Newtek ALP Holdings, a subsidiary of NewtekOne Inc., has fully repaid the Capital One revolving credit facility in March 2026 and will terminate the Deutsche Bank facility by the end of April 2026. The two lines carried a combined balance of roughly $185 million at the end of 2025, and the repayment brings those balances to zero.
The repayment was funded by the company’s fourth asset‑backed securitization of Commercial‑Industrial Loan Association (C&I LA) loans, the NALP Business Loan Trust 2026‑1. This securitization, the 17th and largest of its kind for NewtekOne, provided the liquidity needed to retire the credit lines without taking on new debt.
By eliminating the $185 million of revolving credit, NewtekOne reduces its debt‑to‑equity ratio from 206.2% (December 2025) to a lower level and its debt‑to‑total‑capital ratio from 84.92% (March 2026). The reduction in leverage also cuts interest expense, improving the company’s overall debt profile and freeing capital for future lending or shareholder returns.
The move signals a strategic shift toward deposit‑funded lending. Newtek Bank, N.A. will now originate and fund C&I LA loans using its own deposits, a key element of the company’s evolution into a financial holding company. This transition reduces reliance on external borrowing and enhances control over the full customer relationship—from deposits to payments to lending.
While NewtekOne’s Q4 2025 earnings missed analyst expectations—EPS of $0.65 versus $0.68 expected and revenue of $73.33 million versus $80.01 million expected—the repayment of the credit lines strengthens the firm’s balance sheet. The improved capital position supports the company’s growth strategy and may provide a foundation for future dividend increases or share buybacks.
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