BOCA RATON, Fla., July 24, 2024 (GLOBE NEWSWIRE) -- NewtekOne, Inc. (the "Company") (NASDAQ:NEWT), announced today that its joint venture, Newtek-TSO II Conventional Credit Partners, LP ("Newtek-TSO"), has closed a securitization backed by alternative business loans, selling $137,170,000 of Class A Notes and $17,150,000 of Class B Notes (collectively, the "Notes") issued by NALP Business Loan Trust 2024-1. The Notes are backed by $190,520,000 of collateral, consisting of $159,770,000 of Company originated alternative loan program ("ALP") loans and $30,750,000 prefunding account to acquire additional ALP loans originated by the Company in May 2024. The Class A and Class B Notes received Morningstar DBRS ratings of "A (sf)" and "BBB (high) (sf)", respectively. The Notes had an 81.0% advance rate. Newtek-TSO received in excess of $370 million in requests for approximately $154 million of Notes. The Class A Notes were priced at a yield of 6.585%, and the Class B Notes were priced at a yield of 7.835%, for a combined weighted average yield of 6.724% on the Notes. This securitization transaction represents the second term asset-backed securitization closed by a Company joint venture and secured by ALP loans - loans which do not conform to the requirements of the Small Business Administration ("SBA") 7(a) loan program. Historically, the Company has issued fifteen rated securitizations, two of which were with joint ventures and backed by ALP loans. All of the Company's prior securitizations have maintained their investment-grade ratings or been upgraded. For additional detail on this alternative business loan backed securitization, please use the following link NALP Business Loan Trust 2024-1. The majority of the ALP loans in the collateral pool were underwritten by the Company as business loans where the business must be the primary source of repayment of principal and interest is based on historical or projected cash flows of the borrowers. In addition, under the Company's ALP, all loans have multiple personal guarantees of any 20% or greater equity owner of the borrower. Moreover, ALP loans are secured by all business assets of the borrower, including any owner-occupied commercial real estate ("CRE"), accounts receivable and inventory, machinery and equipment, personal residential real estate ("RRE"), and other assets such as enterprise value of the primary business, and potentially secondary and tertiary businesses. Although ALP loans are non-conforming to traditional SBA 7(a) loans, they bear similar characteristics (loan amortization terms, personal guarantee requirement and guarantors' credit score, borrower's time in business, etc.) and are underwritten by the Company in a manner consistent with the Company's SBA 7(a) loans. The reasons ALP loans do not conform to the SBA 7(a) program are primarily related to, among other things, loan size and the fact that the borrower or borrowers may be more liquid than in a typical SBA 7(a) loan and/or would fail the SBA 7(a) credit elsewhere test. In some cases, ALP borrowers opt for an ALP loan due to a preference in interest rate structure (ALP loans are fixed for 5 years, ...