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NEWTEK BUSINESS SERVICES, INC. FILES (8-K) Disclosing Entry into a Material Definitive Agreement, Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant, Financial Statements and Exhibits

July 1, 2014



ITEM 1.01 Entry Into a Material Definitive Agreement.

On July 1, 2014, Newtek Business Services, Inc. (the "Company") announced that it had entered into a Credit Agreement with Capital One, National Association ("Capital One"), dated as of June 26, 2014 (the "Credit Agreement"), pursuant to which Capital One provided the Company a $10 million term loan (the "Term Loan") and a $10 million revolving credit facility (the "Facility" and together with the Term Loan, the "Loans").

The Term Loan, which will be fully amortized over four years, will be used to refinance the Company's existing $10 million of mezzanine debt from a group of investors led by Summit Partners Credit Advisors, L.P., and the Facility will be used by the Company for general corporate purposes.

The outstanding balance of the Loans bears a variable per annum rate of interest equal to the rate of interest publicly announced from time to time by Capital One as its prime rate plus 2.5%. The Loans will mature on June 25, 2018 and may be prepaid at any time. The Loan will be secured by a lien on the Company's assets as well as those of the Company's principal subsidiaries other than its U.S. SBA lender, Newtek Small Business Finance, Inc.

The above description is a summary and is qualified in its entirety by the terms of the Credit Agreement, which is filed as Exhibit 10.1 to this Current Report on Form 8-K and is incorporated by reference herein.

A press release of July 1, 2014 announcing the Credit Agreement is included as Exhibit 99.1 to this Current Report on Form 8-K.

ITEM 2.03. Creation of a Direct Financial Obligation or an Obligation under an

Off-Balance Sheet Arrangement of a Registrant.



The information contained in Item 1.01 of this Current Report on Form 8-K is incorporated by reference herein.

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Item 9.01. Financial Statements and Exhibits.

(d) Exhibits. Exhibit Number Description 10.1 Credit Agreement by and between Newtek Business Services, Inc. and Capital One, National Association, dated as of June 26, 2014. 99.1 Press Release, dated July 1, 2014 announcing the Credit Agreement and the Loans.



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Source: Edgar Glimpses


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