- NewtekOne (NEWT, Financial) closes a $184 million securitization backed by $216 million worth of ALP loans.
- The securitization consisted of Class A, B, and C Notes and achieved an 85% advance rate with a 6.62% weighted average yield.
- The company's earnings per share (EPS) guidance for 2025 remains within the range of $2.10 to $2.50.
NewtekOne, Inc. (NEWT), a leading financial solutions provider, has successfully closed a $184 million securitization, backed by $216 million of loans from its Alternative Loan Program (ALP). This transaction, known as NALP Business Loan Trust 2025-1, marks NewtekOne's third securitization backed by ALP loans and their 16th rated securitization overall.
The securitization involved the sale of $155.9 million in Class A Notes rated 'A (low) (sf)' with a yield of 6.338%, $23.8 million in Class B Notes rated 'BBB (sf)' with a yield of 7.838%, and $4.3 million in Class C Notes rated 'BB (sf)' with a yield of 10.338%. Notably, the securitization achieved an impressive 85% advance rate, an increase from the 80% rate of the previous year, with the notes obtaining a weighted average yield of 6.62%.
The asset portfolio collateralizing the notes carries a gross weighted average coupon of 13.30% and a net weighted average coupon of 12.30%, resulting in a substantial margin of 570 basis points for bondholders. Since the inception of the ALP in 2019, NewtekOne has originated approximately $480 million in loans, with only four defaults and no charge-offs to date, showcasing their effective risk management strategies.
Despite acknowledging the challenges in the current economic climate, NewtekOne maintains its 2025 earnings per share (EPS) guidance range of $2.10 to $2.50, underscoring its confidence in its business operations and market positioning.
