The Bank Slate

INSIGHTS INTO THE BANKING INDUSTRY

Newtek files $500 million shelf registration

Newtek Business Services in Boca Raton, Fla., which recently bought a bank, has filed to raise up to $500 million by selling securities and issuing debt.

The company’s shelf registration includes common and preferred stock, depositary shares, subscription rights, warrants and debt securities. No timetable was set for any sales.

Newtek said would use the net proceeds from any sale “for general corporate purposes unless otherwise indicated in the prospectus supplement relating to a specific offering of securities.”

Newtek bought National Bank of New York City on Jan. 6 for $20 million. The company contributed $31 million of cash to the renamed Newtek Bank and units Newtek Business Lending and Small Business Lending.

Under an operating agreement with the Office of the Comptroller of the Currency, Newtek Bank must maintain a Tier 1 leverage ratio of at least 10% and a total risk-based capital ratio of at least 11.5%.

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