Bank Raises Capital Through Placement of Senior Notes

NexBank Capital, a financial services company based in Dallas, is increasing the amount of its issued senior unsecured notes by $25 million. The total issue now has increased to $75 million. Most of these raised funds will be given to its banking subsidiary for the purpose of increasing growth.

The notes will mature in 2026 and are non-callable until 2021. This private placement has fixed interest rate of 5.5% for the first five years, and then a variable rate based on 435.5 basis points spread over 3-month LIBOR.

The issue is currently rated BBB by Kroll Bond Rating Agency, an upgrade from previous BBB-. “The additional participation in the senior notes offering and recent Kroll rating upgrades reflect the financial community’s support of NexBank’s strength and continued growth,” stated John Holt, President and CEO of NexBank Capital.

These senior unsecured notes, however, are not available to the United States-based residents as the company hasn’t registered them under the Securities Act. In the past six months, NextBank Capital has raised $100 million through a mix of debt and equity offering.

NexBank focuses on three core areas: Commercial Banking, Investment Banking, and Mortgage Banking. Commercial Banking division provides loans, correspondent banking, agency services, credit services, and treasury management to its institutional clients.

Investment Banking division provides advisory on mergers and acquisitions, recapitalization and restructuring, and corporate finance among others. Meanwhile, Mortgage Banking division offers wholesale lending.

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