NewtekOne (NEWT) secures $20M loan, may upsize by $10M
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
NewtekOne, Inc. disclosed that two wholly owned subsidiaries entered into a new Term Loan Agreement under which D2 Asset Based Credit Partners, LP extended a term loan with an aggregate principal amount of $20,000,000.
The loan may be increased by an additional $10,000,000 if certain lender consents and other conditions in the agreement are satisfied. The loan matures on April 28, 2029. A subsidiary pledged certain loans and equity interests as collateral, and NewtekOne guaranteed the prompt and unconditional payment of all borrower obligations. NewtekOne may receive all or part of the loan proceeds via dividend from a subsidiary for general corporate purposes.
Positive
- None.
Negative
- None.
8-K Event Classification
2 items: 2.03, 8.01
2 items
Item 2.03
Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement
Financial
The company incurred a new significant debt or off-balance-sheet obligation.
Item 8.01
Other Events
Other
Voluntary disclosure of events the company deems important to shareholders but not covered by other items.
Key Figures
Term loan principal: $20,000,000
Incremental loan capacity: $10,000,000
Loan maturity date: April 28, 2029
+2 more
5 metrics
Term loan principal
$20,000,000
Aggregate principal amount of new term loan
Incremental loan capacity
$10,000,000
Potential increase under Term Loan Agreement
Loan maturity date
April 28, 2029
Stated maturity of the term loan
Guarantor
NewtekOne, Inc.
Unconditional guarantee of borrower obligations
Number of borrowers
2
NH6 Borrower and SPV Borrower as co-borrowers
Key Terms
Term Loan Agreement, aggregate principal amount, events of default, unconditionally guaranteed, +1 more
5 terms
Term Loan Agreement financial
"entered into a Term Loan Agreement (the “Loan Agreement”)"
A term loan agreement is a formal contract in which a borrower receives a fixed amount of money from a lender and agrees to repay it over a set period with interest, much like a mortgage or car loan for a business. It matters to investors because the scheduled repayments, interest cost and any lender-imposed rules affect a company’s cash flow, financial flexibility and creditworthiness, which can change risk and share value.
aggregate principal amount financial
"extended a term loan to the Borrowers in the aggregate principal amount of $20,000,000"
The aggregate principal amount is the total amount of money borrowed through a bond or loan that the borrower promises to repay. It’s like the original price tag on a loan or bond, showing how much money is involved in the deal. This number matters because it indicates the size of the debt and helps investors understand the scale of the borrowing.
events of default financial
"specifies certain events of default, the occurrence of which could require the immediate repayment"
Events of default are specific breaches or failures listed in a loan, bond, or credit agreement that give lenders the right to act, such as demanding immediate repayment, raising interest rates, or taking secured assets. They matter to investors because triggering one is like setting off a financial alarm: it raises the chance of foreclosure, restructuring, or bankruptcy and can sharply reduce the value of a company’s stock or bonds and increase borrowing costs.
unconditionally guaranteed financial
"the Company unconditionally guaranteed the prompt and unconditional payment of all of the Borrowers’ obligations"
wholly-owned subsidiary financial
"a wholly-owned subsidiary of NewtekOne, Inc. (the “Company”), Newtek Business Services Holdco 6, Inc."
A wholly-owned subsidiary is a company whose entire ownership is held by another company, called the parent, so the parent controls all shares, board appointments and major decisions. For investors this matters because the subsidiary’s profits, losses, assets and liabilities are treated as part of the parent’s financial picture, affecting valuation and risk exposure — imagine a parent owning a single storefront outright and consolidating its receipts and bills into the parent’s books.
FAQ
What new financing did NewtekOne (NEWT) enter into?
NewtekOne’s subsidiaries entered a Term Loan Agreement with D2 Asset Based Credit Partners, LP for an aggregate principal amount of $20,000,000. The loan is guaranteed by NewtekOne and supported by pledged loans and equity interests as collateral.
When does NewtekOne’s new $20 million term loan mature?
The term loan obtained by NewtekOne’s subsidiaries under the Term Loan Agreement will mature on April 28, 2029. Until that date, the borrowers must comply with the agreement’s terms to avoid events of default that could trigger immediate repayment.
Can NewtekOne (NEWT) increase the size of this term loan?
Yes. Under the Term Loan Agreement, the initial $20,000,000 term loan may be increased by up to an additional $10,000,000. Any increase requires specified lender consent and satisfaction of conditions outlined in the agreement.
How will NewtekOne potentially use the proceeds of the new loan?
A subsidiary intends to dividend all or part of the loan proceeds to NewtekOne, Inc. If received, the company plans to use these funds for general corporate purposes, providing flexible funding at the parent level.
What collateral and guarantees support NewtekOne’s new term loan?
The SPV subsidiary pledged certain loans it owns, and another subsidiary pledged its equity interests in the SPV as collateral. Additionally, NewtekOne, Inc. provided an unconditional guarantee of all borrower obligations under the Term Loan Agreement, including all loans extended.
Who is the lender under NewtekOne’s new Term Loan Agreement?
The Initial Lender under the Term Loan Agreement is D2 Asset Based Credit Partners, LP, with D2 Asset Services, LLC acting as Agent. They extended the $20,000,000 term loan to NewtekOne’s subsidiaries under the documented terms.