NewtekOne’s consolidated subsidiary, Newtek ALP, amended its revolving credit facility with Capital One, which is employed to fund the origination of Alternative Loan Program (ALP) loans before they are placed into securitizations. The amendment provides for, among other things, a facility increase from $60 million to $100 million and a maturity extension of two years. The amended and extended Capital One facility comes on the heels of the Deutsche Bank ALP facility being amended in June.
“Our borrowing relationship with Capital One extends back almost 15 years. Capital One has been a great partner, helping NewtekOne to grow as a non-bank lender and subsequently as a financial holding company,” Barry Sloane, chairman, president and CEO of NewtekOne, said. “The expansion of this warehouse facility for ALP loans is consistent with the recent expansion of our Deutsche Bank ALP facility. Capital One Securities and Deutsche Bank, in addition to providing interim warehouse financing, have been instrumental in facilitating the distribution of our sixteen securitization transactions since 2010 and have helped us cultivate a large pool of institutional investors that participate in our securitizations. We are extremely appreciative of our history with Capital One and look forward to growing our business opportunities with the company.”
Capital One’s team was led by Eric Shea, senior managing director and head of structured products, and David Kucera, senior vice president and head of financial institutions group.
“We have been a provider of lines of credit and capital market securitization expertise to NewtekOne over its history as a lender to independent business owners and welcome the opportunity to expand our facility and participate in their efforts in providing financing to this important segment of the U.S. economy across all 50 states,” Shea and Kucera said.
