White River Bancshares Co. completed the private placement of $11 million in subordinated notes due Dec. 31, 2029, to institutional accredited investors.

The Fayetteville, Ark.-based company plans to use the net proceeds to replace existing debt, support organic growth and for general corporate purposes.

The notes will bear interest at a fixed rate of 5.875% per year until Dec. 31, 2024. After that, interest will be equal to three-month secured overnight financing rate plus 442 basis points.

White River Bancshares may redeem the notes at its option in whole or in part on or after Dec. 31, 2024, or in whole but not in part under certain other circumstances. The notes have been structured to qualify as Tier 2 capital for the company for regulatory purposes.

Raymond James & Associates Inc. was the sole placement agent for the offering. Kutak Rock LLP served as legal counsel to White River Bancshares, and Holland & Knight LLP served as legal counsel to the placement agent.