Financial services provider, NexBank initiated a private offering for subordinate notes that closed on September 19th, 2017. The five-year non-callable notes mature on September 30th, 2027. For the first five years, the notes have a 6.375% fixed interest after which a floating rate is applicable depending on the then three-month LIBOR which was at 458.5 basis points. NexBank targeted particular high net and institutional investors. The placement agent that oversaw the offering was Sandler O’Neill and Partners. The Kroll Bond Rating Agency gave the notes a BBB- investment rating plus a positive outlook. As per the capital regulation rules, the notes fall under the Tier 2 capital.
Nexbank Capital revealed that the transaction raised $54 million. The money will help support general corporate operations. Since 2016, NexBank capital has raised about $283 million through debt and equity financing. The Dallas-based bank’s principal business segments are institutional services, mortgage banking, and commercial banking. The retail banking arm of NexBank offers SBA and commercial loans while the mortgage lending function provides correspondent and wholesale lending and warehouse lending.
NexBank supports financial institutions through providing depository services, revolving line of credit, loan participation, and holding-company term loans. Individual clients can access services such as mortgages, savings, and checking. Commercial clients can obtain short-term funding for operational expenses, working capital, and other recurring needs. Long-term financing is available for customers looking to fund acquisitions, make capital investments, or refinance other debts. With the SBA loans of up to 5 million dollars and a repayment period of 25 years, customers can undertake significant projects such as construction. NexBank also offers third-party arrangements for senior secured loans in near-investment grade and in-investment grade corporate credit. Other services available include treasury management, commercial real estate lending, public fund depository, investment banking, real estate advisory and agency services.
Over the years, the bank has committed to providing reliable, timely and quality services to enable its clients to realize long-term growth. NexBanks primary objective is to deliver unique value to everybody. The experienced professionals at NexBank help customers access customized solutions. As at June 30th, 2017, the NexBank’s assets are worth $6.4 billion.