By William Gullotti
Buffalo, N.Y., Aug. 11 – NexBank Capital, Inc. completed a private placement of $150 million of fixed-to-floating rate subordinated notes due Aug. 15, 2031, according to a press release Wednesday.
The notes bear interest at a fixed rate of 4% per year for the first five years. After five years, the interest rate will reset quarterly to floating rate equal to SOFR plus 339 basis points.
The notes have been structured to qualify as tier 2 capital under regulatory guidelines.
Piper Sandler & Co. was the agent.
Proceeds will be used to refinance existing debt and for general corporate purposes.
NexBank Capital is a Dallas-based financial services company.
Issuer: | NexBank Capital, Inc.
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Issue: | Fixed-to-floating rate subordinated notes
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Amount: | $150 million
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Maturity: | Aug. 15, 2031
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Coupon: | 4% for first five years; then SOFR plus 339 bps
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Placement agent: | Piper Sandler & Co.
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Settlement date: | Aug. 11
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Distribution: | Private placement
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