NexBank Capital, Inc. is a financial company offering institutional, mortgage, and commercial banking services to large corporations (financial and Institutional clients), middle market businesses, and real estate investors. On Thursday, February 23rd, 2017, the Dallas-based company announced that it had successfully raised $155 million after the oversubscription of its senior unsecured notes that were privately placed.
NexBank’s bonds offers were oversubscribed. This means that the demand of said bonds by investors exceeded the total number of bonds issued. It is for this reason that the company reopened and raised their initial offering by 80 million dollars, increasing the sum issuance to 155 million dollars.
March 16th, 2026 the issued notes will have matured and will be callable starting March 15, 2021. The bonds maintain a five-year fixed interest rate of 5.50% and offer a floating rate after that. The notes contain a Better Business Bureau (BBB) rating and have been deemed to be stable by the Kroll Bond Rating Agency.
The Strategy and End Game
NexBank plans to use the proceeds offered for general business purposes and the repayment of specific indebtedness. During the private bonds offering, Sandler O’Neill & Partners, L.P. was the sole acting placement agent. John Holt, the President of NexBank, stated that the large demand for bonds projected the confidence investors had for the company and its long-haul operations strategy. He added that the additional investment would help fortify the company’s accounting statements with the capital required to help increase its earnings.
NexBank’s Chief Operating Officer and Executive Vice President, Matt Siekielski, acknowledged that the company had raised more than 200 million dollars of equity and debt in the past year. He expounded that the funds will aid in the seamless growth of the company. Recently, NexBank Capital had announced impressive levels of growth in 2016 as compared to 2015, particularly revolving around assets, earnings, deposits, and loans.
NexBank Capital, Inc.
NexBank is led by James Dondero who is the Chairman. The company offers a wide a range of financial services to institutions, companies, and individuals.
Services offered under its commercial banking section include commercial lending, correspondent banking, agent services, credit services, and treasury management. Their mortgage banking section comprises of Correspondent, Wholesale, and Warehouse Lending. Its institutional services include Public Funds and Investment Banking.