Below are the details on the new NewTekOne baby bonds which just priced. At 8.5% the coupon looks pretty tasty–I say this only as I remember NEWT as a business development company (BDC) that used to primarily write loans as part of the SBA (small business administration) program. I have NOT looked closely at the company as a bank holding company and have to do so before I commit funds. Of course one needs to compare this new issue to the other outstanding issues before committing to the new one–coupon isn’t the only way to decide if it is suitable.
The pricing term sheet is here.
Trading at Fido 24.75
2whiteroses personal favorite bank, NEWT, may very well see this 8.5% issuance finally coming to market. This was posted yesterday.
https://www.sec.gov/Archives/edgar/data/1587987/000135445724000362/NEWTG_8-A_Cert.pdf
Since 2WR, has a NEWT poster hanging on his living room wall, I will be in for a small position in this if its buyable around par once it starts trading.
Thanks Grid–I’ll take a taste unless it leaves the station without me.
Tim, NEWTG is now trading. I bought a modest 400 shares at $24.75 just now, on Vanguard.
$24.77 here on NEWTG
Yeah, Barry and I are real tight – just as long as I don’t bring up THE subject of asset coverage ratio as it pertains to Z and L as a vestige of NEWT’s former BDC status … or how that coverage ratio needs to apply to all senior notes just as long as Z and L remain outstanding even if pari passu notes such as G are not directly subject to the same ratio. I still don’t understand why this is not considered an important point to anyone else…
Speaking of NEWTL, ability to successfully issue G should take credit risk out of the equation for L between now and maturity date of 8/1/24…At 25.04, YTM = 8%…. Nice hiding place for cash?
G was priced too cheaply…. I sure didn’t expect early price talk to remain the final price….. I had to jump on too……
Can anyone explain NewTekOne’s logic with respect to the issuance and redemption of the different notes?