Subordinate Notes & Regional Banking

Loans are a big deal when it comes to banking and for doing business. There are times when the borrowing party doesn’t have the necessary funding to conduct business and this where loans come into the picture. In other words, subordinate notes can be a life saver as well as a backbreaker. Subordinate loans are basically short-term loans and back on Sept. 29, NexBank Capital reported completing a $54 million private placement of its fixed-to-floating subordinate notes. This successful completion will go to high-net-worth investors and specific institutions. Actions like this have allowed NexBank Capital to raise over $283 million since 2016. This is debt and equity and its finest. The notes have a stated maturity until Sept, 30, 2027. Even within the next five years, the notes are non-callable. During the five years, the notes will retain a 6.375 percent fixed-interest rate. This is a huge win for NexBank Capital as the notes have an assigned investment grade rating, and they qualify with a Tier 2 capital rating by Kroll Bond Rating Agency.

NexBank Capital is a leading regional banking institution in Dallas, Texas. As of June 30, 2017, this bank was reported to having $6.4 billion in total assets. NexBank specializes in commercial, mortgage and investment banking, but it offers all of the other major banking services such as online banking, warehouse lending, credit services, agency services, commercial lending, treasury management and public funds. Whether its middle-market companies, large corporations or real estate investors, most organizations can do business here.

NexBank has a long history of success and that comes from great leadership. President John Holt has been working his magic ever since he took over the position. Holt is also a regular attendant at the Strategic Opportunities and M&A Conference, which is hosted by the Texas Bankers Association. The future is looking mighty bright for this financial juggernaut as it is setting new trends, it’s raising the bar even higher, and it’s changing the status quo.

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