We are pleased that we have been able to access the capital markets, even during turbulent times, and we believe that has been based upon our two-decade long history as a publicly traded company delivering results to the investment community. We are also pleased that Egan Jones recently issued an investment-grade rating for our existing and new corporate debt structures.”

— Barry Sloane, Chairman, President and Chief Executive Officer