Recently, Nexbank completed the sale of $54 million in investment grade BBB bonds to private investors. The capital raised will be used for Nexbank’s general corporate expenses. The bond notes have a maturity date of September 30, 2027 and they are not callable for the next years.
This is a method for raising capital Nexbank has used to raise $283 million since 2016. The offering of the notes closed on September 19, 2017. The fixed rate of interest on the notes is 6.375% for five years. The Knoll Bond Rating Agency qualified the offering as Tier 2 capital.
NexBank Capital, Inc. is a Dallas, Texas-based financial services company. Its services include customized financial services provided to institutional clients, corporations and financial institutions. It is the 10th largest bank in the state of Texas.
In December, 2015, Nexbank acquired the College Savings Bank of Princeton, NJ. It specialized in 529 college savings plans. The College Savings Bank continued its offerings as a division of Nexbank. The College Savings Bank was in business as of 1987. It had a long standing as a savings institution for the Indiana CollegeChoice CD 529 Savings Plan and the Arizona Family College Savings Program.
College Savings Bank offers FDIC-insured CD investment options and its high-yield savings account does not charge any asset-management fees. By using the 529 plans, families can enjoy potential tax benefits and security in knowing their investment is principal safe.
Matt Siekielski, Executive Vice President and Chief Operating Officer of NexBank Capital, Inc. stated that he felt the acquisition enabled Nexbank to better serve the needs of their clients by expanding their platform in the short and long term. Nexbank’s charter dates back to 1922 and has assets in excess of $7.6 billion. It has two divisions in the Dallas area, one located on McKinley Avenue, the other at Preston Center. Its divisions provide services to commercial banking customer, mortgage banking clients and offer both institutional and depository services.