Financial Institutions and Subordinated Debt Offerings Nexbank Capital

NexBank Capital, Inc. made headlines in the fourth quarter of 2017 when the company announced a $54 Million Subordinated Debt Offering. A subordinated debt offering is a type of security that is lower ranking than other types of securities. This offering has been placed privately for investors of significant financial status and select institutions.

 

In addition, this security is non-callable for 5 years with an interest rate just over 6%. Following the non-callable period, a floating interest rate will be assigned to the subordinated debt offering. The maturity date of the security is September of 2027. The notes currently have an investment score of “BBB-” and stability is predicted for the notes. Since 2016 Nexbank has secured over $280 million in debt and equity. The offering for the notes ended on September 19 of 2017. The placement agent for the notes was Sandler O’Neill & Partners. This offering in also significant because the notes can not be sold in the United States because they are not registered under the Securities Act.

 

NexBank Capital, Inc. specializes in institutional services, commercial banking and mortgage banking. As it relates to institutional services, Nexbank provides real estate advisory, investment banking and treasury management. Commercial banking offerings include commercial lending, credit services and commercial real estate lending. Mortgage banking services are inclusive of warehouse, wholesale, and correspondent lending. Nexbank also provides personal banking services including savings accounts, checking accounts and mortgages.

 

Nexbank was founded in 1934 and the company’s headquarters is located in Dallas, Texas. The company also has three branches in Dallas. Nexbank has assets totaling nearly $8 billion. In addition, the bank is a FDIC certified and has a health-score of “A”. Nexbank is among the 200 largest banks in the United States and it is the 11th largest bank in Texas. Although the bank is not as large as many other financial institutions, it has garnered a great deal of respect in recent years by providing customers and institutions with exceptional service. The company prides itself on having a customer focused approach to banking and financial services.

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