The Dallas-based financial institution NexBank Capital Inc., has announced the increase in the amount of its private placement of senior unsecured notes to $75 million which reflects a $25 million increase from the March 18, 2016 offering.
The proceeds of the offering will be used for capital for its banking subsidiary and other growth purposes. The agent for the private offering of the notes was Sandler O’Neill & Partners, L.P.
The notes will mature on March 16, 2016. They will bear an interest rate of 5.50% and will be non-callable for five years. After five years they will have a floating rate above the three-month LIBOR of 435.5 basis points.
The strong demand from investors both existing and new allowed the financial institution to increase their offering and is a strong indication of the financial community’s support for NexBank’s continued growth.
For the past four years NexBank Capital Inc. has recorded record earnings and has significantly increased their year-over-year earnings while improving assets, loans and deposits. The year-over-year net income for 2015 was $53.2 million and the Return on Average Equity was 35% which was 12% higher than 2014. Year-end assets totaled $2.72 million which was 48% more than 2014.
On November 30, 2015 NetBank Capital Inc. acquired College Savings Bank which provides an additional source of deposits and helps to diversify their balance sheet.
NexBank Capital Inc. is a financial services company with a charter dating back to 1922. In order to meet their client’s needs, they serve the banking community across three different platforms: commercial, investment and mortgage banking. The company provides banking services to financial institutions, corporations and individuals throughout the nation.