The 54 million dollars subordinated debt offering.
On Sept 29, 2017, Nexbank announced its success in the transition of a $54 million private placements of its subordinate notes, fixed to a floating rate, to other institutions and big-time investors. The Dallas based financial institution plans to use the proceeds of these transactions to continue growing and expanding its corporate ventures. By the announcement, Nexbank had raised over 200 million dollars in debt and equity going back one year. These subordinated notes have a non-callable span of five years with their maturity expected in September 2027. Investors in these notes will experience a 6.375% fixed rate for the first five years and a floating rate after that will be designed according to the then three months LIBOR of 458.5. These notes have been categorized under the BBB investment grade rating and classify in Tier two capital under the applicable capital rules and regulations.
Under the offering that closed only ten days before the announcement, Sandler O’Neill & partners were the only placement agents of the private offering of the fixed to floating rate subordinated notes. With all the upside of these notes, there are other factors that have affected these notes in the market. The Nexbank Capital notes cannot be sold or offered since they are not registered under the Securities Act in the United States without a special exemption from the necessary requirements or the registration itself.
As a financial institution, Nexbank is oriented and built on three main pillars in the financial world. One is the commercial banking, the second one being offering institutional financial services and finally one if the most lucrative of the banking businesses, mortgage banking. The bank primarily deals with financial institutions and corporations providing them with customized banking and financial plans and other services all over the United States.
Within Dallas, the institution has partnered with different communities and organizations in order to create and maintain a culture of growth, sustainainace, and development in Dallas and Texas at large. These communities benefit from fundings in form of donations and support in form of assistance in the development of financial plans to promote education and other basic needs of the entire society in Dallas. It has partnered with the Dallas Women leadership group, now called the Texas Women leadership, as a financial supporter of their annual summit and with parents from the different school in the development of long term education plans.