Nexbank has been providing financial services to the residents of Dallas Texas and beyond for the past century. Lately, they have been pursuing initiatives and deals that would improve their performance and at the same time benefit their customers. The initiative that they came up with was the senior unsecured notes. These have been offered publicly and so far, more than $155 million has been issued.
The arrangement states that the notes will mature on the 16th of March 2026, however, the notes will start being callable in the March of 2021. The deal has been created such that for the first five years, the notes will bear interest at a fixed rate of 5.5 percentage points. Then, when the first five years have ended, they will spread the rates over a 3 month period. The spread will be based on a 3 month LIBOR of 435.5 basis points. The better business bureau took time to rate the transaction and deemed it as commendable while the Kroll Bond rating agency approved the deal.
The bank hopes that all the profits that will come from this deal will cover the debts issues of the company with the remainder catering for various other corporate uses. The placement agent who brokered this deal was Sandler O’Neil and partners. John Holt, the CEO of Nexbank stated that this transaction was crucial for the bank as it would help them solidify their balance sheet and attain much needed capital for other investments. John, who also serves as the Chief Operations Officer stated that the move was a great success for the bank because it would really help the development of their organization.
Nexbank has been serving the citizens of Texas since 1912. They are involved with commercial banking, mortgage banking and many other investment types. They deal with both public and private companies that need their financial services.