Guaranty Federal Bancshares’ $20 Million Subordinated Notes Offering


Barack Ferrazzano acted as legal counsel to Guaranty Federal Bancshares, and Hunton Andrews Kurth LLP served as legal counsel to the placement agent in the offering.

Guaranty Federal Bancshares, Inc. (Nasdaq: GFED), the parent company for Guaranty Bank, executed 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 Company plans to use the net proceeds of the offering for general corporate purposes.

Initially, the Notes will bear interest at a fixed annual rate of 5.25% for five years and will reset quarterly thereafter to the then current three-month term 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.

Guaranty Federal Bancshares, Inc. has a subsidiary corporation offering full banking services. The principal subsidiary, Guaranty Bank, is headquartered in Springfield, Missouri, and has 16 full-service branches in Greene, Christian, Jasper, and Newton Counties and a Loan Production Office in Webster County.

Performance Trust Capital Partners, LLC acted as placement agent for the offering.

Barack Ferrazzano’s team was led by Robert M. Fleetwood (Picture) and Abdul R. Mitha.

Involved fees earner: Robert Fleetwood – Barack Ferrazzano; Abdul Mitha – Barack Ferrazzano;

Law Firms: Barack Ferrazzano;

Clients: Guaranty Federal Bancshares, Inc. ;

Author: Ambrogio Visconti