High Investor Confidence Leads To Oversubscription Of A Bank’s Senior Notes

Recently, NexBank Capital reported that its senior unsecured noted were oversubscribed after the management made the decision to reopen its initial offering. The total amount raised from the transaction was $155 million, $80 million of which had been raised from the second phase.

According to the information released by the firm, the notes will mature on March 16, 2026. The interest rates on the notes will be fixed at 5.50 percent for the first five years, after which the notes are callable. From March 15, 2021, the interest rate on the notes will be determined based on a spread above the three-month LIBOR of 435.5 basis points. Kroll Bond Rating Agency has signed an investment grade rating of BBB on the notes.

The money generated from the transaction will use used by NexBank Capital to repay specified debts. The capital will also be used to finance the company’s general corporate purposes. The notes were floated to the public through Sandler O’Neill & Partners.

Speaking during the announcement, NexBank Capital’s president and CEO, John Holt said that the over subscription of the placement is an indication of the strong investor confidence in the company. He stated that the firm had a formidable long-term business strategy that would result in enhanced growth and increase its market share. He noted that the business had enjoyed many years of stability and strong financial performance. This can be ascertained by Kroll Bond Rating Agency’s decision to award the company a BBB rating. This information was originally mentioned on PRNewswire .

Matt Siekielski believes that the company’s core businesses and strategies were central to the success of the transaction. In the last 12 months, the company had been able to raise over $200 million. The capital has was sourced from a broad range of institutional investors. Matt is the firm’s executive vice president and COO.

NexBank Capital is a financial services company. The entity offers its services through three key business units. They are mortgage banking, commercial banking, and institutional services. The banks offer its banking services to financial institutions, institutional clients, and corporations across the United States. It also provides personal and online banking services. As of December 31, 2016, the company’s assets were valued at over $4.6 billion. NexBank’s board of directors comprises notable and experienced leaders such as James Dondero who is its chairman.

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