Newtek Business Services, an internally managed business development company, announced that Premier Payments and Newtek Merchant Solutions, two of the company’s wholly owned payment processing portfolio companies, closed $50 million in financing arranged by Webster Bank.
The $50 million in financing consists of a $35 million five-year term loan, and a $15 million revolving credit facility. The portfolio companies used a portion of this financing to repay the outstanding balance and retired the $50 million term loan with Goldman Sachs Specialty Lending Group, an affiliate of the Goldman Sachs Group. The financing with Webster Bank represents an improvement over the interest rate on the term loan with the existing lender.
Barry Sloane, chairman, president and CEO commented, “We greatly appreciate the efforts of Webster Bank and its syndicate partners in offering our portfolio companies a $50 million financing facility for their electronic payment processing business. As our portfolio company payments business has grown and advanced, their ability to amortize a five-year debt facility and receive a significant interest rate reduction on the debt is extremely valuable, and we believe will enhance their ability to pay distributions.”