Increasing Senior Notes Brings Bank Success

A successful Dallas-based financial company recently announced that they have successfully completed the oversubscribed private placement of their senior unsecured notes. NexBank Capital, Inc. has reopened their first offering and raised another $80 million, creating an issuance of $155 million. These unsecured notes have a maturity date of March 16, 2026 and callability will be reached in 2021. The interest on these notes is at a fixed rate of 5.5 percent for five years, with a floating rate after that that is based on a spread of 435.5 basis points.

NexBank is planning to use the proceeds to repay certain debts and for general corporate purposes. The private offering of the notes was handled by Sandler O’Neill & Partners, L.P. This oversubscribed placement shows the confidence that investors have in the company and its business strategies. The President and CEO of NexBank John Holt believes that these additional funds will allow NexBank to continue to grow and increase their earnings substantially. He also believes that the company’s track record of strength and stability allows them to have a BBB rating from the Kroll Bond Rating Agency.

Executive Vice President and COO Matt Siekielski believes that this is just another accomplishment made by NexBank, as they continue to attract capital from a wide range of investors. As Siekielski points out, with this deal alone NexBank has raised more than $200 million in debt equity in one year, providing the necessary capital to grow NexBank.

NexBank has released their record level earnings, assets, deposits, and loans. As of the end of 2016, NexBank’s total assets reached more than $4.5 billion. This was a 71 percent growth rate in just a year, with total deposits totaling more than $3.2 billion and total loans equaling more than $2.8 billion. Return on average assets and equity went from more than 35 percent in 2015 to a little over 2 percent in 2016.

NexBank Capital, Inc. is a Texas financial services company that services millions of customers each year through its three main businesses. These institutional services, mortgage banking, and commercial banking services allow them to be one of the largest banks in the state, providing financial services to institutional clients, corporations, and financial institutions.

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