Newtek Business Services Corp., (NASDAQ: NEWT), an internally
managed business development company (“BDC”), today announced the
pricing of its public offering of $55.0 million in aggregate
principal amount of 5.75% Notes Due 2024 (the "Notes"). The Notes
will mature on August 1, 2024 and may be redeemed in whole or in
part at any time or from time to time at Newtek's option on or
after August 1, 2021. The Notes will bear interest at a rate of
5.75% per year payable quarterly. Newtek has also granted the
underwriters a 30-day option to purchase up to an additional $8.25
million in aggregate principal amount of the Notes to cover
overallotments, if any. The Company intends to use the net
proceeds from this offering to redeem the outstanding 2022 Notes,
which mature on September 30, 2022 and bear interest at a rate of
7.50%, currently trading under the symbol ‘NEWTZ,’ to increase its
SBA 7(a) lending activity, to make direct investments in portfolio
companies and for general working capital purposes.
The closing of the transaction is subject to
customary closing conditions, and the Notes are expected to be
delivered on or about July 29, 2019. Newtek expects to list
the Notes on the Nasdaq Global Market under the trading symbol
“NEWTL."
Keefe, Bruyette & Woods, Inc., A Stifel
Company, is acting as the book-running manager for this
offering. BB&T Capital Markets, a division of BB&T
Securities, LLC, Janney Montgomery Scott LLC, Ladenburg Thalmann
& Co. Inc, Compass Point Research & Trading, LLC, and
Capital One Securities, Inc. are acting as co-managers.
A shelf registration statement relating to this
offering was declared effective by the Securities and Exchange
Commission. The offering is being made only pursuant to a
prospectus supplement and related prospectus to be filed by Newtek
with the Securities and Exchange Commission. This press release
shall not constitute an offer to sell or the solicitation of an
offer to buy any securities nor will there be any sale of these
securities in any jurisdiction in which such offer, solicitation or
sale would be unlawful prior to registration or qualification under
the securities laws of any such jurisdiction.
Copies of the prospectus supplement and
accompanying prospectus relating to the offering may be obtained,
when available, from the book-running manager or any of the
co-managers as follows: Keefe, Bruyette & Woods, Inc., Attn:
Debt Capital Markets, 787 7th Avenue, 4th Floor, New York, NY
10019, (telephone number: 1-800-966-1559); BB&T Capital
Markets, a division of BB&T Securities, 901 East Byrd
Street, Suite 300, Richmond, VA 23219 Attention: Syndicate Dept.,
email: prospectusrequests@bbandtcm.com; telephone: 844-499-2713;
Janney Montgomery Scott LLC, Attention: Taxable Fixed Income
Department., 1717 Arch Street, Philadelphia, PA 19103, telephone
(215) 665-4450; Ladenburg Thalmann & Co. Inc., Attention:
Syndicate Department, 58 South Service Road, Suite 160, Melville,
NY 11747, telephone: 631-270-1600, email:
prospectus@ladenburg.com; Compass Point Research &
Trading, LLC, 1055 Thomas Jefferson Street NW, Suite 303
Washington, D.C. 20007, email: syndicate@compasspointllc.com,
telephone: 202 540 7300 or Capital One Securities, Inc.
Investors are advised to carefully consider the
investment objective, risks, charges and expenses of Newtek before
investing. The preliminary prospectus supplement dated July 24,
2019 and the accompanying prospectus dated July 3, 2019, which have
been filed with the Securities and Exchange Commission, contain
this and other information about Newtek and should be read
carefully before investing.
The information in the preliminary prospectus
supplement, the accompanying prospectus and this press release is
not complete and may be changed.
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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