Newtek Business Services Corp. priced its largest small-business loan securitization with an offering of about $58.1 million of class A notes and about $17.3 million of class B notes.
The notes were priced at an average initial yield of 3.59% across classes and had a 79.5% advance rate. The company said the notes are collateralized by the right to receive payments and other recoveries attributable to the unguaranteed parts of the SBA 7(a) loans made by Newtek Small Business Finance LLC and overcollateralized by Newtek Small Business Financial's participation interest in the unguaranteed parts.
Deutsche Bank Securities Inc. is acting as the sale's sole book runner. The company expects the transaction to close in the upcoming week.