Nexbank Capital, a Dallas-based financial services firm, was proud to recently announce that they were able to allocate $54 million in private placement of their fixed-to-floating subordinate rate notes. The proceeds of this offering are going to be used for general corporate expenses.
Indeed, Nexbank Capital has been very successful with this. They have been able to raise over $280 million from this offering since 2016. There are some important characteristics many should know about these notes. First of all, they are non-callable for five years and they have a maturity of September 30, 2027.
The notes will bear interest at a fixed rate of %6.375 for five years and then will be at a floating rate dependent upon the current three-month LIBOR spread. These notes have proven to have a stable track record, having been assigned an investment grade of BBB- by the Kroll Bond Rating Agency. They also qualify as Tier 2 capital under current applicable capital regulations.
The private offering of the notes was administered by Sandler O’Neill & Partners, L.P and was finalized on September 19, 2017. It is important to note that these notes are not registered under the U.S. securities act. Thus, if they are sold they have to be done under the auspices of a registration party or an organization that would permit an exemption under those rules.
The utmost in professionalism is what sets this security offering apart from others. It all begins with a solid company as a backing. Nexbank knows what it is like to offer securities like this and they know how to make their clients’ wealth acquisition dreams a success. Nexbank Capital, Inc., is a financial services company that has made its mark by improving investments with three core businesses: that of commercial banking, mortgage banking, and institutional services.