NewtekOne, Inc., a commercial banking company, announced the issuance of $75 million in senior notes on Monday, with an underwriting agreement involving major financial institutions. The 8.62% Fixed Rate Senior Notes are due in 2029 and were underwritten by Morgan Stanley & Co. LLC, Keefe, Bruyette & Woods, Inc., Raymond James & Associates, Inc., and UBS Securities LLC.
The company, also known by its trading symbol NASDAQ:NEWT, has further granted the underwriters an option to purchase up to an additional $11.25 million in notes. This strategic financial move could potentially bring the total issuance to $86.25 million if the option is fully exercised.
The underwriting agreement, detailed in the exhibit filed with the report, outlines the terms of the issuance and sale of the notes. NewtekOne's decision to enter into this agreement aligns with its financial strategies and provides investors with new opportunities to invest in the company's debt instruments.
This announcement follows NewtekOne's recent efforts to expand its financial portfolio and comes as a significant event for the company, headquartered in Boca Raton, Florida. The notes will be available on the Nasdaq Global Market LLC under the symbols NEWTZ, NEWTI, and NEWTGN, along with the company's common stock, which is listed as NEWT.
This financial move is based on a press release statement and is significant for stakeholders and potential investors, offering insights into NewtekOne's latest capital market activities. The company's leadership, including Chief Executive Officer, President, and Chairman Barry Sloane, has officially signed off on the SEC filing, underscoring the importance of this development in NewtekOne's ongoing business strategy.
In other recent news, NewtekOne, Inc. has reported noteworthy developments. The company disclosed the appointment of Andrew Kaplan as its Chief Strategy Officer, bringing his extensive experience in banking and financial services to the team.
Additionally, NewtekOne has announced the divestiture of its subsidiary, Newtek Technology Solutions, Inc., to Paltalk, Inc. The transaction includes a $4 million cash payment and 4 million shares of Paltalk's newly created preferred stock.
NewtekOne has also demonstrated financial resilience in its Q2 2024 earnings, surpassing analysts' expectations with an earnings per share (EPS) of $0.43. The company has reaffirmed its full-year EPS guidance, indicating a range between $1.85 and $2.05. These developments underline NewtekOne's strategic maneuvers and financial strength in the face of changing landscapes.
Moreover, the company's robust deposit and loan growth, coupled with the successful launch of the Newtek Advantage business portal, have contributed to its strong performance.
InvestingPro Insights
In light of NewtekOne's recent announcement regarding the issuance of senior notes, key metrics from InvestingPro provide additional insights into the company's financial standing. With a market capitalization of $294.95 million, NewtekOne is trading at a low P/E ratio of 6.8, indicating that its shares might be undervalued relative to near-term earnings growth. This is further supported by the company's PEG ratio over the last twelve months as of Q2 2024, which stands at an attractive 0.4, suggesting that the stock could be a compelling choice for value investors.
InvestingPro Tips highlight that NewtekOne boasts a high shareholder yield and has consistently paid dividends to shareholders for 10 consecutive years, with a current dividend yield of 6.69%. This demonstrates the company's commitment to returning value to its investors. Moreover, analysts predict NewtekOne will be profitable this year, a sentiment backed by the company's profitability over the last twelve months.
For readers interested in a deeper dive into NewtekOne's financial health and future prospects, additional InvestingPro Tips are available at InvestingPro, offering a comprehensive analysis that could guide investment decisions.
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