NexBank, one of Dallas largest private financial banks, has recently announced the successful closure of a $54 Million subordinated debt offering. This comes at a time when the financial provider is looking for funding to help it carry out its corporate functions. The $54 million worth fixed-to-floating interest rate subordinated notes were only made available to a selected number of wealthy investors and institutions.
According to the bank, the subordinate notes are non-callable in nature for five years with their maturity period slated for 30th September 2017. To entice its investors, the bank offered a fixed interest rate of 6.375% for the five-year duration, and after that, it will apply a floating rate. With the reputation of the bank in the market and the ratings on the notes, investors have no reason to be worried about the cash. According to Kroll Bond Rating Agency, the NetbBank’s subordinate debt notes have a rating of BBB with an impressive outlook. The agency points out that according to the applicable capital laws, the subordinated notes also pass as Tier 2 capital.
During the offering period, the bank used Sandler O’Neill & Partners, L.P. as their only placement for the notes. The other intriguing fact about these notes is that they cannot be transferred, offered, or sold anywhere in the U.S, as they have not been listed under the Securities Act.
About NexBank Capital, Inc.
NexBank Capital, Inc. is a premier financial service provider offering a number of services to Dallas residents and Americans at large. This financial institution was founded in 1934 and has its headquarters in Dallas, Texas. As of 2017, NexBank was ranked at position 12 of the largest banks in Texas State and 179 overall with a population of 87 staff at its 3 locations.
This financial institution offers three-core business services that include; mortgage banking, commercial banking, and institutional services. By customizing these services, the bank has been able to meet the banking and financial needs of its customers at personal, institutional, and corporation levels. These exemplary services have helped the bank earn a health rating of A.