NewtekOne, Inc. Closes ALP Loan Securitization with Sale of $295 Million of Rated Notes
Rhea-AI Summary
NewtekOne (NASDAQ: NEWT) closed a $295 million rated securitization (NALP Business Loan Trust 2026-1) backed by $341.78 million of ALP loans on Jan 21, 2026. The trust sold $251.88M Class A, $35.88M Class B and $6.84M Class C notes; Class A was rated A (low) (sf). The deal was ~10x oversubscribed to 32 institutions. Notes had a weighted average yield of 6.08% and a weighted average spread of 243 bps, versus 271 bps in 2025; collateral gross coupon ~12.74% (net 11.74% after 100 bps servicing).
The transaction is the company’s 17th and largest rated securitization; ALP originations since 2019 total ~$850M with six defaults and one $6M charge-off.
Positive
- $295M securitization closed, company’s largest rated deal
- Deal ~10x oversubscribed with 32 institutional buyers
- Class A rated A (low) (sf); historical securitizations kept or upgraded ratings
- Weighted average spread improved to 243 bps from 271 bps in 2025
Negative
- Junior Class C note priced at a high yield of 10.146%
- ALP program shows one $6M charge-off since 2019
News Market Reaction – NEWT
In the Jan 21 session, NEWT gained 2.07%, reflecting a moderate positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Historical Context
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Jan 12 | Earnings date set | Neutral | +4.7% | Scheduled Q4 2025 results and conference call with management. |
| Jan 12 | Debt exchange update | Neutral | +4.7% | Extended exchange offer for 5.50% Notes due 2026 into 2031 notes. |
| Jan 08 | EPS guidance, Investor Day | Positive | +5.9% | Released 2026 EPS guidance and detailed strategy at Investor Day. |
| Dec 23 | Investor Day announcement | Neutral | -2.2% | Announced January 8, 2026 Analyst and Investor Day event. |
| Dec 10 | Preferred dividend | Positive | +1.9% | Declared dividend on 8.500% Series B preferred shares. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Recent company-specific announcements, especially around guidance, capital structure, and dividends, have generally been met with positive price reactions, indicating investors have rewarded NewtekOne’s strategic and financing updates.
Over the last six weeks, NewtekOne has released several capital-markets and investor-relations updates. The company provided 2026 EPS guidance of $2.15–$2.55 and hosted an Investor Day, which coincided with a +5.87% move, and extended an exchange offer for 5.50% Notes due 2026, tied to a +4.67% reaction. A dividend on 8.500% Series B preferred shares also saw a positive response. Against this backdrop of generally constructive reactions, today’s sizable decline alongside a large, rated ALP loan securitization represents a notable divergence.
Key Terms
asset-backed securitization financial
c&i loans financial
prepayment penalties financial
rule 144a regulatory
AI-generated analysis. How Rhea-AI works. Not financial advice.
Transaction Marks NewtekOne’s 17th and Largest Securitization
BOCA RATON, Fla., Jan. 21, 2026 (GLOBE NEWSWIRE) -- NewtekOne, Inc. (the “Company”) (NASDAQ: NEWT) announced today that it has closed a
Pursuant to the securitization, the Company sold
- The Class A Notes received a Morningstar DBRS rating of “A (low) (sf)” and were priced at a yield of
5.796% . - The Class B Notes received a Morningstar DBRS rating of “BBB (sf)” and were priced at a yield of
7.296% . - The Class C Note received a Morningstar DBRS rating of “BB (sf)” and was priced at a yield of
10.146% . - The Notes had a weighted average yield of
6.08% , a weighted average spread (over the Treasury benchmark) of 243 basis points, which marks an improvement from 271 basis points for the 2025 ALP-backed securitization, and an advance rate of86% , slightly higher than the advance rate of85% for the 2025 ALP-backed securitization. - The gross weighted average coupon of the collateralizing portfolio of loans approximates
12.74% with loans floored at their initial rates for the life of the loans; after netting out 100 bps of servicing fees, the loans entered the collateral pool at a net weighted-average coupon of11.74% .
The Company views ALP loans as longer amortizing C&I loans. The Company underwrites ALP loans with the thesis that the underlying businesses are the primary sources of repayments of the loans, not the collateral or guarantors. The Company requires that
Barry Sloane, Chairman, President, and Chief Executive Officer, commented, “We are extremely pleased to have completed a fourth securitization backed by ALP loans and are grateful to our investment bankers, Deutsche Bank Securities, Capital One Securities, and Santander, for their efforts. We intend to continue to issue securitizations backed by ALP loans and continue to view ALP loans as an important element to the Company’s offering of business and financial solutions and our financial performance.”
