NexBank’s Private Placement

NexBank Inc, a notable financial services company based in Dallas recently made public the successful completion of its private placement amounting to $54 million. This is a private placement of its fixed-to-floating rate subordinated notes that goes to various high end net and institutional investors.

Through this move, NexBank hopes to make use of the proceeds to perform general corporate purposes. Notably, this closing has seen Nexbank Inc. raise $283 million of equity and debt since 2016. From the gathered information, the notes are meant to be non-callable for at least five years and has a stated maturity date set for September 30, 2027. The notes will bear a fixed interest rate of 6.375% for five years. This will then be followed by a floating rate that will be based on the spread above the three-month LIBOR of 458.5 basis points that will then be trending.

Notably, the notes have acquired an investment grade rating of BBB. This is coupled by the fact that Kroll Bond Rating Agency has given it a stable outlook. This means that under the applicable capital regulations, it qualifies as a tier 2 capital.

During the notes’ private offering, Sandler O’neil & Partners stood in as the sole placement agent. This offering came to an end on September 19, 2017.

About Nexbank Capital Inc.

NexBank Capital is a financial services company that offers mortgage banking, commercial banking and institutional services to financial institutions and institutional clients. Its other clientele includes real estate investors, large corporations and middle market companies. The company hopes that through its commitments to clients and industry leadership, it will deliver uncommon value at every given opportunity, reports

NexBank’s Leadership mission, through its executive management team, hope to combine a strong focus on customer service and industry expertise to ensure that it offers unrivaled financial services. The company is under the leadership of James Dondero, the current chairman of Highland management Capital. Together with his executive team, they hope to take NexBank to greater heights in the financial sector. With the breath of management from the bank’s directors this is expected to be realized much sooner than later.


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