Street Calls of the Week
BOCA RATON - NewtekOne, Inc. (NASDAQ:NEWT) announced Tuesday that its wholly owned subsidiary, Newtek Merchant Solutions (NMS), has completed a refinancing of its debt facilities with Private Credit at Goldman Sachs Alternatives. The company, which InvestingPro data shows maintains a strong liquidity position with a current ratio of 21.37, has demonstrated robust revenue growth of 20.91% over the last twelve months.
The new financing package includes a $90 million term loan facility and a $5 million line of credit. NMS used part of the proceeds to fully repay approximately $30 million of outstanding term debt with another lender. The transaction also eliminated a $10 million undrawn line of credit with that lender.
According to the company, the additional funding will be used to fund loans to NewtekOne and may be allocated toward repaying and reducing outstanding unsecured senior debt, as well as for general corporate purposes.
Barry Sloane, NewtekOne’s Chairman, President, and Chief Executive Officer, noted that Goldman Sachs Alternatives was previously the primary debt provider to NMS and has "come full circle to once again support NMS and NewtekOne’s technology-enabled operating model."
NewtekOne describes itself as a financial holding company that provides business and financial solutions to independent business owners across the United States. The company offers various services including banking through Newtek Bank, N.A., business lending, electronic payment processing, accounts receivable financing, insurance solutions, and payroll services.
The information in this article is based on a company press release statement.
In other recent news, NewtekOne, Inc. has declared a quarterly cash dividend of $0.19 per share on its common stock, payable on October 24, 2025, to shareholders of record as of October 14, 2025. The company also announced an initial dividend of $9.44 per share on its Series B preferred stock, which translates to $0.2361 per depositary share, payable on October 1, 2025. Additionally, NewtekOne has eliminated its Series A Convertible Preferred Stock as a class of authorized stock, reclassifying them as unissued shares without designation. In a strategic move, NewtekOne established a new class of preferred stock, the 8.500% Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock, Series B, and completed an offering of depositary shares. The company has entered into an underwriting agreement for a $50 million public offering of these depositary shares, with Keefe, Bruyette & Woods, Inc. and Raymond James & Associates, Inc. acting as representatives for the underwriters. This offering involves 2,000,000 depositary shares, each representing a 1/40th interest in a share of Series B Preferred Stock. The underwriters have an option to purchase up to an additional 150,000 depositary shares.
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