NexBank has recently completed a deal, managed by Sandler O’Neil and Partners, worth $54 million. The transaction, a bond issue, was privately placed and subscribed to by both wealthy individuals and institutional investors attracted by the terms of the BBB rated bond.
The bond issue, which was assigned a maturity date of 30 September 2017, offers a fixed rate return of 6.375% for the first five years. Then the rate switches over to a floating number based on LIBOR at that time.
Due to the BBB rating attached to this bond by the Kroll Bond Rating Agency, NexBank is allowed by banking regulators to use the $54 million raised in this float as part of the bank’s Tier 2 capital reserves. Although, the stated purpose of this new infusion of capital is to bolster the day to day operations of the bank. The new bond debt brings the amount of money borrowed by NexBank to $283 million since 2016.
Based in Dallas, Texas, NexBank does most of its business in the Lone Star State. However, it has clients across America. It has many subsidiaries which divide the company’s business into three main arms: institutional lending, mortgage banking, and commercial lending. The bank also has an investment banking group through which it participates in the syndicated offering of corporate equities.
Founded in 1922, NexBank has been a presence in Dallas’ banking for a while now. The bank is on the SBA’s (Small Business Administration’s) list of preferred lenders in the state of Texas. There are three branch locations through which the bank has managed to build an impressive $7.6 billion in assets and net income of $81.5 million.
NexBank Capital, Inc. is a privately owned corporation. Chairman James Dondero guides its board of directors. Mr. Dondero is also the President and Co-Founder of Highland Capital management. Under his leadership, NexBank has grown to become the 4th biggest bank in the City of Dallas, and the 11th biggest in Texas.