The Dallas-based financial services institution, NexBank Capital, Inc made an announcement that it had successfully completed the private placement valued at $54 million of the bank’s fixed-to-floating notes to some high net worth institutional and individual investors. NexBank Capital is planning on using the proceeds from this offering on corporate engagements. The closing raised the debt to equity of NexBank Capital by $238 million.
The note will remain un-callable for a period of 5 years and their maturity date is September 30, 2027. They will be earning a fixed annual interest of 6.375 percent for the five years. Kroll Bond Rating Agency assigned the notes the BBB investment grade rating and also qualifies as Tier 2 capital as per the prevailing capital regulations. The position of the sole placement agent a the time of the notes private offering was occupied by Sandler O’Neill & Partners, L.p. The Securities Act does not recognize the notes, therefore, they cannot be sold or offered in the US absent registration.
NexBank Capital operates under three business segments, which are Institutional Services, Commercial Banking, and Mortgage Banking. It is committed to availing customized banking and financial services to corporations, institutional clients and financial institutions. Under commercial banking business, the company provides services such as commercial lending, commercial real estate lending, agency services, treasury management as well as credit services. The institutional services include investment banking, real estate advisory, services to financial institutions, and public funds management. NexBank Capital also provides customized depository services to mortgage servicers, commercial businesses, and financial institutions, to help them meet their transaction needs.
As of September 2018, NexBank total assets value was at $8.1 billion and has been growing steadily over the years. It is recognized as the fourth largest financial institution in Dallas, takes the 10th position in the whole of Texas and 158th position countrywide. It current lending limit is at $150 million. By the end of 2017, it had reached a mortgage banking volume of $6.1 billion.
It was founded in 1934 and currently, it has expanded to three locations, which are NextBank Ssb, the McKinney Branch, and Preston Centre Branch. NexBank Capital has a workforce of 89 employees who operate in various segments of the institution. The leaders of NexBank have combined its expertise with the commitment to customers in availing services to all clients. The employees offer timely services and are focused on helping clients secure financing for the growth of their operations.