BDC Newtek Business Services (NASDAQ:NEWT) has announced a new baby bond with a maturity date in 2024.
The company states that the “use of proceeds” is to call the 2022 7.50% baby bonds (NEWTZ). These baby bonds were trading as high as $28.00 in recent days. Investors were totally asleep at the wheel on this one–although we know a number of readers were on this one and sold at high prices and got out. We had seen a few exchanges of comments on this one.
The chart on the NEWTZ issue is here and you will be able to see a $1/share drop when folks wake up.