NewtekOne, Inc. Successfully Closes Offering
In a significant financial maneuver, NewtekOne, Inc. has successfully closed an offering of 2,000,000 depositary shares. Each of these shares represents a 1/40th interest in the company's newly established 8.500% Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock, Series B. This offering has generated approximately $48.357 million in net proceeds for the company, marking a robust step in strengthening its capital base.
Financial Details of the Offering
The Series B Preferred Stock, priced with a liquidation preference of $1,000 per share (equivalent to $25.00 per Depositary Share), allows NewtekOne to offer a non-cumulative 8.500% per annum cash dividend. This dividend is payable quarterly, contingent upon declaration by the company’s board of directors. Initial payments are scheduled to start on October 1, 2025, extending through October 1, 2030. Thereafter, the dividend rate will be reset based on the five-year US Treasury rate, providing flexibility aligned with market conditions.
Utilization of Net Proceeds
The net proceeds from this offering are targeted for funding investments, repaying existing debt obligations, and supporting general corporate purposes. This strategic allocation is anticipated to enable NewtekOne to effectively manage its financial leverage and enhance its service offerings.
Market Plans and Stock Symbol
In a bid to further bolster their market presence, NewtekOne plans to list the deposited shares on the Nasdaq Global Market under the ticker symbol "NEWTP." This strategic move is expected to increase visibility and access for investors looking into the growing financial solutions sector.
Management’s Perspective
Barry Sloane, the Chief Executive Officer and President of NewtekOne, expressed satisfaction regarding this latest move. He highlighted the positive outcome, indicating that as of June 30, 2025, the new preferred equity would elevate the tier one capital ratio from 16.1% to an impressive 19.2%. He also noted the growth of tier one capital from $256 million to $305 million, emphasizing the importance of this offering in strengthening the company's financial foundation.
Company Background
NewtekOne, Inc. operates as a financial holding company offering a diverse range of solutions under the Newtek brand. Established in 1999, the company has been dedicated to providing innovative, efficient, cost-effective products and services aimed at helping independent business owners succeed. With a commitment to reducing expenses and risk while enhancing growth opportunities, NewtekOne has made significant impacts across various sectors nationwide.
Comprehensive Financial Solutions
The company provides comprehensive business and financial solutions, including banking services through Newtek Bank, business lending, insurance solutions, and electronic payment processing. Additionally, they offer technology solutions such as cloud computing, data backup, and IT consulting, making them a versatile partner for business owners.
Contact Information
For further inquiries, investors can reach out to Bryce Rowe in Investor Relations at NewtekOne by telephone at (212) 273-8292 or via email at browe@newtekone.com.
Frequently Asked Questions
What was the purpose of NewtekOne's recent offering?
The recent offering aimed to generate capital for investments, debt repayment, and general corporate purposes.
What is the dividend rate for the new Series B preferred stock?
The new Series B preferred stock offers a non-cumulative dividend of 8.500% per annum, payable quarterly.
When will the first dividends be paid?
The first dividends will be paid on October 1, 2025, upon declaration by the board of directors.
How does this offering affect NewtekOne's capital?
The offering is expected to increase the tier one capital ratio from 16.1% to 19.2%, bolstering financial stability.
Under which ticker will the new depositary shares be listed?
The new depositary shares will be listed under the ticker symbol "NEWTP" on the Nasdaq Global Market.
