Most financial companies raise debt in order to get the capital they need to run their business or make acquisitions. Recently, a Dallas based financial services company completed a major debt offering. This company, Nexbank, is making big moves to add capital to its coffers.
The details of the NexBank deal amounts to $58 million dollars of debt which will be used for general operations of the company. When the $58 million is added to the other capital raised by the company since 2016, the amount rises to well over $200 million. This capital fundraising will allow the company to compete with the largest financial companies in the nation.
The company closed the deal in late September of 2017. And the debt is expected to be fully paid back in about ten years, as the maturity date is in September of 2027. In that time the company will be paying a fixed interest rate for the first five years. Afterwards, the rate will float for the next five years or up until repayment or maturity of the bond.
The debt is considered stable according to the latest debt rating. And overall, the debt offering should not have an adverse fiscal impact on the operations of the company. As NexBank continues to utilize their new capital for operations, the financial firm should be able to easily manage the debt.
NexBank is a financial services company which is headquartered in Dallas, Texas. Currently, the bank is the 4th largest in Dallas and the 10th largest in the state of Texas with a charter dating back to 1922. Led by President and Cheif Executive Officer, John Holt, the company currently holds over $7.6 billion dollars in assets as of September 30, 2017.
Among the services offered by NexBank include commercial banking, mortgage banking, wealth management, real estate advisory, and institutional services. In addition to their financial services, NexBank is also active in the community supporting various groups including the Dallas Women’s Foundation as well as sponsoring TREC Shark Tank: GrowSouth.