its 7th and Largest S&P-Rated Small Business Loan Securitization
Nov. 15, 2016 (GLOBE NEWSWIRE) -- Newtek
Business Services Corp. ("Newtek")
(NASDAQ:NEWT), an internally managed business development company
("BDC"), today announced that it has completed its seventh and
largest small business loan securitization. The securitization resulted
in the issuance and sale of $43,632,000 of Class A Notes and $9,812,000
Class B Notes, rated "A" and "BBB+",
respectively, by Standard and Poor's Financial Services LLC (the
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 sale of the Notes and
placed the Notes with five institutional investors, two of whom were new to Newtek's securitization program. The
Notes were priced and sold to investors at an average initial yield of 3.77%
(Note Interest Rate will be floating rate) across both classes and had a 76.25%
advance rate for both classes of S&P-rated Notes.
Sloane, Chairman, President and Chief Executive Officer of Newtek Business Services Corp. said, "We are
excited to have worked with Deutsche Bank and Capital One on our seventh and
largest small business loan securitization to date. This is the first
time we issued a securitization with two classes of S&P rated Notes.
Moreover, in this securitization we received the highest advance rate of all
our securitizations to date of 76.25% of the face value for the underlying
collateral. Our yield to investors, across both classes of Notes, of 3.77%
for non-recourse term-financed match-funded floating-rate debt is significantly
below our cost of funding for a baby bond issuance or other debt financing, and
we are able to retain the unguaranteed portions of these SBA 7(a) Loans on our
balance sheet. We look forward to additional securitization transactions
in 2017 and are excited about our approach to financing our nationwide loan
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 over 100,000 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), eCommerce, Accounts Receivable Financing & Inventory Financing, The Secure Gateway, The Newtek Advantage™,
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," 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/.
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.