BDC Newtek Business Services Prices Baby Bond

Newtek Business Services (NASDAQ:NEWT), a BDC (business development company) has priced a new baby bond issue with a coupon of 6.25%.

The 2 million notes will have a maturity date on 3/1/2023 with an early call available starting 3/1/2020.

At this time we have not had time to review the issue in full so we don’t know if we will be a buyer.  In general the coupon is a tad bit meager for us.

Further details are here.

We note that the company will be partially or fully calling the 7% notes outstanding (NASDAQ:NEWTL).  These notes have been callable since 4/2017 and mature in 2021.