The Barack Ferrazzano Financial Institutions Group acted as legal counsel to Guaranty Federal Bancshares, Inc. (the “Company”; Nasdaq: GFED), the parent company for Guaranty Bank, in 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. According to President and CEO, Shaun Burke, “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.”

Barack Ferrazzano’s team was led by Robert M. Fleetwood and Abdul R. Mitha. Since March, the Financial Institutions Group has been engaged in 18 such offerings totaling over $1.5 billion in capital for the industry, many of which are still ongoing.

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About Guaranty Federal Bancshares, Inc.

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.

To learn more, visit: http://www.gbankmo.com

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