Mr. Sloane continued, “During our recent Investor Day held on January 8th (link to presentation and replay of webcast), we discussed our ALP securitizations and demonstrated that these securitizations have had wide spreads between the yields on the ALP loans collateralizing the securitizations and the weighted-average coupons of the debt issued by securitization trusts; a majority of that excess spread is used to retire the securitization debt. In addition, we showed that the securitized debt of the two prior ALP securitizations, NALP Business Loan Trust 2024-1 and NALP Business Loan Trust 2025-1, was being retired at a faster pace than the ALP loans securing the transactions (due to the excess spread between the yield on loans and coupon on securitized debt), which has led to growing book values (or overcollateralization positions) of the securitizations. In 2026-1, there is almost 570 basis points of margin or excess spread to support the Note holders’ yield; the 2026-1’s excess net spread is nearly identical to that of the 2025 ALP-backed securitization.”
Mr. Sloane added, “Since 2019, when we started to originate ALP loans, we have originated roughly
Mr. Sloane concluded, “We are proud of our track record and believe that we continue to demonstrate that we are a premier originator of business loans to independent business owners in all 50 states, using various forms of financings and deal structures to achieve our goals and those of our customers. We have structured our business loans to deliver value to our independent business owner borrowers and our shareholders. We make term loans and revolving lines of credit as well as short-term amortizing bank loans and CRE loans. In our ALP loan program, we charge a reasonable rate of interest and amortize principal payments over 10-25 years as opposed to some competitors that charge borrowers 30
The Notes were not registered under the Securities Act of 1933, as amended (the “Securities Act”), and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. The Notes may only be offered and sold in the United States in accordance with Rule 144A under the Securities Act.
This press release does not constitute an offer to sell or the solicitation of any offer to buy the Notes, nor shall there be any sale of the Notes in any jurisdiction in which such offer, solicitation or sale would be unlawful under the laws of such jurisdiction. The offer and sale of the Notes was made solely pursuant to a confidential private placement memorandum.
About NewtekOne, Inc.
NewtekOne®, Your Business Solutions Company®, is a financial holding company, which along with its bank and non-bank consolidated subsidiaries (collectively, “NewtekOne”), provides a wide range of business and financial solutions under the Newtek® brand to independent business owners. Since 1999, NewtekOne has provided state-of-the-art, cost-efficient products and services and efficient business strategies to independent business owners across all 50 states to help them grow their sales, control their expenses, and reduce their risk.
NewtekOne’s and its subsidiaries’ business and financial solutions include: Banking (Newtek Bank, N.A.), Business Lending, SBA Lending Solutions, Electronic Payment Processing, Accounts Receivable Financing & Inventory Financing, Insurance Solutions and Payroll and Benefits Solutions. In addition, NewtekOne offers its clients the Technology Solutions (Cloud Computing, Data Backup, Storage and Retrieval, IT Consulting and Web Services) provided by Intelligent Protection Management Corp. (IPM.com)
Newtek®, NewtekOne®, Newtek Bank®, National Association, Your Business Solutions Company®, One Solution for All Your Business Needs® and Newtek Advantage® are registered trademarks of NewtekOne, Inc.
Note Regarding Forward-Looking Statements
Certain statements in this press release are “forward-looking statements” within the meaning of the rules and regulations of the Private Securities Litigation and Reform Act of 1995 are based on the current beliefs and expectations of NewtekOne's management and are subject to significant risks and uncertainties. Actual results may differ materially from those set forth in the forward-looking statements. See “Note Regarding Forward-Looking Statements” and the sections entitled “Risk Factors” in our filings with the Securities and Exchange Commission which are available on NewtekOne's website (https://investor.newtekbusinessservices.com/sec-filings) and on the Securities and Exchange Commission’s website (www.sec.gov). Any forward-looking statements made by or on behalf of NewtekOne speak only as to the date they are made, and NewtekOne does not undertake to update forward-looking statements to reflect the impact of circumstances or events that arise after the date the forward-looking statements were made.
SOURCE: NewtekOne, Inc.
Investor Relations & Public Relations
Contact: Bryce Rowe
Telephone: (212) 273-8292 / browe@newtekone.com
