A private placement of $54 million floated by NextBank Capital inc., raised a total of $283million, the company announced in September 2017.The fixed-to-floating notes were issued to selected institutional and high net- worth investors and the company plan to use the proceeds from the exercise to service general organization activities. The Dallas-based bank further said that the notes remain non-callable for five years, earning a fixed interest of 6.375%.
Rating company Kroll Bond Rating Agency classified the notes as Tier-2 capital, operating within the capital regulations under a BBB grade rating. The offering which closed on September 19, 2017, was solely awarded to Sandler O’Neill& Partners L.P as the agents. According to NextBank, the notes are not registered under the Securities Act.
NextBank is the ranked 11th largest bank in Texas state and 161st largest in the USA. With an asset base of $7.6 billion, the financial institution offers commercial banking, mortgage banking and institutional services with a focus on institutional clients and financial institutions. It also serves the property markets and middle-tier companies.
Renowned investor James Dondero is the co-founder and President of the bank which began operations in 1934.Its three offices in Texas are served by 87-full-time employees. Online bank rating website Bankrate.com gave NextBank a 5-star rating, the highest, in its Safety and Soundness scorecard. Bankrate uses the Safety and Soundness matrix to evaluate the financial strength of financial institutions.
NextBank has maintained steady growth over the years while retaining some of its core products. Its focus on institutional clients has blended well with personal services helping to maintain profitability.To ride with current market tides, the bank has entrenched online banking in its system. Also, NextBank offers Certificate of Deposits at competitive rates tailored to meet specific client’s needs.
Customers of financial institutions have great confidence in institutions that have a reach legacy. Having been in the market since 1934, NexBank has weathered different economic and political storms, gaining a clear insight into the market.This places the bank in a position to bring innovative products that respond to needs of the modern client while focusing on strengthening the future.