NewtekOne establishes new Series B preferred stock and completes depositary share offering

Published 21/08/2025, 13:34
NewtekOne establishes new Series B preferred stock and completes depositary share offering

NewtekOne, Inc. (NASDAQ:NEWT), a financial company with a market capitalization of $316 million that has maintained dividend payments for 11 consecutive years, has established a new class of preferred stock and completed an offering of depositary shares, according to a press release statement based on a filing with the Securities and Exchange Commission. According to InvestingPro analysis, the company is currently trading below its Fair Value, with strong financial health indicators including a current ratio of 21.37x.

On Tuesday, the company filed Articles Supplementary with the Maryland State Department of Assessments and Taxation, amending its articles of incorporation to create the “8.500% Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock, Series B.” The Series B Preferred Stock has a par value of $0.02 per share and a liquidation preference of $1,000 per share, equal to $25.00 per depositary share. The total authorized number of shares for this series is 53,750.

The Series B Preferred Stock will rank senior to NewtekOne’s common stock and any other future capital stock that does not expressly state parity or seniority with the Series B Preferred Stock regarding dividend rights and rights upon liquidation. It will rank on parity with the company’s Series A Convertible Preferred Stock and any future parity stock.

Under the terms of the Series B Preferred Stock, NewtekOne’s ability to declare or pay dividends, or to redeem, purchase, or otherwise acquire stock ranking junior to or on parity with the Series B Preferred Stock—including Series A Preferred Stock—is restricted if the company has not declared and paid, or set aside, full dividends for the most recent dividend period.

The depositary shares, each representing a 1/40th interest in a share of the Series B Preferred Stock, were issued under a Deposit Agreement dated Wednesday among NewtekOne, Equiniti Trust Company, LLC, and the depositary receipt holders. The offering consisted of 2,000,000 depositary shares and was conducted pursuant to the company’s effective registration statement on Form S-3 and a prospectus supplement dated August 13, 2025.

Legal opinions regarding the issuance and sale of the preferred stock and depositary shares were provided by Michael A. Schwartz, Chief Legal Officer and Corporate Secretary, and Robert Fraley, Senior Counsel of NewtekOne.

NewtekOne’s common stock and various notes are traded on the Nasdaq Global Market under the symbols NEWT, NEWTZ, NEWTI, NEWTG, and NEWTH.

In other recent news, NewtekOne, Inc. reported its second-quarter 2025 financial results, highlighting a mixed performance. The company met earnings per share expectations with a reported $0.52, but revenue fell short at $70.2 million compared to the anticipated $73.88 million. In addition to its earnings report, NewtekOne announced a $50 million preferred stock offering through depositary shares. This offering involves 2,000,000 depositary shares, each representing a 1/40th interest in a share of its 8.500% Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock, Series B. Furthermore, NewtekOne expanded its credit facility with Capital One (NYSE:COF) to $100 million for its Alternative Loan Program loans. This expansion follows a similar increase in its Deutsche Bank (ETR:DBKGn) ALP facility earlier this year. Keefe, Bruyette & Woods, Inc. and Raymond (NSE:RYMD) James & Associates, Inc. are acting as representatives for the underwriters in the stock offering. These developments reflect the company’s ongoing strategic financial maneuvers.

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