Newtek Small Business Finance, LLC Increases Capital One Revolving Credit Facility to $150.0 Million
June 24 2019 - 8:30AM
Newtek Business Services Corp. (“Newtek” or the “Company”),
(Nasdaq: NEWT), an internally managed business development company
("BDC"), today announced that Newtek Small Business Finance, LLC
(“NSBF”), the Company’s nationally licensed SBA lender subsidiary,
increased its existing revolving credit facility through Capital
One, National Association (“Capital One”) by $50.0 million to
$150.0 million.
Barry Sloane, Chairman, President and Chief Executive Officer
said, “As our loan referral volume and loan fundings continue to
grow, we made the decision to increase the capacity of our
revolving credit facility with Capital One. In addition, we
believe the addition of our joint venture non-conforming loan
program - Newtek Conventional Lending - will draw more attention to
the Newtek lending solutions and business solutions model as the
joint venture can fund loans up to $15.0 million with long-term
debt. We are maintaining our full year 2019 SBA 7(a) loan fundings
forecast of between $580 million and $620 million, which would
represent a 27.9% increase, at the midpoint of the range, over SBA
7(a) loan fundings for the year ended December 31, 2018. We
anticipate continuing to securitize the unguaranteed portions of
our SBA 7(a) loans and pay down the revolving credit facility from
time to time. Our goal is to issue larger S&P-rated
securitization transactions and to obtain more attractive pricing
and larger institutional interest. To date, we have completed nine
S&P-rated securitization transactions.”
About Newtek Business Services Corp.
Newtek 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
and financial solutions 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 relationships 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,
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
Statements
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.
Investor Relations & Public
RelationsContact: Jayne Cavuoto Telephone: (212) 273-8179
/ jcavuoto@newtekone.com
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