NexBank Increases Senior Notes Up To $155 Million

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Feb 23, 2017, 09:05 ET

DALLAS, Feb. 23, 2017 /PRNewswire/ -- NexBank Capital, Inc., a Dallas-based financial services company, announced the successful completion of an oversubscribed private placement of its senior unsecured notes. NexBank Capital, Inc. reopened their initial offering and raised an additional $80 million, bringing the total issuance to $155 million.

The notes have a stated maturity of March 16, 2026 and are callable beginning March 15, 2021. The notes bear interest at a fixed rate of 5.50% for five years, and thereafter at a floating rate based on a spread above the three-month LIBOR of 435.5 basis points. The notes have been assigned an investment grade rating of BBB with a stable outlook by Kroll Bond Rating Agency.

NexBank Capital, Inc. intends to use the proceeds of the offering to repay certain indebtedness and for general corporate purposes. Sandler O'Neill & Partners, L.P. acted as the sole placement agent for the private offering of the notes.

"The oversubscribed placement demonstrates the continued confidence investors have in NexBank and its long-term business strategy. The additional funds will allow us to fortify the balance sheet with capital, which in turn will allow us to continue to grow and increase our earnings," said John Holt, President and Chief Executive Officer of NexBank Capital, Inc. "NexBank has a track record of financial strength and stability, and a selective approach to growth. We are pleased to have a BBB rating from Kroll Bond Rating Agency, which further validates our excellent credit quality and strong financial performance."

"This is another significant accomplishment by NexBank. We continue to attract accretive capital from a broad range of institutional investors, which validates our core businesses and strategies," said Matt Siekielski, Executive Vice President and Chief Operating Officer of NexBank Capital, Inc. "With this closing, we have raised over $200 million of debt and equity within the last 12 months. These funds will provide the capital necessary to continue organic growth in our core businesses and capitalize on strategic opportunities in the future."

NexBank Capital, Inc. recently announced record levels of consolidated earnings, assets, loans and deposits. As of December 31, 2016, total assets reached $4.64 billion, a 71% growth rate from 2015, total deposits exceeded $3.22 billion, a 72% growth rate from 2015, and total loans reached $2.83 billion, a 44% growth rate from 2015. Net income for 2016 exceeded $83 million, compared to $53 million for the year of 2015. The return on average equity (ROAE) and return on average assets (ROAA) were 35.48% and 2.47% respectively, for 2016.

NexBank SSB ("the Bank"), a leading regional bank, continues to significantly contribute to NexBank Capital Inc.'s growth while maintaining its well-capitalized status. The Bank's tier 1 leverage ratio and total risk-based capital ratio stood at 8.13% and 13.14%, respectively, at December 31, 2016.

The senior unsecured notes are not registered under the Securities Act and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements.

About NexBank Capital, Inc.

NexBank Capital, Inc. is a financial services company that serves its clients through three core businesses: Commercial Banking, Mortgage Banking and Institutional Services. It provides customized financial and banking services primarily to institutional clients, financial institutions, and corporations nationwide. www.NexBank.com

SOURCE NexBank