Newtek Closes on
Sale of $75,426,000 of Unguaranteed SBA 7(a) Loan-Backed Notes
SUCCESS, N.Y., Dec. 06, 2017 (GLOBE NEWSWIRE) -- Newtek
Business Services Corp. ("Newtek")
(Nasdaq: NEWT), an internally managed business
development company ("BDC"), today announced that it closed on its
eighth and largest small business loan securitization, with the sale of $75,426,000
of Unguaranteed SBA 7(a) Loan-Backed Notes, Series 2017-1, consisting of $58,111,000
of Class A Notes and $17,315,000 Class B Notes
(collectively, the "Notes"), rated "A" and
"BBB-", respectively, by Standard and Poor's Financial Services
LLC. The Notes had a 79.50% advance rate, and were priced at an
average initial yield of 3.59% (Note Interest Rates will be floating rate)
across both classes.
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 Inc. acted as Sole
Book Running Manager and Capital
One Securities, Inc. acted as Co-Manager for the offering.
Sloane, Chairman, President and Chief Executive Officer of Newtek Business Services Corp. said, "We are
pleased to announce the closing of our largest securitization to date with
strong investor demand and some of the best economics in Newtek's
securitization history. This deal was backed by $94.875 million
in unguaranteed portions of SBA 7(a) loans made by NSBF. Importantly, we
received an approximate 3.25% improvement in the advance rate over our prior
securitization in November 2016, making this 79.5% advance rate
the highest advance rate of all our securitizations to date. In addition, we
achieved a 100 basis point reduction in the interest rate spread over LIBOR on
each Note class compared to our November 2016
securitization. With the SBA's approval of our largest securitization and
the previously announced increase in our Capital One revolving credit
facility to $100 million, we believe we are well positioned
to originate between $465 million and $485 million
of SBA 7(a) loans in 2018."
Mr. Sloane continued, "We want
to thank Deutsche Bank and Capital One for helping us bring this securitization
to market, and look forward to announcing future securitizations in 2018 as we
anticipate continued growth in our SBA 7(a) program in 2018 and beyond."
About Newtek Business Services Corp.
Business Services Corp., Your Business Solutions Company®, is an internally managed
BDC, which along with its controlled portfolio companies, provides a wide range
of business services and financial products under the Newtek®
brand to the small- and medium-sized business ("SMB")
market. Since 1999, Newtek has provided
state-of-the-art, cost-efficient products and services and efficient business
strategies to SMB accounts across all 50 states to help them grow their sales,
control their expenses and reduce their risk.
Newtek's and its
portfolio companies' products and services include: Business Lending, SBA Lending Solutions, Electronic Payment Processing, Technology Solutions (Cloud Computing, Data Backup, Storage and
Retrieval, IT Consulting), eCommerce, Accounts Receivable Financing & Inventory Financing, The Secure Gateway, The Newtek Advantage™,
Commercial and Personal Lines Insurance Solutions,
Web Services, and Payroll and Benefits Solutions.
Newtek® and Your
Business Solutions Company® are registered trademarks of Newtek Business Services Corp.
Note Regarding Forward Looking
This press release contains certain
forward-looking statements. Words such as "believes,"
"intends," "expects," "projects,"
"anticipates," "forecasts," "goal" and
"future" or similar expressions are intended to identify
forward-looking statements. All forward-looking statements involve a number of
risks and uncertainties that could cause actual results to differ materially
from the plans, intentions and expectations reflected in or suggested by the
forward-looking statements. Such risks and uncertainties include, among others,
intensified competition, operating problems and their impact on revenues and
profit margins, anticipated future business strategies and financial performance,
anticipated future number of customers, business prospects, legislative
developments and similar matters. Risk factors, cautionary statements and other
conditions, which could cause Newtek's actual results
to differ from management's current expectations, are contained in Newtek's filings with the Securities and Exchange
Commission and available through http://www.sec.gov/. Newtek
cautions you that forward-looking statements are not guarantees of future
performance and that actual results or developments may differ materially from
those projected or implied in these statements.
SOURCE: Newtek Business Services Corp.