Company: NEWTP
Filing Date: 2025-11-18
Form Type: S-4
Source: 0001628280-25-052855
Chunk: 13

Company: NewtekOne, Inc.
Filing Date: 2025-11-18
Form: S-4
Chunk 13
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 the Company’s subsidiaries’ creditors.

The New Notes are exclusively the Company’s obligations and not those of the Company’s subsidiaries. The Company is a holding company that conducts substantially all of its operations through its bank and non-bank subsidiaries. As a result, its ability to make payments on the New Notes will depend primarily upon the receipt of dividends and other distributions from its subsidiaries. If the Company does not receive sufficient cash dividends and other distributions from its subsidiaries, it is unlikely that the Company will have sufficient funds to make payments on the New Notes.

The Company’s subsidiaries are separate and distinct legal entities. The Company’s subsidiaries have no obligation to pay any amounts due on the New Notes or to provide the Company with funds to pay the Company’s obligations, whether by dividends, distributions, loans or other payments. In addition, any dividend payments, distributions, loans or advances to the Company by the Company’s subsidiaries in the future will require the generation of future earnings by the Company’s subsidiaries and may require regulatory approval. There are various regulatory restrictions on the ability of Newtek Bank to pay dividends or make other payments to the Company, including those contained in Newtek Bank’s operating agreement with the OCC. See “Item 1. Business-Regulation and Supervision” in our 2024 Annual Report on Form 10-K incorporated by reference in this prospectus for a discussion of regulatory and other restrictions on dividend declarations. Limitations on the Company’s ability to receive dividends from its subsidiaries could have a material adverse effect on its liquidity and ability to pay dividends on its stock or interest and principal on its indebtedness.

In addition, the Company’s right to participate in any distribution of assets of any of its subsidiaries upon the subsidiary’s liquidation or otherwise will generally be subject to the prior claims of creditors of that subsidiary. Your ability as an investor in the New Notes to benefit indirectly from that distribution also will be subject to these prior claims.

The New Notes are not guaranteed by any of the Company’s subsidiaries. As a result, the New Notes will be structurally subordinated to all existing and future liabilities and obligations of the Company’s subsidiaries.

The Company and its subsidiaries may incur additional indebtedness that may adversely affect the Company’s ability to meet its financial obligations under the New Notes.

The terms of the Indenture and the New Notes do not limit the incurrence by the Company or its subsidiaries of additional indebtedness. The Company and its subsidiaries may incur additional indebtedness in the future, which could have important consequences to holders of the New Notes. For