v3.26.1
BORROWINGS
 6 Months Ended
Jun. 30, 2026
Debt Disclosure [Abstract]  
BORROWINGS
NOTE 11—BORROWINGS:

At June 30, 2026 and December 31, 2025, the Company had borrowings composed of the following:
June 30, 2026December 31, 2025
CommitmentsNet Carrying AmountWeighted Avg Interest RateCommitmentsNet Carrying AmountWeighted Avg Interest Rate
Secured Borrowings:
Notes payable - Securitization Trusts1,2
$106,573 $105,099 6.27 %$128,827 $127,050 6.42 %
NMS Goldman Facility2
95,000 88,009 9.16 %95,000 88,352 9.42 %
SPV I Capital One Facility2,3
— — — %100,000 16,085 6.59 %
SPV II Deutsche Bank Facility2,4
— — — %170,000 169,146 7.32 %
SPV III One Florida Bank Facility2
35,000 28,116 7.75 %35,000 33,259 7.75 %
NH6/SPV IV D2 Facility2
20,000 19,534 11.50 %— — — %
FHLB Advances14,000 6,310 2.65 %14,000 7,349 2.75 %
Total Secured Borrowings
270,573 247,068 7.79 %542,827 441,241 7.82 %
Unsecured Borrowings2:
2026 Notes5,7
— — — %95,000 95,000 5.50 %
2027 Notes6
50,000 49,982 8.125 %50,000 49,967 8.125 %
  2028 Notes40,000 39,247 8.00 %40,000 39,073 8.00 %
  2029 Notes
71,808 70,321 8.50 %71,808 70,066 8.50 %
2029 Notes
75,000 73,393 8.625 %75,000 73,150 8.625 %
2030 Notes5
52,000 51,463 8.375 %52,000 51,391 8.375 %
2031 Notes7
7,922 7,836 8.50 %— — — %
2033 Notes8
15,000 14,882 8.375 %— — — %
Total Unsecured Borrowings
311,730 307,124 8.379 %383,808 378,647 7.35 %
Total Borrowings
$582,303 $554,192 8.12 %$926,635 $819,888 7.53 %
At June 30, 2026 and December 31, 2025, outstanding borrowings that are presented net of deferred financing costs consisted of the following:
June 30, 2026December 31, 2025
Principal balanceUnamortized deferred financing costs
Net carrying amount1
Principal balanceUnamortized deferred financing costs
Net carrying amount1
Secured Borrowings:
Notes Payable - Securitization Trusts1,2
$106,573 $(1,474)$105,099 $128,828 $(1,778)$127,050 
NMS Goldman Facility2
89,325 (1,316)88,009 89,775 (1,423)88,352 
SPV I Capital One Facility2,3
— — — 16,600 (515)16,085 
SPV II Deutsche Bank Facility2,4
— — — 169,791 (645)169,146 
SPV III One Florida Bank Facility2
28,149 (33)28,116 33,300 (41)33,259 
NH6/SPV IV D2 Facility2
20,000 (466)19,534 — — — 
Unsecured Borrowings:
2026 Notes (5.50%)5,7
— — — 95,000 — 95,000 
2027 Notes (8.125%)6
50,000 (18)49,982 50,000 (33)49,967 
2028 Notes (8.00%)
40,000 (753)39,247 40,000 (927)39,073 
2029 Notes (8.50%)
71,808 (1,487)70,321 71,808 (1,742)70,066 
2029 Notes (8.625%)
75,000 (1,607)73,393 75,000 (1,850)73,150 
2030 Notes (8.375%)5
52,000 (537)51,463 52,000 (609)51,391 
2031 Notes (8.50%)7
7,922 (86)7,836 — — — 
2033 Notes (8.375%)8
15,000 (118)14,882 — — — 
1    Non-recourse.
2    Net of deferred financing costs.
3    On March 25, 2026 the SPV I Capital One Facility was fully repaid and terminated.
4    On May 20, 2026, the SPV II Deutsche Bank Facility was fully repaid and terminated.
5    On October 21, 2025, the Company entered into agreements with two institutional investors that were existing holders of the Company’s 2026 Notes to exchange $20.0 million in total principal amount of the Company’s 2026 Notes held by such investors for an equal principal amount of the Company’s 2030 Notes. One of the investors also agreed to purchase $2.0 million in newly issued additional principal amount of the Company’s 2030 Notes. The transactions were conducted pursuant to exemptions from the registration requirements of the Securities Act. On February 1, 2026, the 2026 Notes matured.
6    Effective December 11, 2024, the Company entered into the Amendment and Exchange Agreements with each of the holders of the 2025 8.125% Notes, pursuant to which the Company and the holders of the 2025 8.125% Notes agreed to exchange the 2025 8.125% Notes for the 2027 Notes, effecting amendments solely to (i) extend the February 1, 2025 maturity date of the 2025 8.125% Notes to the new maturity date of February 1, 2027 (the “New Maturity Date”) and (ii) provide that the 2027 Notes will be redeemable in whole, but not in part, at any time, at the option of the Company, from November 1, 2026 to the New Maturity Date, at a redemption price of 100% of the outstanding principal amount being redeemed plus any accrued but unpaid interest, to but excluding the redemption date.
7    On January 28, 2026, $7.9 million of 2026 Notes were tendered and exchanged for 2031 Notes in response to the Company’s offer to exchange the 2026 Notes for newly issued 2031 Notes. The 2031 Notes bear interest at a rate of 8.50% per year payable quarterly on February 1, May 1, August 1 and November 1 of each year, will mature on February 1, 2031. On February 1, 2026, the Company repaid the remaining $87.1 million aggregate principal amount of 2026 Notes outstanding on the 2026 Notes maturity date.
8    On February 18, 2026, the Company completed an exempt offering of $15.0 million aggregate principal amount of its 8.375% Notes due 2033. The 2033 Notes will mature on March 1, 2033. The 2033 Notes may be redeemed by the Company, at its option, at a make-whole price at any time prior to January 1, 2033, or at a price equal to 100% of the principal amount of the 2033 Notes to be redeemed, plus accrued and unpaid interest, if any, thereafter. The 2033 Notes bear interest at a rate of 8.375% per year payable semiannually on February 1 and August 1 each year, beginning on August 1, 2026.
2033 Notes

