Terms

Convertible

No

Shares Offered

6,600,000

Prospectus Summary

This prospectus supplement is not a preferred stock offering. Bank of the Ozarks, Inc. (NASDAQ: OZRK) is offering 6,600,000 shares of common stock at $45.45 per share (net price to company), with a 30-day overallotment option for up to 990,000 additional shares. The par value is $0.01 per share. Common stock carries no fixed dividend obligation; dividends are entirely discretionary and may be reduced or eliminated at any time by the Board. This is a common equity offering — the most junior security in the capital stack. Common stockholders are subordinate to all depositors, senior creditors, subordinated noteholders ($225 million), and trust preferred securities/subordinated debentures (~$118 million). Notably, the Company is in the process of a reorganization merger into its wholly-owned bank subsidiary, Bank of the Ozarks; if consummated, shares convert 1-for-1 into Bank common stock, eliminating the holding company layer and making the Bank itself the publicly traded entity regulated by the FDIC and ASBD rather than the Federal Reserve. There is no fixed yield — dividends on common stock are declared at Board discretion. Recent quarterly dividends have ranged from $0.130 to $0.175 per share. Common stock dividends from a bank holding company or bank may qualify for the preferential qualified dividend income (QDI) tax rate for individual shareholders, though no explicit QDI qualification is stated in this prospectus. Dividend payments are subject to regulatory constraints: the FDIC's prompt corrective action rules, Arkansas banking law, and covenants in the subordinated debenture indentures can all restrict or prohibit dividend payments to common shareholders.

Summarized from the SEC prospectus filing.

Distribution History

Div Score Breakdown

Reinvesty's multi-factor safety analysis for this preferred, composite score: 42 (Average)