BFST · Business First Bancshares, Inc.

Business First Bancshares, Inc. strengthened its capital structure through the issuance of $85.0 million in subordinated notes structured to qualify as Tier 2 regulatory capital, providing a key buffer for its banking subsidiary b1BANK. The transaction refinances $66.93 million of existing subordinated debt, likely at a more favorable rate or term, while netting additional capital to support organic growth and opportunistic strategies. The notes' fixed-to-floating structure offers investors an attractive 6.50% yield for the initial five years, transitioning to SOFR + 300 bps thereafter, with quarterly resets and payments aligned with standard market conventions. Redemption flexibility after the fifth anniversary gives the company optionality to manage its liabilities as market conditions evolve. As unsecured subordinated obligations, they rank junior to senior debt but enhance the company's overall funding mix without diluting common equity. The private placement to qualified institutional buyers and accredited investors under Rule 506(b) ensures efficient execution without public market registration. Exhibits detail the note forms (global and certificated), purchase agreement terms, investor presentation, and press release, providing transparency on mechanics and restrictions like minimum denominations of $250,000 and ERISA considerations.