NewtekOne expands Capital One credit facility to $100 million for ALP loans

Published 29/07/2025, 14:02
NewtekOne expands Capital One credit facility to $100 million for ALP loans

BOCA RATON, Fla. - NewtekOne, Inc. (NASDAQ:NEWT), a $311 million market cap financial holding company currently trading at an attractive P/E ratio of 6.07, announced Tuesday that its consolidated subsidiary, Newtek ALP Holdings, has amended its revolving credit facility with Capital One, N.A., increasing the facility from $60 million to $100 million and extending its maturity by two years. According to InvestingPro analysis, the company maintains strong liquidity with a current ratio of 31.49, suggesting robust financial flexibility for this expansion.

The expanded facility will be used to fund the origination of Alternative Loan Program (ALP) loans before they are placed into securitizations. This amendment follows a similar expansion of the company’s Deutsche Bank ALP facility in June. The company has demonstrated strong revenue growth of 23.06% over the last twelve months, and InvestingPro analysis suggests the stock is currently trading below its Fair Value, presenting a potential opportunity for investors. For detailed insights and additional ProTips about NewtekOne’s financial health and growth prospects, investors can access the comprehensive Pro Research Report available on InvestingPro.

The lending relationship between NewtekOne and Capital One spans nearly 15 years. Both Capital One Securities and Deutsche Bank have played roles in facilitating NewtekOne’s sixteen securitization transactions since 2010, according to the company. The company maintains a notable dividend yield of 6.43% and has maintained dividend payments for 11 consecutive years, demonstrating consistent shareholder returns alongside its established banking relationships.

"Capital One has been a great partner, helping NewtekOne to grow as a non-bank lender and subsequently as a financial holding company," said Barry Sloane, Chairman, President, and Chief Executive Officer of NewtekOne, in a press release statement.

Eric Shea, Senior Managing Director and Head of Structured Products at Capital One, and David Kucera, Senior Vice President and Head of Financial Institutions Group, noted that Capital One has provided lines of credit and capital market securitization expertise to NewtekOne throughout its history as a lender to independent business owners.

NewtekOne operates as a financial holding company providing business and financial solutions to independent business owners across all 50 states through its bank and non-bank subsidiaries.

In other recent news, Newtek Business Services Corp reported its second-quarter 2025 financial results. The company announced earnings per share of $0.52, aligning with analyst expectations. However, Newtek’s revenue for the quarter fell short, recording $70.2 million compared to the anticipated $73.88 million. Despite the revenue miss, Newtek’s stock price remained stable. These developments indicate a mixed financial performance for the company.

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