NexBank Capital, Inc., a Dallas-based financial services company and holding company of NexBank, announced the successful completion of a private placement of $150 million in aggregate principal amount of 4.00% fixed-to-floating rate subordinated notes due 2031 (the “Notes”) to certain qualified institutional buyers and accredited investors. The Company intends to use the proceeds of the private placement to refinance existing debt and for general corporate purposes.
The Notes will initially bear interest at a fixed rate of 4.00% for five years, and thereafter the interest rate will be reset quarterly to a per annum floating rate equal to the then current three-month term Secured Overnight Financing Rate (SOFR) plus 339 basis points. The Notes have a stated maturity date of August 15, 2031. The Notes have been structured to qualify as Tier 2 capital for the Company for regulatory capital purposes.
Piper Sandler & Co. served as the placement agent for the offering. Hunton Andrews Kurth LLP served as legal counsel to NexBank Capital, Inc., and Norton Rose Fulbright US LLP served as legal counsel to the placement agent.
NexBank Capital, Inc. is a financial services company that serves its clients through three core businesses: Institutional Banking, Commercial Banking, and Mortgage Banking. It provides customized financial and banking services primarily to institutional clients, financial institutions, and corporations nationwide.
This press release is for informational purposes only and shall not constitute an offer to sell, or the solicitation of an offer to buy, any security, nor shall there by any sale in any jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction. The Notes have not been registered under the Securities Act of 1933, as amended, or any state securities law and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. The indebtedness evidenced by the Notes is not a deposit and is not insured by the Federal Deposit Insurance Corporation or any other government agency or fund.
