NexBank Capital, out of Dallas, has just successfully finished a $54 million allocation of its private subordinated notes. The fixed to floating rate notes are going to select investors of high net worth, including some institutions. The company, a financial services firm, is going to use this money to apply it to corporate objectives. This marks a historic number of over $280 million raised in equity and debt for the company since only 2016.
The notes will have an interest rate of over 6.3%, and won’t be callable for 60 months, until 2027 when they fully mature. The floating rate is based upon the LIBOR 458.5 spread over 90 days. The BBB grade of the notes qualifies as Tier 2 capital from the Kroll Bond Rating Agency.
NexBank Capital, Inc. is a Dallas, Texas company that specializes in financial services. It has three main businesses: mortgage banking, institutional services, and commercial banking services. Its institutional clients are its main focus, for whom they provide customized services catered to the needs of each company they work with. This has allowed the company to achieve competition and rapid growth in the market place since their founding.
They offer institutional services that allow companies to manage their cash flow. For example, many commercial real estate investors need cash on hand to upkeep properties and invest in new opportunities. Nexbank extends funds through various financial services and packages to achieve this. They also offer depository lending. This gives access to capital when they otherwise wouldn’t qualify for it.
The cash position of NexBank has increased throughout the years. Their rating from the large banking agencies has improved as well. This means they can borrow capital at a reduced rate and extend the savings onto their clients, who can in turn grow their companies. They are also a member of FDIC.