Business First Bancshares, Inc. (Nasdaq: BFST), the parent company of b1BANK, has successfully completed a private placement of $85 million in aggregate principal amount of 6.50% fixed-to-floating rate subordinated notes due 2036. This offering was made to qualified institutional buyers and accredited investors, structured to qualify as Tier 2 capital for regulatory purposes. The proceeds from this issuance will be utilized to redeem approximately $66.93 million in outstanding subordinated notes, provide additional capital support to b1BANK, and facilitate growth opportunities. The notes will initially bear interest at 6.50% per annum until March 31, 2031, after which the interest rate will reset quarterly based on the three-month Secured Overnight Financing Rate (SOFR) plus 300 basis points. The notes are redeemable by the company after five years and contain customary representations, warranties, and covenants. This strategic move is expected to enhance the company's capital position and support its operational and growth strategies.

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