NexBank successfully completed a subordinated debt offering of $54 million on September 19th, 2017. This brings the total amount the company has raised from equity and debt offerings since 2016 to $283 million. The subordinated notes were floated to certain high net worth individuals and institutional investors. The notes have a term of 10 years but they can be redeemed any time after September 2022. For the first five years, the interest rate is fixed at 6.375% per annum and for the remaining 5 years, the interest rate will vary based on the prevailing 3-month LIBOR at that time.
NexBank will use the amount raised from the debt offering for general business purposes. Several debt rating agencies, including the Better Business Bureau and Kroll Bond Rating Agency, have given the notes a high rating. According to the relevant capital regulations, the notes are classified as Tier 2 capital. NexBank’s agent in the debt offering was Sandler O’Neil & Partners, L.P.
About NexBank Capital, Inc.
Ever since it was established in 1922, NexBank Capital, Inc. has been providing its clients with topnotch financial services. It offers a wide range of services, with the main categories of services offered being institutional services, mortgage banking, and commercial banking. Its clients include financial institutions, real estate investors, corporations, and institutional clients all over the US.
The company provides services that are tailored to the needs of each and every one of its clients and that is what sets it apart from other financial service providers. NexBank is led by an excellent team of executives who have been very instrumental in the company’s success. As of the end of the 2016/2017 financial year, the company had assets worth $6.4 billion.
NexBank is always focused on improving its services to ensure that its clients are always happy and satisfied with the quality of services they receive. The money raised from the subordinated debt offering will no doubt enable them to improve their service offering and serve their clients even better. The investors who took up the offering can also be sure to benefit greatly from the returns they will receive because of the high rating the notes have received.