Business First Bancshares, Inc. Announces Underwritten Public Offering of Common Stock

Rhea-AI Summary

Business First Bancshares (NASDAQ: BFST) has announced an underwritten public offering of 2,500,000 shares at $20.00 each, aiming for net proceeds of approximately $46.75 million. The proceeds will support general corporate purposes, including capital augmentation, organic growth, and potential acquisitions. The offering is expected to close around October 17, 2022, with Stephens Inc. as the book-running manager. This move comes as the company manages $5.5 billion in assets and was recognized as the #1 Best-In-State Bank in Louisiana by Forbes.

Positive

• Planned use of $46.75 million for capital augmentation and growth opportunities.
• Recognition as #1 Best-In-State Bank in Louisiana enhances brand reputation.

Negative

• Issuing 2,500,000 shares may lead to dilution for existing shareholders.

BATON ROUGE, La., Oct. 12, 2022 (GLOBE NEWSWIRE) -- Business First Bancshares, Inc. (NASDAQ: BFST) (Business First), parent company of b1BANK, announced today an underwritten public offering of 2,500,000 shares of its common stock at a public offering price of $20.00 per share.   The net proceeds to Business First from the offering, after deducting the underwriting discount and offering expenses, are expected to be approximately $46,750,000.

Stephens Inc. is serving as the sole book-running manager for the offering. Raymond James & Associates, Inc. is serving as the lead manager for the offering and D.A. Davidson & Co., Hovde Group, LLC, Janney Montgomery Scott LLC and Piper Sandler & Co. are serving as co-managers for the offering.

Business First plans to use the net proceeds from the offering for general corporate purposes, which may include augmenting its capital, supporting future organic growth, funding potential acquisition opportunities, and redeeming certain of its subordinated debt.

Business First expects to close the offering, subject to customary conditions, on or about October 17, 2022.

The shares will be issued pursuant to an effective shelf registration statement (File No. 333-256605) Business First filed with the Securities and Exchange Commission (SEC), and only by means of the accompanying prospectus and a related prospectus supplement. Prospective investors should read the prospectus and other documents Business First has filed with the SEC for more complete information about Business First and the offering. Copies of these documents and the related prospectus supplement, when available, may be obtained at no charge by visiting the SEC’s website at www.SEC.gov. Copies of the prospectus and related prospectus supplement, when available, may also be obtained by contacting Stephens Inc., 111 Center Street, Little Rock, AR 72201, Attn: Syndicate (1-800-643-9691).

No Offer or Solicitation
This release does not constitute or form part of any offer to sell, or a solicitation of an offer to purchase, any securities of Business First. There will be no sale of securities in any jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.

About Business First Bancshares, Inc.
As of June 30, 2022, Business First Bancshares, Inc., (Nasdaq: BFST) through its banking subsidiary b1BANK, has $5.5 billion in assets, $6.2 billion in assets under management through b1BANK’s affiliate Smith Shellnut Wilson LLC (SSW) (excludes $0.9 billion of b1BANK assets managed by SSW) and operates banking centers and loan production offices across Louisiana and Texas providing commercial and personal banking products and services. Commercial banking services include commercial loans, letters of credit, working capital lines, equipment financing and treasury management services. b1BANK was awarded #1 Best-In-State Bank, Louisiana, by Forbes and Statista and is a multiyear winner of American Banker’s “Best Banks to Work For.”

Forward-Looking Statements
Statements in this press release may not be based on historical facts and may be “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may be identified by reference to future period(s) or using forward-looking terminology, such as “anticipate,” “estimate,” “expect,” “foresee,” “may,” “might,” “will,” “would,” “could” or “intend,” future or conditional verb tenses, and variations or negatives of such terms. Any forward-looking statement speaks only as of the date of this press release, and Business First does not undertake any obligation, and specifically declines any obligation, to revise or update these forward-looking statements, whether as a result of new information, future developments or otherwise.

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FAQ

What is the public offering price for Business First Bancshares shares?

The public offering price for Business First Bancshares shares is $20.00 each.

When is the expected closing date for the offering related to BFST?

The expected closing date for the offering is on or about October 17, 2022.

How much is Business First Bancshares expecting to raise from the offering?

Business First Bancshares expects to raise approximately $46.75 million from the offering.

What will the proceeds from the offering be used for?

The proceeds will be used for general corporate purposes, including capital augmentation and potential acquisitions.

Who is managing the public offering for Business First Bancshares?

Stephens Inc. is serving as the sole book-running manager for the offering.