Bank of the Ozarks in Little Rock, Ark., has launched a subordinated debt offering that was well telegraphed to the market but is smaller than some had anticipated.

The $11.4 billion-asset company is offering 10-year subordinated notes that will pay a floating rate of interest and mature in 2026, it said in a securities filing on Monday.

Bank of the Ozarks has not yet disclosed the amount of the offering or the interest rate. However, Keefe, Bruyette & Woods estimated in a research note that the company will raise $125 million.

The "size of the raise is smaller than … our estimate for $300 million," the KBW note said.

Bank of the Ozarks expects to use the proceeds to fund organic growth, including its expected increase in nonpurchased loans and leases, and for general corporate purposes.

During the bank's earnings call in April, it said that "the most efficient and accretive manner for raising additional capital may be the issuance of subordinated debt by our parent holding company," according to a transcript of the call.

Bank of the Ozarks announced in December that it raised $110 million in an offering of its common stock, selling 2 million shares for $52.42 each to existing shareholders and institutional investors. 

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