Nexbank, based out of Dallas, was careful in properly placing an oversubscribed senior notes. Although the bank had already issues a private placement, they wanted to reopen their initial offering, allowing them to raise an additional $80 million. Once the entire run was completed, it was more than $150 million total.
The notes that are callable, will reach their maturity date as of March 16,2026. Although they can be called in 2021, the date that is given for full maturation is what gives them their ultimate value. The notes are capable of accruing interest, of 5.50% for at least five more years. Some believe that the most attractive feature about these notes is that they have floating interest after the fixed rate ends. View Related Info Here.
This has made it attractive to those who want to invest and work with banks that believe that the ideal foundation for the bank is that they are using their proceeds from any interest they earn to pay off any debts that they have accrued. Due to the history of Nexbank thus far, investors are gaining confidence in what’s happening around them. Behind every step Nexbank has taken in regards for its next step for earning interest, has only been strategically placed to keep earning gains with the hope that they can make themselves debt free.
One of the advantages that Nexbank has, is that NexBank have a track record of success. Anyone can go back and look at what they’ve done so far, and where they are headed and easily determine whether or not they’ll make the grade with their next step.
NexBank’s excellent credit quality has been verified by the Kroll Bond Agency, an authority on this type of rating that is granted through the BBB. Attracting a wide range of investors is not a bad thing for Nexbank, and it will be interesting to see how far they go in the marketplace ending 2019 and going in to 2020.