NEWTEK BUSINESS SERVICES CORP. (NASDAQ:NEWT) Files An 8-K Submission of Matters to a Vote of Security Holders
ITEM 5.07. Submission of Matters to a Vote of Security Holders.

On July 26, 2018, Newtek Business Services Corp. (the “Company”) held a Special Meeting of Shareholders (the “Special Meeting”). Set forth below are the proposals considered at the Special Meeting, as described in detail in the Registrant’s definitive proxy statement for the Special Meeting as filed with the Securities and Exchange Commission on June 13, 2018 (the “Special Meeting Proxy”). At the Special Meeting, the Registrant’s shareholders approved Proposals 1, 2 and 4, and did not approve Proposal 3, each as described in the Special Meeting Proxy. A total of 18,742,425 of the Company’s outstanding shares of Common Stock were entitled to vote at the Special Meeting. The tabulation of the voting at the Special Meeting were:

Proposal 1: The Company’s shareholders approved a proposal to authorize flexibility for the Company, with approval of its Board of Directors, to sell shares of its common stock (during the next 12 months) at a price below its then current net asset value per share subject to certain conditions as set forth herein (including that the cumulative number of shares sold does not exceed 20% of its then outstanding common stock immediately prior to each such sale):

ALL VOTES:

VOTES BY NON-AFFILIATED PERSONS:

Proposal 2: The Company’s shareholders approved a proposal to reduce the Company’s required minimum asset coverage ratio from 200% to 150%, which, if approved, will have the effect of expediting the Board’s prior action permitting the Company to be subject to 150% Asset Coverage:

Proposal 3: The Company’s shareholders did not approve a proposal to approve an amendment to the Company’s Articles of Amendment and Restatement to allow the Company’s shareholders to amend the Company’s bylaws:

Proposal 4: The Company’s shareholders approved a proposal to adjourn the Meeting, if necessary or appropriate, to solicit additional proxies:

Because there were no routine proposals presented at the meeting, there were no broker non-votes with respect to any of the proposals.

Item 8.01. Other Events.

On April 27, 2018, the Company announced that its board of directors, including a “required majority” (as such term is defined in Section 57(o) of the Investment Company Act of 1940 (the “1940 Act”)) of the Board, approved application to the Company of the asset coverage requirements set forth in Section 61(a)(2) of the 1940 Act, as modified by the Small Business Credit Availability Act. As a result, the Company’s asset coverage requirements for senior securities were to change from 200% to 150%, effective April 27, 2019. However, as a result of the shareholder approval of Proposal 2 at the Special Meeting, effective July 27, 2018, the asset coverage ratio under the 1940 Act applicable to the Company will be decreased from 200% to 150%, permitting the Company to incur additional leverage.

On July 30, 2018, the Company issued a press release announcing that shareholders of the Company had approved the application of the reduced asset coverage requirements, as set forth above.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits.

Newtek Business Services Corp. Exhibit
EX-99.1 2 specialmeeting2018pressrel.htm EXHIBIT 99.1 Exhibit Exhibit 99.1         Newtek Business Services Corp. Announces Shareholder Approval to Reduce its Asset Coverage Requirement to 150%Lake Success,…
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About NEWTEK BUSINESS SERVICES CORP. (NASDAQ:NEWT)

Newtek Business Services Corp. is a non-diversified closed-end management investment company. The Company is engaged in non-bank lending providing a range of business services and financial products under the Newtek brand to the small- and medium-sized business (SMB) market. Its products and services consist of Business Lending, Electronic Payment Processing, Managed Technology Solutions (Cloud Computing), e-commerce, Accounts Receivable Financing, The Secure Gateway, The Newtek Advantage, personal and commercial Insurance Services, Web Services, Data Backup, Storage and Retrieval, and Payroll Solutions. The Company offers services along with its controlled portfolio companies. The Company’s portfolio consists of guaranteed and unguaranteed non-affiliate loan investments that are through its small business finance platform.