- Newtek Business Services ( NASDAQ: NEWT ) has priced its twelfth small business loan securitization, with the offering of $116.21M of Unguaranteed SBA 7(a) Loan-Backed Notes, Series 2022-1, consisting of $95.38M of Class A Notes and $20.83M Class B Notes with preliminary ratings of “A- (sf)” and “BBB- (sf)”, respectively, by S&P Global Ratings.
- 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.
- Barry Sloane, Chairman, President and Chief Executive Officer of Newtek Business Services Corp. said, “Upon the close of the securitization, we anticipate refinancing NSBF’s warehouse line and monetizing loans funded by equity to create approximately $29M 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. We believe we are appropriately match funded in both rising- and falling-rate environments, albeit with some lag and lead time in either interest-rate scenario. We would like to thank the many bond investors that have successfully invested in our rated securities, which supports our position as the second largest SBA 7(a) lender by dollar loan approval volume, including banks, and the largest non-bank SBA 7(a) lender overall.”
- The transaction is expected to close on or about September 7, 2022.
For further details see:
Newtek prices $116.2M of SBA 7(a) unguaranteed loan-backed notes series 2022-1