Financial Institution Raises $54 Million in Private Note Offering

Dallas-based NexBank Capital has been working to raise $238 million in debt and equity since 2016. The company was able to close $54 million in a private note offering to institutional and high net worth investors. This financial services company has plans to use this money for general operational purposes. This private note offering closed in September 2017 and was made possible by the sole placement agent Sandler O’Neill & Partners, L.P.

The notes were subordinate fixed-to-floating rate notes with a maturity date of September 30, 2027. According to banktracker, the fixed interest rate on these notes is 6.375 percent for the first five years, then these notes switch to a floating rate. The Kroll Bond Rating Agency gave these notes an investment grade rating of BBB-, which means these notes have a moderate amount of risk of loss depending on the level of stress during credit-related events.

NexBank Capital is headed by Chairman James Dondero, who is also the co-founder and President of the alternative investment firm Highland Capital Management. NexBank Capital has over $8 billion in assets and focuses on providing commercial banking, mortgage banking, and institutional services to its clients throughout the U.S. NexBank Capital’s clients are high-net-worth investors such as financial corporations, institutional investors, and wealthy individual investors. The company also works with low-income individuals and families through its charitable outreach. For instance, the company has provided home loans to over 900 low to moderate income families in Texas. The company has also sponsored financial literacy courses to public schools in low to moderate-income neighborhoods.

NexBank Capital strives to meet the needs of its clients and provide them with individualized financial solutions. Some of the services NexBank provides includes commercial real estate lending, treasury management, wholesale and correspondent lending, investment banking, and real estate advisory services. The company also offers personal banking services like savings accounts, checking accounts, mortgages, wealth management, and online banking.



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