On February 18, 2026, the Company completed an exempt offering of $15.0 million aggregate principal amount of its 8.375% Notes due 2033 (the “ 2033 Notes” and the "Offering"). The Offering was consummated pursuant to the terms of a purchase agreement (the “Purchase Agreement”) dated February 17, 2026 between the Company and an institutional accredited investor (the “Purchaser”). The Purchase Agreement provided for the Note to be issued to the Purchaser in a private placement in reliance on Section 4(a)(2) of the Securities Act of 1933, as amended (the “Securities Act”). The Company relied upon this exemption from registration based in part on representations made by the Purchaser. The 2033 Notes have not been registered under the Securities Act and may not be offered or sold in the United States absent registration or an applicable exemption from registration. The net proceeds from the sale of the 2033 Notes were approximately $14.9 million. The Company intends to use the net proceeds from the sale of the 2033 Notes for general corporate purposes.

The 2033 Notes will mature on March 1, 2033. The 2033 Notes may be redeemed by the Company, at its option, at a make-whole price at any time prior to January 1, 2033, or at a price equal to 100% of the principal amount of the 2033 Notes to be redeemed, plus accrued and unpaid interest, if any, thereafter. The 2033 Notes bear interest at a rate of 8.375% per year payable semiannually on February 1 and August 1 each year, beginning on August 1, 2026. The 2033 Notes will be the Company’s direct unsecured obligation and ranks pari passu, or equal, with all outstanding and future unsecured unsubordinated indebtedness issued by the Company. The 2033 Notes will be effectively subordinated to the Company’s existing and future secured indebtedness to the extent of the value of the assets securing such indebtedness, and structurally subordinated to all existing and future indebtedness and other obligations of any of the Company’s subsidiaries. At June 30, 2026, the Company was in compliance with all covenants related to the 2033 Notes.
2031 Notes
On January 28, 2026, the Company closed on its offer to exchange any and all of its 2026 Notes for its newly issued 2031 Notes, and thereby exchanged $7.9 million in aggregate principal amount of outstanding 2026 Notes for an equal principal amount of 2031 Notes. The 2031 Notes bear interest at a rate of 8.50% per year payable quarterly on February 1, May 1, August 1 and November 1 of each year, will mature on February 1, 2031, and may be redeemed at the Company’s option, in whole or in part at any time or from time to time on or after February 1, 2028 at a redemption price of 100% of the outstanding principal amount of the 2031 Notes to be redeemed plus accrued and unpaid interest payments otherwise payable thereon for the then-current quarterly interest period accrued to, but excluding, the date fixed for redemption. The 2031 Notes trade on the Nasdaq Global Market under the trading symbol “NEWTO.” At June 30, 2026, the Company was in compliance with all covenants related to the 2031 Notes.
2026 Notes

In January 2021, the Company closed a public offering of $115.0 million aggregate principal amount of 5.50% Notes due 2026. The sale of the 2026 Notes generated proceeds of approximately $111.3 million, net of underwriter's fees and expenses. On October 21, 2025, the Company entered into agreements with two institutional investors that were existing holders of the Company’s 2026 Notes to exchange $20.0 million in total principal amount of the Company’s 2026 Notes held by such investors for an equal principal amount of the Company’s 2030 Notes. The transactions were conducted pursuant to exemptions from the registration requirements of the Securities Act. On January 28, 2026, $7.9 million of 2026 Notes were tendered and exchanged for 2031 Notes in response to the Company’s offer to exchange the 2026 Notes for newly issued 2031 Notes. Refer to 2031 Notes above for further detail.

On February 1, 2026, the Company repaid the remaining $87.1 million aggregate principal amount of 2026 Notes outstanding on the 2026 Notes maturity date.
SPV I, II, III, and IV Facilities
Newtek ALP Holdings’ subsidiaries (our indirect subsidiaries) SPV I, II, III, and IV maintain credit facilities with third party lenders. SPV I had a Capital One facility with maximum borrowings of $100.0 million. Capital One’s commitment was scheduled to terminate in July 2027, with all amounts due under the SPV I Facility maturing in August 2028. On March 25, 2026 the SPV I Capital One Facility was fully repaid and terminated. SPV II had a Deutsche Bank facility with maximum borrowings of $170.0 million. The Deutsche Bank Facility was scheduled to mature in December 2027. On May 20, 2026 the SPV II Deutsche Bank Facility was repaid and terminated. SPV III has a One Florida Bank facility with maximum borrowings of $35.0 million. One Florida Bank’s facility matures in August 7, 2028. At June 30, 2026, total principal owed by SPV III was $28.1 million. On April 28, 2026, NH6 and SPV IV (as co-borrowers) entered into a Term Loan Agreement with D2 Asset Services, LLC with maximum borrowings of $20.0 million and a maturity in April 28, 2029. At June 30, 2026, total principal owed by NH6 and SPV IV (as co-borrowers) was $20.0 million.
Total interest expense including unused line fees and amortization of deferred financing costs related to borrowings for the three and six months ended June 30, 2026 and 2025 were as follows:
Three Months EndedSix Months Ended
June 30, 2026June 30, 2025June 30, 2026June 30, 2025
Total interest expense$12,731 $13,238 $26,476 $27,350