Newtek Business Services Inc. has closed on the sale of $23 million of non-guaranteed portions of SBA small business loans into a securitization trust.
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Guggenheim Securities handled the sale of the trust notes, advised Newtek and provided investment-banking services.
Newtek realized about $16 million in gross proceeds from the securitization, which it said would be principally used for making new loans and extinguishing Newtek Small Business Finance’s existing term loan with Capital One Bank.
Standard & Poor’s rated the notes AA.
Newtek is active in making U.S. SBA 7(a) loans, which can be real estate secured.
