NewtekOne Initiates Exchange Offer for 5.50% Notes to 8.50% Senior Notes
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 01 2025
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Should l Buy NEWT?
Source: Newsfilter
- Exchange Offer Announcement: NewtekOne has initiated an exchange offer to swap $95 million of its 5.50% Notes for newly issued 8.50% Senior Notes, aiming to extend debt maturity and improve financial flexibility, which could enhance the company's capital management.
- Interest Rate Increase: The new notes will bear an interest rate of 8.50%, a 3% increase over the old notes, which is expected to attract more investors and strengthen the company's capital structure and market confidence.
- Extended Maturity: The new notes will mature on February 1, 2031, extending the maturity period by five years compared to the old notes maturing in 2026, providing a longer timeframe for strategic investments and operational planning.
- Listing on Nasdaq: NewtekOne intends to list the new notes on Nasdaq within 30 days post-settlement, which will enhance liquidity and provide investors with more trading opportunities, thereby increasing market visibility and interest in the company.
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Analyst Views on NEWT
Wall Street analysts forecast NEWT stock price to rise
4 Analyst Rating
1 Buy
3 Hold
0 Sell
Hold
Current: 12.960
Low
12.50
Averages
14.50
High
18.00
Current: 12.960
Low
12.50
Averages
14.50
High
18.00
About NEWT
NewtekOne, Inc. is a financial holding company, which along with its bank and non-bank consolidated subsidiaries, provides a range of business and financial solutions under the Newtek brand to independent business owners. It segments include Banking, Alternative Lending, NSBF and Corporate and Other. The Company and its subsidiaries’ business and financial solutions include banking (Newtek Bank, N.A.), business lending, business administration (SBA) lending solutions, electronic payment processing, accounts receivable financing & inventory financing, insurance solutions and payroll and benefits solutions. In addition, it offers its clients technology solutions, including cloud computing, data backup, storage and retrieval, IT consulting, and Web services provided by Intelligent Protection Management Corp. (IPM.com). Its trademarks include Newtek, NewtekOne, Newtek Bank, National Association, Your Business Solutions Company, One Solution for All Your Business Needs and Newtek Advantage.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
NewtekOne Retires $95 Million Debt Ahead of Schedule
- Debt Retirement Achieved: NewtekOne announced the early retirement of $95 million in fixed-rate senior notes, originally maturing on February 1, 2026, marking the completion of its last remaining debt from its time as a business development company, thereby enhancing financial flexibility.
- Diverse Funding Sources: The repayment was funded using $87.1 million of working capital and a recent exchange offer that converted $7.9 million of the notes into newly issued NEWTO notes, demonstrating the company's agility and innovation in capital management.
- Positive Market Reaction: Following the repayment announcement, NewtekOne's stock price rose 0.37% in pre-market trading to $13.44, reflecting investor recognition and confidence in the company's financial health.
- Optimistic Future Outlook: NewtekOne targets a midpoint EPS of $2.35 for 2026, as the momentum of ALP loans accelerates, positioning the company for enhanced profitability and competitive strength in the market.
See More
NewtekOne Retires $95 Million Debt
- Debt Repayment Achievement: NewtekOne successfully retired $95 million of fixed-rate senior notes on February 1, 2026, marking a total redemption of $294 million since 2018, showcasing the company's strong financial management capabilities.
- Diverse Funding Sources: The repayment was primarily funded by $87.1 million in working capital and $7.9 million from a recently completed exchange offer for newly issued NEWTO notes, indicating the company's flexibility and innovation in capital utilization.
- Strong Historical Performance: CEO Barry Sloane highlighted that NewtekOne has never missed a principal or interest payment in its 25-year public history, with 17 securitizations maintaining investment-grade ratings, reflecting robust creditworthiness.
- Wide Range of Services: As a financial holding company, NewtekOne offers various business solutions including banking, business lending, and electronic payment processing, aimed at helping independent business owners increase sales, control costs, and reduce risks, further solidifying its market position.
See More
NewtekOne, Inc. Reports Strong Q4 2025 Earnings and Growth
- Significant Earnings Growth: NewtekOne reported a net income of approximately $80 million for 2025, reflecting a 16.4% increase, with total revenue reaching $284 million, up 10.6% from 2024, showcasing strong performance in the financial services sector.
- Deposit Account Innovation: The company opened 9,000 new deposit accounts in Q4, bringing active accounts to 34,000, indicating successful implementation of digital account opening and lending systems, enhancing customer retention and market competitiveness.
- Management Changes: NewtekOne appointed several new executives, including Greg Devaney as Chief Credit Officer and Chris Lucas as Chief Compliance Officer, aimed at improving corporate governance and strategic execution to support future business expansion.
- 2026 Outlook: The company projects a midpoint EPS of $2.35 for 2026, reflecting optimistic expectations for future loan originations and market demand, while emphasizing ongoing support for independent business owners and prudent risk management.
See More
NewtekOne (NEWT) Q4 2025 Earnings Call Transcript
See More
NewtekOne Q4 Earnings Miss Expectations
- Earnings Shortfall: NewtekOne reported a Q4 GAAP EPS of $0.65, missing expectations by $0.04, indicating pressure on profitability that could undermine investor confidence.
- Revenue Decline: The company’s revenue of $73.33 million represents a 2.7% year-over-year decrease, falling short of market expectations by $6.68 million, highlighting a trend of slowing business growth.
- Market Reaction: Given the disappointing earnings report, NewtekOne's stock price may face downward pressure, prompting investors to closely monitor subsequent strategic adjustments and market responses.
