NewtekOne Pays Off $185M in Credit Facilities, Shifts to Deposit Funding for Loans
Summary
NewtekOne's subsidiary, Newtek ALP Holdings, has paid off and expects to terminate approximately $185 million in revolving credit facilities from Capital One and Deutsche Bank. This strategic move, facilitated by a January 2026 securitization, shifts the funding of its C&I longer amortizing (C&I LA) loans to its bank subsidiary, Newtek Bank, N.A., which will now fund these loans with deposits. This transition is a significant positive development, as it reduces the company's reliance on potentially more expensive or less stable holding company debt and leverages the bank's deposit base for funding. It is expected to improve financial flexibility and potentially lower funding costs, strengthening the company's balance sheet. Traders will watch for further details on the impact on interest expense and the efficiency of the new funding model.
At the time of this announcement, NEWT was trading at $12.07 on NASDAQ in the Finance sector, with a market capitalization of approximately $348M. The 52-week trading range was $9.44 to $14.91. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: GlobeNewswire.