NEW YORK, Dec. 28, 2015 (GLOBE NEWSWIRE) -- Newtek Business Services Corp. (“Newtek” or the “Company”) (NASDAQ:NEWT), an internally managed business development company (“BDC”), today announced the results of the stockholder election in connection with the special dividend. Newtek’s stockholders’ elections were tabulated and approximately 87% of the shares outstanding elected to receive the special dividend in cash and 13% elected shares of the Company’s common stock (“Shares”). Because the total amount of cash payable is limited to 27% of the aggregate amount of the dividend, 27% of the special dividend will be paid in cash and 73% will be paid in Shares. Stockholders who have elected to receive cash will receive $0.84 per share, with the balance paid in Shares at the volume-weighted average price of $13.48 per share. As a result, on December 31, 2015, the Company will issue approximately 1.8 million Shares to stockholders of record as of November 18, 2015. At December 31, 2015, it is expected that the 1.8 million newly issued Shares will increase the Company’s net asset value by approximately $24.8 million, as well as increase the Company’s total market capitalization. The Company’s total Shares outstanding as of December 31, 2015, will be approximately 14.5 million Shares.
Update Regarding 2015 Fourth Quarter Dividend
Based on the approximate count of 14.5 million Shares outstanding at December 31, 2015, the Company is confirming its 2015 fourth quarter cash dividend(1) of $5.8 million, or $0.40 per Share payable on January 19, 2016 to stockholders of record as of January 7, 2016. In addition, the Company is confirming that its 2015 annual dividend will equal $20.9 million, or $1.76 per Share, which is consistent with prior guidance. It is important to note that the additional Shares issued in connection with the special dividend will receive the 2015 fourth quarter dividend if the Shares are held as of the January 7, 2016 record date.
(1) The dividend will be paid in cash or Shares through participation in the Company's dividend reinvestment program (the “DRIP”), at the election of stockholders. The DRIP, which has been suspended in connection with the payment of the special dividend, will be reinstated for the fourth quarter dividend.
About Newtek Business Services Corp.
Newtek Business Services Corp., The Small Business Authority®, is an internally managed BDC, which along with its controlled portfolio companies, provides a wide range of business services and financial products under the Newtek® brand to the small- and medium-sized business (“SMB”) market. Since 1999, Newtek has provided state-of-the-art, cost-efficient products and services and efficient business strategies to over 100,000 SMB accounts across all 50 states to help them grow their sales, control their expenses and reduce their risk.
Newtek’s products and services include: Business Lending, Electronic Payment Processing, Managed Technology Solutions (Cloud Computing), eCommerce, Accounts Receivable Financing, The Secure Gateway, The Newtek Advantage™, Insurance Services, Web Services, Data Backup, Storage and Retrieval and Payroll.
The Small Business Authority® is a registered trade mark of Newtek Business Services Corp., and neither are a part of or endorsed by the U.S. Small Business Administration.
Note Regarding Forward Looking Statements
This press release contains certain forward-looking statements. Words such as “projected,” “believes,” “plans,” “intends,” “expects,” “projects,” “continuing”, “potentially”, “anticipates,” and “future” or similar expressions are intended to identify forward-looking statements. All forward-looking statements involve a number of risks and uncertainties that could cause actual results to differ materially from the plans, intentions and expectations reflected in or suggested by the forward-looking statements. Such risks and uncertainties include, among others, intensified competition, operating problems and their impact on revenues and profit margins, anticipated future business strategies and financial performance, anticipated future number of customers, business prospects, legislative developments and similar matters. Risk factors, cautionary statements and other conditions, which could cause Newtek’s actual results to differ from management’s current expectations, are contained in Newtek’s filings with the Securities and Exchange Commission and available through http://www.sec.gov/.
For more information, please visit the following websites:
Newtek Business Services Corp. http://www.thesba.com Barry Sloane Chairman and CEO 212-356-9500 email@example.com Investor Relations Contact: Jayne Cavuoto Telephone: (212) 273-8179 / firstname.lastname@example.org Public Relations Contact: Simrita Singh Telephone: (212) 356-9566 / email@example.com
Source:Newtek Business Services Corp.