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BOCA RATON, Fla. - NewtekOne, Inc. (NASDAQ:NEWT), a financial holding company with a market capitalization of $329 million, has successfully completed an exempt offering of $30 million in 8.375% notes due April 1, 2030. The private placement, involving eleven institutional accredited investors, was managed under a purchase agreement dated March 19, 2025, in compliance with Section 4(a)(2) of the Securities Act of 1933.
The unregistered notes, which cannot be offered or sold without registration or exemption, are expected to mature by 2030. NewtekOne anticipates a net gain of approximately $29.25 million after accounting for estimated offering expenses. With a strong current ratio of 35.64, indicating robust liquidity, the company plans to allocate these funds primarily to refinance existing debt, with any remainder to support general corporate activities, including enhancing the capital of Newtek Bank, National Association.
Keefe, Bruyette & Woods, Inc., and Raymond James & Associates, Inc. served as placement agents in this transaction.
In conjunction with this financial maneuver, Egan-Jones Ratings Company upgraded NewtekOne’s credit rating from "BBB+" to "A-". The upgrade covers the company and its outstanding senior unsecured notes, including those listed on Nasdaq: NEWTZ, NEWTI, NEWTG, and NEWTH. Egan-Jones cited the company’s robust shareholders equity to asset ratio, strong tier 1 capital ratio, and improved efficiency ratio as factors influencing the upgrade. An "A" category rating from Egan-Jones indicates a high level of creditworthiness and low sensitivity to changing credit conditions. According to InvestingPro analysis, the company appears slightly undervalued based on its Fair Value calculations, with additional metrics and insights available in the comprehensive Pro Research Report.
Barry Sloane, CEO and President of NewtekOne, expressed satisfaction with the upgraded rating, attributing it to the company’s solid earnings, well-capitalized balance sheet, and diverse product offerings and loan portfolio.
This news comes as NewtekOne continues to offer a broad range of business and financial solutions to independent business owners across the United States. The company’s suite of services includes banking, business lending, electronic payment processing, and insurance, among others. InvestingPro data shows the company maintains an attractive dividend yield of 6.08% and has consistently paid dividends for 10 consecutive years, while achieving impressive revenue growth of 24.93% over the last twelve months.
The information presented in this article is based on a press release statement.
In other recent news, NewtekOne, Inc. reported its fourth-quarter 2024 earnings, which exceeded market expectations. The company announced earnings per share (EPS) of $0.69, surpassing the forecasted $0.66, and reported a revenue of $75.37 million, well above the anticipated $68.14 million. This strong financial performance highlights NewtekOne’s successful transition to a bank holding company, enhancing its diversification efforts. Additionally, NewtekOne has appointed John O’Connor as the Chief Revenue Officer of its payment processing subsidiary, Newtek Merchant Solutions. O’Connor brings over three decades of experience in financial services, with a focus on integrating merchant processing services with NewtekOne’s broader offerings. The company anticipates a significant growth in business deposit accounts and average account deposit balances. Analyst feedback, such as from Piper Sandler, indicates a positive outlook, with NewtekOne’s strategic focus on expanding its loan portfolio and leveraging technology to drive growth. These developments reflect NewtekOne’s commitment to delivering comprehensive business and financial solutions.
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