NewtekOne, Inc. Successfully Completes $71.875 Million Public Offering of 8.50% Senior Notes

On June 5, 2024, NewtekOne, Inc. NEWT, a publicly traded company, announced the successful completion of a significant registered public offering. The offering consisted of $71.875 million aggregate principal amount of 8.50% Fixed Rate Senior Notes, which are scheduled to mature in 2029. In a move that underscores investors' confidence in NewtekOne's credit and operational prospects, underwriters have taken full advantage of their option to purchase additional notes, solidifying the total amount raised in the offering.

Details of the Offering

The 8.50% Fixed Rate Senior Notes provided by NewtekOne were issued at par and are set to reach maturity in 2029. This type of financial instrument represents a loan from the investors to the issuer, NewtekOne in this case, which promises to pay fixed interest payments until the due date when the full principal amount must be repaid.

Strategic Financial Move

The successful completion of the offering represents a strategic move on the part of NewtekOne. By locking in a fixed interest rate of 8.50%, the company has effectively managed its future interest expense and capital structure. The interest rate environment and demand for such investment products played a key role in determining the interest rate level. The involved parties have not disclosed the specific allocation of the funds, but such financial endeavors typically support corporate growth, debt refinancing, or other business objectives.

finance, NewtekOne, seniornotes