Texas Bank closes $54 million Placement- Nexbank Capital

Nexbank Capital has completed a $54 million private placement to select investors, both institutional and of a high net worth status. Nexbank will use the profits for general business-related reasons. In this closing, they have raised $283 million of debt and equity since 2016.


The notes are non-callable and mature on September 30, 2027. They have a fixed interest rate of 6.375% for up to five years. After that, they will have a floating rate based on the three month LIBOR (London InterBank Offered Rate) of 458.5 basis points. They were assigned BBB- investment rating by Kroll Bond Rating Agency and qualifies as a Tier 2 capital under capital regulations.


Sandler O’Neill & Partners were the placement agent for the notes, which closed on September 19, 2017.


The notes have not been registered under the Securities Act and will not be sold in the United States without registration or an exemption from registration requirements.


Nexbank Capital Inc. is a financial service company based in Dallas, Texas established in 1937. Their executive management team provides services for commercial and mortgage banking, to institutional clients and financial institutions including corporations, real estate investors, and middle-market companies. They are the 11th largest bank in Texas As of 2017, they have over $7.6 billion in assets.


With commercial banking, they offer commercial real estate lending (with commercial and SBA loans), credit and agency services and treasury management. For their institutional services, they help them to grow by offering company term loans, revolving lines of credit, tailored depository services, and loan participations through syndicated national credits. They also offer personal and online banking services, and Certificates of Deposits (CD) to help clients save for long-term financial goals.


The company is led by Chairman James Dondero, the co-founder, and president of Highland Capital Management LP.

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