Community Bank

Dallas-based Bank Raises $54 Million in Private Placement

Dallas-based Bank Raises $54 Million in Private Placement

Nexbank Capital, Inc. has officially closed its sale of subordinated notes that targeted institutional and high net worth individual investors. During the fixed to floating rate private placement, Nexbank Capital raised a total of $54 million. In a statement, the Nexbank’s management says that they intend to use the funds for corporate functions and general growth of the bank. Since 2016, the financial services firm has raised a total of $283 million in both equity and debt.

The subordinate notes sold are non-redeemable for the first five years, but the bank planned a maturity period of 10 years. The bank will pay the investors an interest rate of 6.375% during the first five years. Beyond the first five years, the interest rate will be calculated as 458.5 basis points above the prevailing three-month LIBOR rate.

Nexbank Capital had contracted Sandler O’Neil & Partners, L.P as the sole underwriter and agent of the subordinate notes during the private placement. The underwriter also announced the closure of the sale on September 19, 2017.

About Nexbank Capital

Nexbank Capital, Inc. was established in 1922 in Dallas, Texas. Through its subsidiaries, the bank offers investment banking products and other general financial services. Some of these products and services include mobile banking, broker-dealer, mergers and acquisitions, syndicated loans, and corporate advisory. The bank is a private business and raises funds through equity or debt by private placement.

Nexbank Capital has divided its business into three sections for optimal service delivery. The three include commercial, institutional, and mortgage banking. With the three specialized arms, the bank fully understands a client’s needs and tailor makes a financial product that meets the customer’s requirements. The bank’s target market includes institutional clients, large corporations, real estate investors, middle market firms, and high net individual investors.

James Dondero, who also doubles up as the President and co-founder of Highland Capital Management, L.P., serves as the chairman of Nexbank Capital board of directors. James combines sound management and leadership skills with his vast experience in finance to serve clients better for the overall growth and success of the company.

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