Capital One Provides Newtek Financing Increase
Newtek Business Services announced its lending subsidiary, Newtek Small Business Finance, closed an additional $23 million in financing, which will increase its existing revolving credit facility to $50 million through Capital One. With this addition, the company’s total financing through Capital One is $70 million on a company-wide basis. The $70 million consists of a $10 million term loan, which will be fully amortized over four years, and up to $60 million in revolving lines of credit.
As previously reported, the $10 million term loan was used to refinance the company’s previous $10 million of mezzanine debt, which reduced the company’s cash interest expense on an annual basis by more than $1 million for a total of approximately $4.2 million over the remaining term of the retired mezzanine debt.
Barry Sloane, chairman, president and chief executive officer said, “We are pleased to announce the closing for an additional $23 million for our revolving credit facility, which brings our total available revolving financing for our lending business to $50 million through Capital One. We expect this additional financing to give us increased flexibility to better serve our clients, the ability to fund a greater number of loans and, in turn, enable us to issue larger securitizations with more attractive financing terms. Today’s announcement is testament to our ability to execute our previously stated strategy to obtain increased debt and equity financing with more attractive terms in order to further grow and enhance the profitability of our business.”
Newtek Business Services provides a wide range of business services and financial products under the Newtek brand.