Archive for the ‘Financial Services’ Category

An Example of Successful Capitalization through Senior Notes

Monday, March 6th, 2017

Nexbank Capital Inc. is a privately owned financial services provider involved in banking and financial services. Recently, NexBank Capital raised additional capital through unsecured senior notes, realizing a total of $155 million. The private placement was hugely successful and the notes oversubscribed. The notes are stable attracting a BBB investment rating from the Kroll Bond Rating Agency. The elements of the offering include a five-year 5.5% fixed rate interest and subsequently a floating rate.

Speaking at the announcement, the CEO and President of NexBank Capital, John Holt, reiterated that the recognition of the senior notes from the rating agency is a testament to their strong position in the market. The oversubscribed state of the placement demonstrates investor confidence in NexBank to succeed and deliver long-term benefits. Sandler O’Neill & Partners advised the offering, and the unsecured notes would require registration before being used for trading.

NexBank’s business success was validated by the extensive institutional support the placement enjoyed. The capital is intended to go towards clearing cumulated obligations, operational business growth, and strategic future capital investments. NexBank Capital achieved a 71% year-on-year growth rate in 2016 in total assets and over $83 million in net income the same year.

NexBank Capital is a subsidiary of NexBank SSB, a financial and banking services provider founded in 1922 and based in Dallas, TX. NexBank Capital has operations in commercial banking, investment and mortgage banking, and institutional financial services. Its major clients include financial institutions, corporate and institution-based customers, real estate investors, brokerages and small and medium enterprises. NexBank SSB was previously known as Heritage Bank with the name change taking place in 2005.

NexBank Capital has realized tremendous growth with John Holt as CEO and President. It has expanded its operations with over $4 billion in assets to date to become one of the largest banks in Dallas, TX. In 2014, Bank Director recognized NexBank Capital’s rapid growth in core deposits ranking at number one in the second quarter of the same year. In addition, The Independent Banker ranked NexBank SSB at number five on its list of the community banks with more than $1 billion in assets.