NewtekOne, Inc. 8.500% Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock, Series B

NewtekOne, Inc. 8.500% Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock, Series B is a preferred equity security designed to enhance NewtekOne’s capital base and support its strategic financial objectives. This asset offers holders a fixed 8.500% annual dividend rate through October 1, 2030, after which the rate resets based on the prevailing five-year U.S. Treasury rate plus a predetermined spread, providing adaptability to future interest rate environments. The dividends are non-cumulative, meaning missed payments are not owed in subsequent years, and the stock is perpetual, with no set maturity date. The Series B Preferred plays an intermediary role on the company’s balance sheet: ranking senior to common equity in dividends and liquidation, but subordinate to debt. Issued in $1,000 liquidation preference units as part of a 2,000,000 depositary share offering, it significantly increased NewtekOne’s tier one capital ratio and strengthened overall financial stability. Proceeds from the issue are allocated toward investments, debt repayment, and general corporate purposes, highlighting its importance as a financial tool for both company growth and investor income generation.