Business
Newtek Prices its 12th S&P-Rated Loan Securitization of $116.2 Million of SBA 7(a) Unguaranteed Loan-Backed Notes Series 2022-1
BOCA RATON, Fla., Aug. 23, 2022 (GLOBE NEWSWIRE) -- Newtek Business Services Corp., (NASDAQ: NEWT), an internally managed business development company
About this update from Newtekone, Inc.
[{"type":"text","content":"BOCA RATON, Fla., Aug. 23, 2022 (GLOBE NEWSWIRE) -- Newtek Business Services Corp., (NASDAQ: NEWT), an internally managed business development company (“BDC”), today announced that it has priced its twelfth small business loan securitization, with the offering of $116,210,000 of Unguaranteed SBA 7(a) Loan-Backed Notes, Series 2022-1, consisting of $95,380,000 of Class A Notes and $20,830,000 Class B Notes (collectively, the “Notes”), with preliminary ratings of “A- (sf)” and “BBB- (sf)”, respectively, by S&P Global Ratings (“S&P”). The Notes have an anticipated 79.5% advance rate. The Class A Notes were priced at 280 basis points over 30-day Average Compounded SOFR, and the Class B Notes were priced at 375 basis points over 30-day Average Compounded SOFR (Note interest rates are floating rate and adjust monthly). The Notes are collateralized by the right to receive payments and other recoveries attributable to the unguaranteed portions of SBA 7(a) loans made by Newtek Small Business Finance, LLC (\"NSBF\") pursuant to Section 7(a) of the Small Business Act, and overcollateralized by NSBF's participation interest in the unguaranteed portions. Deutsche Bank Securities and Capital One Securities acted as joint book running managers for the transaction. Barry Sloane, Chairman, President and Chief Executive Officer of Newtek Business Services Corp. said, “We could not be more pleased with the reception that Newtek received on its thirteenth rated securitization, and its twelfth issuance of structured notes rated by S&P Global Ratings. This securitization received strong investor demand from 13 institutional investors, including global money managers, sovereign wealth funds and asset managers who have a trillion dollars under management, and became oversubscribed in just 48 hours of marketing. We would like to thank Deutsche Bank and Capital One Securities, which were the joint book running managers on this transaction, which is expected to close on or about September 7, 2022.” Mr. Sloane continued, “Upon the close of the securitization, we anticipate refinancing NSBF’s warehouse line and monetizing loans funded by equity to create approximately $29 million in new cash flow, not including the prefunding account in the securitization. Our SBA 7(a) loans are all floating rate issued at Prime plus 275 basis points and adjust quarterly. W...