Bank OZK climbs after unveiling San Diego loan extension details

By Reuters News

** Regional lender Bank OZK's OZK.O shares rise 2.4% to $45.48

** OZK extends maturity of its largest credit — a $915 million loan commitment secured by a project in San Diego — to December 2029

** The sponsor and its partners are contributing an additional $100 million of capital to the project in connection with the maturity extension

** "Overall, we view this as constructive for OZK, as this extension and sponsor funding ease NT (near term) maturity and liquidity concerns," Piper Sandler analysts say

** "While the extension itself was largely expected, the incremental positive is the additional $100mm sponsor contribution, which we believe reduces the likelihood of near-term adverse risk-rating migration alongside 3Q earnings," TD Cowen analysts say

** Three of 10 brokerages rate the stock "buy" or higher, five "hold" and two "sell" or lower; median PT $51.50 - LSEG data

** As of last close, OZK shares down 3.5% YTD

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