Guaranty Federal Bancshares, Inc. Announces Completion of $20 Million Subordinated Notes Offering

Guaranty Federal Bancshares, Inc. Announces Completion of $20 Million Subordinated Notes Offering

  • Posted: 07/30/2020
  • Castle Creek

SPRINGFIELD, Mo.–(GLOBE NEWSWIRE)–Guaranty Federal Bancshares, Inc. (NASDAQ: GFED) (the “Company”), the parent company for Guaranty Bank, today announced the completion of its offering of $20 million in fixed-to-floating rate subordinated notes due 2030 (the “Notes”) to certain qualified institutional buyers and accredited investors in a private placement transaction. The Notes will initially bear interest at a fixed annual rate of 5.25%, for five years and will reset quarterly thereafter to the then current three-month SOFR plus 519 basis points. The Company may redeem the Notes on or after September 30, 2025, or at any time upon certain other specified events. The Notes have been structured to qualify initially as Tier 2 Capital for the Company for regulatory purposes. The Company intends to use the net proceeds of the offering for general corporate purposes.

Shaun A. Burke, President and Chief Executive Officer, stated, “This capital raise is a cost-effective way to increase our regulatory capital at an attractive interest rate without diluting our current stockholders. We are very pleased with the support from the investment community that resulted in the successful completion of the offering.”

Performance Trust Capital Partners, LLC acted as placement agent for the offering.  Barack Ferrazzano Kirschbaum & Nagelberg LLP served as legal counsel to the Company and Hunton Andrews Kurth LLP served as legal counsel to the placement agent.

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