NewtekOne launches exchange offer for 5.50% notes due 2026

BOCA RATON, Fla. - NewtekOne, Inc. (NASDAQ:NEWT) announced Monday the commencement of an exchange offer for its outstanding 5.50% Notes due 2026, allowing holders to swap them for newly issued 8.50% Fixed Rate Senior Notes due 2031.

The exchange will be on a one-to-one basis, with each $25 principal amount of old notes exchanged for the same principal amount of new notes. Holders of accepted notes will also receive cash payment for accrued and unpaid interest up to the settlement date.

Currently, $95 million in aggregate principal amount of the old notes remains outstanding. The new notes will mature on February 1, 2031, and carry an interest rate of 8.50% per annum, payable quarterly beginning February 1, 2026.

The company plans to list the new notes on Nasdaq within 30 days of settlement under the symbol "NEWTO." The exchange offer will expire on January 9, 2026, at 5:00 p.m. New York City time, unless extended or terminated earlier.

For the exchange to proceed, at least 10% of the aggregate principal amount of old notes must be validly tendered and not withdrawn. The company may waive certain conditions at its discretion.

According to the company, the purpose of the exchange offer is to provide existing noteholders an opportunity to continue holding NewtekOne senior notes beyond the approaching February 1, 2026 maturity of the old notes. Old notes not exchanged are expected to be repaid on their maturity date.

U.S. Bank Trust Company is serving as the exchange agent, Alliance Advisors as the information agent, and Lucid Capital Markets as the dealer manager for the offer.

The exchange offer is being made pursuant to a registration statement on Form S-4 filed with the Securities and Exchange Commission, according to the company’s press release statement.

In other recent news, NewtekOne, Inc. reported its third-quarter earnings for 2025, with an earnings per share (EPS) of $0.67, surpassing the forecast of $0.64. However, the company fell short on revenue expectations, reporting $74.94 million against the anticipated $78.31 million. Additionally, NewtekOne’s Board of Directors approved a twelve-month extension of its existing share repurchase program, allowing for the repurchase of up to 1,000,000 shares of its common stock. This decision provides the company with flexibility in managing its capital. In personnel news, NewtekOne appointed Justine Martin as Chief Revenue Officer of its subsidiary, Newtek Merchant Solutions. Martin brings over 30 years of experience in the payments processing industry, with a notable tenure at Bank of America’s Merchant Services division. These developments reflect NewtekOne’s ongoing strategic initiatives and leadership changes.

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