An article on the on the PRNewswire talked about how Nexbank completed USD 54 million subordinated debt offering. On September 29, 2017, NexBank, a financial services firm based in Dallas announced the practical completion of a USD 54 million private placement of its fixed to floating rate subordinated notes to several high net worth investors and institutions. The intentions for these are to use the profits for general corporate reasons. With the closing, the firm has raised USD 283 million of equity and debt since 2016.
They are non-callable notes for five years and the maturity stated is 30 September 2027. They bear a fixed interest rate of 6.375% for a total of five years, as well as a floating rate using a spread above the then current 3-month LIBOR of 458.5 basis points. Kroll Bond Rating Agency gave these notes an investment grade rating of BBB- with a robust outlook. It qualifies as Tier 2 capital under applicable capital regulations.
Sandler O’Neill & Partners, L.P were the sole placement agents for the private provision of the notes. The arrangement was closed on September 19, 2017. The records were not registered under the Securities Act and might not be sold or on offer in the US not present registration or an exemption application from the registration needs.
About the NexBank
It is a financial services firm offering services to clients through three core businesses. They include Mortgage banking, Commercial banking, and Institutional Services. The firm provides banking services as well as customized financial services primarily to financial institutions, institutional clients, and corporations around the globe as well as middle market companies, huge companies, and real estate investors. As of June 30, 2017, NexBank had USD 6.4 billion in assets.
The company’s excellent leadership has helped it remain at par with the leading financial institutions. Its executive management group utilizes the industry expertise, and high focus to serve the client in providing leading financial services capabilities to institutional, corporate, as well as individual customers. James Dondero the president, Co-founder of Highland Capital Management, as well as the company’s directors bring broad leadership and management experience as well as a commitment to the success of the business.