A $54 million private placement was recently completed by NexBank Capital, Inc. In short, the financial services institution privately placed certain notes to its investors of high net worth and a variety of institutions. NexBank Capital, Inc., of Dallas, Texas, will use the proceeds for general purposes within the corporation. The notes within the deal that will be placed are fixed-to-floating rate subordinate ones bearing a fixed interest rate of 6.375% for the first five years and will be moved to a floating categorization afterwards, until meeting maturity in 2027. The closing of this deal contributes to $283 million worth of equity and debt for Nexbank since 2016.
The notes in this offering have been rated BBB- in investment grade with a stable ranked outlook, qualifying under typical and applicable capital regulations as Tier 2. They will neither be available to be offered or sold in the U.S. absent registration or any exemptions that would be applicable, nor will they be registered under the U.S. Securities Act. The sole placement agent for the notes’ private offering was Sandler O’Neill & Partners, L.P.
NexBank is based out of Dallas, Texas, but has spread nationally since its founding in 1934. The success and growth of the company have led it to market rates that are currently four times the average national rates. It is currently the 158th largest bank in the entire United States, and the 10th largest in Texas. Nexbank is consistently involved in positive moves when it comes to raising capital, and offers all customers and individuals a transparent look into all of the inner workings of the company.
NexBank is also widely known for their work within the community; in particular, sponsorship and in-house volunteer work in programs to increase financial literacy for students that truly need it, who can benefit from the experience and education of NexBank’s employees. Considering its works for financial literacy education, particularly within neighborhoods with low income, NexBank Capital, Inc., recently received EverFi’s Financial Capability Innovation Award.