NexBank Increases Senior Unsecured Notes Offering to $75 Million

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Sep 09, 2016, 02:39 ET

DALLAS, Sept. 9, 2016 /PRNewswire/ -- NexBank Capital, Inc., a Dallas-based financial services company, today announced that it has increased the amount of its private placement of senior unsecured notes to $75 million. This represents a $25 million increase from the offering size previously announced on March 18, 2016.

The Company intends to use the proceeds of the offering to provide growth capital to its banking subsidiary and for other general corporate purposes. Sandler O'Neill & Partners, L.P. acted as the sole placement agent for the private offering of the notes.

The notes are non-callable for five years, and have a stated maturity of March 16, 2026. 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 by Kroll Bond Rating Agency, recently upgraded from BBB- to BBB with a stable outlook.

"The additional participation in the senior notes offering and recent Kroll rating upgrades reflect the financial community's support of NexBank's strength and continued growth," said John Holt, President and Chief Executive Officer of NexBank Capital, Inc.

"We are pleased with the strong demand from new and existing investors, which allowed us to increase the offering. This debt placement complements our recent capital raise and brings the total raised to $100 million of debt and equity over the last six months," said Matt Siekielski, Executive Vice President and Chief Operating Officer of NexBank Capital, Inc.

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. NexBank provides customized financial and banking services primarily to institutional clients, financial institutions, and corporations nationwide. www.NexBank.com

NexBank SSB is a member of the FDIC.

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SOURCE NexBank