NexBank Capital Inc. concluded a capital raising exercise a month ago that was spearheaded by Sandler O’Neill & Partners L.P., the firm that acted as the placement agent. The Dallas-based financial services firm managed to raise $54 million bringing total capital raised since last year to $283 million. The amount comprises of both equity and debt. The company cited general operations spending as the main area where the raised money will be channeled.
Last month’s activity involved private placement of its subordinated notes that a carry fixed to floating rate. The company targeted high net worth investors and organizations. The notes placed have a maturity period of ten years specifically on 30th September 2027. The first five years are fixed at a rate of 6.375 percent after which they will become callable. After the five years, the three-month London Interbank Offered Rate (LIBOR) of 458.5 basis points at that time will determine the floating rate.
Following the appropriate capital regulations, the notes fall under the category of Tier 2 capital. Better Business Bureau (BBB) gave the notes a rate of the investment grade. Kroll Bond Rating agency stamped a stable outlook on the notes. The notes may, however, not be sold or offered in the country as they are not registered under the Securities Act.
NexBank Capital Inc. is an influential financial services organization built on customer value. The firm, which is located in Dallas, Texas, understands that each client’s needs are unique. In this breath, it is committed to providing tailor-made financial services to each one of them. The firm’s mission is to ensure that the clients get value for all its services. Under the good leadership of the Chairman, James Dondero, NexBank has stood true to its mission over the years since its inception in 1921.
NexBank Capital Inc. disperses its services under three main categories. They are commercial banking, mortgage banking, and institutional services. The firm has clients spread across the United States who include financial institutions, corporate, institutions, and high net worth individuals. NexBank Capital Inc is a member of the Federal Deposit Insurance Corporation (FDIC).