As of September 2017, the institution Nexbank completed a large subordinated debt offering of 54 million dollars. The notes are fixed to floating rates and were distributed privately to institutions and individuals with high net worth. The debt matures in 2027. Nexbank Capital will use the proceeds for its own corporate purposes.
Details of the notes include: 6.375% fixed interest rate for five years, after that the rate becomes a float, based on the LIBOR rate for 458.5 basis points quarterly. The notes cannot be called for 5 years. Overall, the offering has received an investment grade BBB- rating. The outlook is considered to be stable by Kroll Bond Rating Agency. They are classified as Tier 2 Capital.
The offering is currently closed. Placement was facilitated exclusively by Sandler O’Neill Partners, LP. These are not registered under the securities act, so they can’t be sold or offered in the US without an exemption or registration.
Pertaining to the lender NexBank, the company was founded in 1922. Their primary focuses are within the Mortgage and Commercial banking spaces. They currently hold upwards of 8 billion dollars in assets, and they also serve institutional clients. Currently, their President and CEO is John Holt. They are FDIC insured.
According to slideshare.net Nexbank has been named Top Performing Bank in the US by Independent Banker Magazine. John Holt recently served as a speaker at the Bank Director Conference. At the end of 2015, Nexbank acquired College Savings Bank. CSB offers 529 unique college savings programs. Throughout the 2010s, Nexbank has grown year over year.
Nexbank is also a major contributor to their local community in Texas. They donate regularly to Veterans of Texas. They also facilitate programs to provide financial education in low-income neighborhoods. They have partnered with several community organizations to provide various services. These include Habitat for Humanity, Dallas Women’s Foundation, and EverFi.