NexBank has Secured $54 Million Through a Private Debt Offering
NexBank has completed a subordinated debt offering worth $54 million. That brings the amount of debt issued by the Dallas based bank to $283 million since 2016. The issue attracted institutional investors as well as high net worth parties.
The design of the bond calls for a 6.375% fixed interest rate to apply for the first five years. After that, the interest rate will become a floating rate to be determined using a spread above the prevailing LIBOR (London Interbank Offered Rate) plus 458.5 basis points. The bonds are non-callable for five years, and their maturity date is September 30th, 2027.
This latest debt issue by NexBank was assigned a triple B (BBB) rating by KBRA (Kroll Bond Rating Agency). This stable score qualifies the $54 million raised as part of NexBank’s Tier 2 capital. The bank will make use of the proceeds from the offering to tend to general corporate functions. Sandler O’Neil & Partners distributed this private offering, which closed on September 19th, 2017.
NexBank Capital, Inc., headquartered in Dallas, Texas, is a financial services company. Founded in 1922, the company through its subsidiaries offers banking products and services in three primary areas:
- Institutional Banking
- Mortgage Banking
- Commercial Banking
The company’s customers are a variety of financial institutions, large and mid-sized corporations, and real estate investors.
Experienced executive management is ably guiding NexBank which explains the bank’s success. That smart leadership begins with Chairman James Dondero. Mr. Dondero is the President and Co-founder of Highland Capital Management. Supported by a host of directors with years of banking industry expertise, Mr. Dondero is sure to steward NexBank to more significant achievements.
In September 2017 NexBank reported assets of $7.6 billion, customer deposits of $6.9 billion, and $81.5 million in net income. Three branches within Dallas generated these results. Making NexBank the fourth largest bank in Dallas, and the 11th biggest bank in the state of Texas.