- Future Outlook: Despite the current underperformance, NewtekOne must formulate effective growth strategies to address market challenges and restore investor confidence.
See More
NewtekOne to Announce Q4 Earnings on January 29
- Earnings Announcement: NewtekOne (NEWT) is set to release its Q4 earnings on January 29 after market close, with consensus EPS estimated at $0.66 and revenue expected to reach $80.01 million, reflecting a 6.2% year-over-year growth.
- Earnings Estimate Changes: Over the past three months, EPS estimates have seen one upward revision and three downward adjustments, while revenue estimates experienced one upward and one downward revision, indicating mixed market sentiment regarding the company's performance.
- Investor Attention: The upcoming earnings report is expected to draw significant investor interest, particularly given the current economic climate, where analysts have divergent views on the company's growth potential, which may influence stock price volatility.
- Market Reaction Expectations: As the earnings date approaches, the market's reaction to NewtekOne will depend on the actual results versus expectations, prompting investors to closely monitor the forthcoming financial data and its implications for the company's future strategy.
See More
NewtekOne Retires $95 Million Debt Ahead of Schedule
- Debt Retirement Achieved: NewtekOne announced the early retirement of $95 million in fixed-rate senior notes, originally maturing on February 1, 2026, marking the completion of its last remaining debt from its time as a business development company, thereby enhancing financial flexibility.
- Diverse Funding Sources: The repayment was funded using $87.1 million of working capital and a recent exchange offer that converted $7.9 million of the notes into newly issued NEWTO notes, demonstrating the company's agility and innovation in capital management.
- Positive Market Reaction: Following the repayment announcement, NewtekOne's stock price rose 0.37% in pre-market trading to $13.44, reflecting investor recognition and confidence in the company's financial health.
- Optimistic Future Outlook: NewtekOne targets a midpoint EPS of $2.35 for 2026, as the momentum of ALP loans accelerates, positioning the company for enhanced profitability and competitive strength in the market.
See More
NewtekOne Retires $95 Million Debt
- Debt Repayment Achievement: NewtekOne successfully retired $95 million of fixed-rate senior notes on February 1, 2026, marking a total redemption of $294 million since 2018, showcasing the company's strong financial management capabilities.
- Diverse Funding Sources: The repayment was primarily funded by $87.1 million in working capital and $7.9 million from a recently completed exchange offer for newly issued NEWTO notes, indicating the company's flexibility and innovation in capital utilization.
- Strong Historical Performance: CEO Barry Sloane highlighted that NewtekOne has never missed a principal or interest payment in its 25-year public history, with 17 securitizations maintaining investment-grade ratings, reflecting robust creditworthiness.
- Wide Range of Services: As a financial holding company, NewtekOne offers various business solutions including banking, business lending, and electronic payment processing, aimed at helping independent business owners increase sales, control costs, and reduce risks, further solidifying its market position.
See More
NewtekOne, Inc. Reports Strong Q4 2025 Earnings and Growth
- Significant Earnings Growth: NewtekOne reported a net income of approximately $80 million for 2025, reflecting a 16.4% increase, with total revenue reaching $284 million, up 10.6% from 2024, showcasing strong performance in the financial services sector.
- Deposit Account Innovation: The company opened 9,000 new deposit accounts in Q4, bringing active accounts to 34,000, indicating successful implementation of digital account opening and lending systems, enhancing customer retention and market competitiveness.
- Management Changes: NewtekOne appointed several new executives, including Greg Devaney as Chief Credit Officer and Chris Lucas as Chief Compliance Officer, aimed at improving corporate governance and strategic execution to support future business expansion.
- 2026 Outlook: The company projects a midpoint EPS of $2.35 for 2026, reflecting optimistic expectations for future loan originations and market demand, while emphasizing ongoing support for independent business owners and prudent risk management.
See More
NewtekOne (NEWT) Q4 2025 Earnings Call Transcript
See More
NewtekOne Q4 Earnings Miss Expectations
- Earnings Shortfall: NewtekOne reported a Q4 GAAP EPS of $0.65, missing expectations by $0.04, indicating pressure on profitability that could undermine investor confidence.
- Revenue Decline: The company’s revenue of $73.33 million represents a 2.7% year-over-year decrease, falling short of market expectations by $6.68 million, highlighting a trend of slowing business growth.
- Market Reaction: Given the disappointing earnings report, NewtekOne's stock price may face downward pressure, prompting investors to closely monitor subsequent strategic adjustments and market responses.
- Future Outlook: Despite the current underperformance, NewtekOne must formulate effective growth strategies to address market challenges and restore investor confidence.
See More
NewtekOne to Announce Q4 Earnings on January 29
- Earnings Announcement: NewtekOne (NEWT) is set to release its Q4 earnings on January 29 after market close, with consensus EPS estimated at $0.66 and revenue expected to reach $80.01 million, reflecting a 6.2% year-over-year growth.
- Earnings Estimate Changes: Over the past three months, EPS estimates have seen one upward revision and three downward adjustments, while revenue estimates experienced one upward and one downward revision, indicating mixed market sentiment regarding the company's performance.
- Investor Attention: The upcoming earnings report is expected to draw significant investor interest, particularly given the current economic climate, where analysts have divergent views on the company's growth potential, which may influence stock price volatility.
- Market Reaction Expectations: As the earnings date approaches, the market's reaction to NewtekOne will depend on the actual results versus expectations, prompting investors to closely monitor the forthcoming financial data and its implications for the company's future strategy.
See More
