NEW YORK, March 20, 2013 /PRNewswire/ -- Newtek Business Services, NASDAQ: NEWT, The Small Business Authority ®, announced today that it has sold $20.909 million single A-rated securities through Guggenheim Securities as the placement agent. The collateral consisted of 113 loans with an aggregate principal balance of $23.569 million. These loans were made by Newtek to small- and medium-sized businesses and were used to refinance debt, acquire real estate, and purchase business, machinery and equipment. The securitization funded and closed on March 20, 2013. Guggenheim Securities placed the issue with four institutional investors.
Barry Sloane, Chairman, President and Chief Executive Officer of Newtek Business Services said, "This securitization will fully repay our outstanding senior secured warehouse line with Capital One N.A. The Company has elected to securitize the uninsured portions of its SBA 7(a) loan originations due to attractive features of long -term matched asset liability financing. It also provides an additional 15 percent fund for additional originations at a lower cost of interest than our warehouse facility. As compared to our prior securitizations in 2010 and 2011, this current securitization was rated single-A by Standard and Poors and we were able to improve our advance rate by 8-9%, as well as improve our long-term cost of interest by more than 150 basis points.
For 2013, we continue to expect to originate and close between $150-$200 million of SBA 7(a) loans through our small business lending subsidiary Newtek Small Business Finance."
Mr. Sloane concluded, "We want to thank Guggenheim Securities for placing our bonds with multiple institutional investors beyond those that participated in our prior securitization transactions. We look forward to continuing to use our existing financing sources and asset securitizations to grow our small business lending segment's profitability."About Newtek Business Services, Inc. Newtek Business Services, The Small Business Authority®, provides the following products and services:
- Newtek Advantage™ : Mobile real-time operating platform for business intelligence. The Newtek Advantage™ puts all critical business transactions in real-time. Access data on your smartphone, tablet, laptop or PC as it relates to eCommerce for credit/ debit transactions, website statistics, payroll, insurance and business loans.
- Electronic Payment Processing : eCommerce, electronic solutions to accept non-cash payments, including credit and debit cards, check conversion, remote deposit capture, ACH processing, and electronic gift and loyalty card programs.
- Managed Technology Solutions (Cloud Computing): Full-service web host, which offers eCommerce solutions, shared and dedicated web hosting and related services including domain registration and online shopping cart tools.
- eCommerce: A suite of services that enable small businesses to get up and running on-line quickly and cost effectively, with integrated web design, payment processing and shopping cart services.
- Business Lending : Broad array of lending products including SBA 7(a) and SBA 504 loans.
- Insurance Services : Commercial and personal lines of insurance, including health and employee benefits in all 50 states, working with over 40 insurance carriers.
- Web Services: Customized web design and development services.
- Data Backup, Storage and Retrieval: Fast, secure, off-site data backup, storage and retrieval designed to meet the specific regulatory and compliance needs of any business.
- Accounts Receivable Financing: Receivable purchasing and financing services.
- Payroll : Complete payroll management and processing services.