NewtekOne, Inc. Closes ALP Loan Securitization with Sale of $295 Million of Rated Notes
BOCA RATON, Fla., Jan. 21, 2026 (GLOBE NEWSWIRE) -- NewtekOne, Inc. (the "Company") (NASDAQ:NEWT) announced today that it has closed a $295 million securitization backed by $342 million of Alternative Loan Program ("ALP") loans. This securitization, NALP Business Loan Trust 2026-1 ("2026-1"), represents the Company's fourth asset-backed securitization secured by ALP loans and is the Company's 17th and largest rated securitization. All of the Company's prior securitizations have maintained their initial investment-grade ratings or been upgraded and have never been on credit watch.
Pursuant to the securitization, the Company sold $251,880,000 of Class A Notes, $35,880,000 of Class B Notes, and $6,840,000 of a Class C Note (collectively, the "Notes") issued by 2026-1. The Notes are backed by $341,776,148 of collateral, consisting of $284,376,148 of Company originated ALP loans and a $57,400,000 prefunding account to acquire additional ALP loans originated by the Company. The securitization was roughly ten times oversubscribed with 32 institutions purchasing the Notes.
The Class A Notes received a Morningstar DBRS rating of "A (low) (sf)" and were priced at a yield of 5.796%.
The Class B Notes received a Morningstar DBRS rating of "BBB (sf)" and were priced at a yield of 7.296%.
The Class C Note received a Morningstar DBRS rating of "BB (sf)" and was priced at a yield of 10.146%.
The Notes had a weighted average yield of 6.08%, a weighted average spread (over the Treasury benchmark) of 243 basis points, which marks an improvement from 271 basis points for the 2025 ALP-backed securitization, and an advance rate of 86%, slightly higher than the advance rate of 85% for the 2025 ALP-backed securitization.
The gross weighted average coupon of the collateralizing portfolio of loans approximates 12.74% with loans floored at their initial rates for the life of the loans; after netting out 100 bps of servicing fees, the loans entered the collateral pool at a net weighted-average coupon of 11.74%.
The Company views ALP loans as longer amortizing C&I loans. The Company underwrites ALP loans with the thesis that the underlying businesses are the primary sources of repayments of the loans, not the collateral or guarantors. The Company requires that 20% or greater equity owners of the businesses personally guarantee the loans. In addition, all business assets of the borrowers are pledged as collateral against ALP loans. In many cases, the Company may also take liens on personal assets of the business owners. ALP loans typically carry 5% prepayment penalties for the first three years and 3% for months 36-48. In the Company's experience, our borrowers prefer long-term amortizing loans without balloons; therefore, the ALP loan's longer-term amortization gives the borrower a lower payment relative to market alternatives with shorter repayment schedules and/or higher interest rates.
Barry Sloane, Chairman, President, and ...
