Baton Rouge, La.-based Business First Bancshares Inc. completed a private placement of $25 million of fixed-to-floating subordinated notes due Dec. 31, 2033, to an EJF Capital LLC affiliate.

The notes will bear interest, quarterly in arrears, at a rate of 6.75% per year, starting Dec. 17, 2018, until Dec. 17, 2028, thereafter bearing interest at a floating rate, reset quarterly, equal to three-month London Inter-bank Offered Rate, or a replacement benchmark if necessary, plus 369 basis point.

The notes are redeemable by the company on or after Dec. 17, 2028.

For regulatory purposes, the notes have been structured to qualify as Tier 2 capital for Business First.

Business First expects to use the net proceeds from the offering to repay approximately $3.3 million outstanding balance of its indebtedness.

Stephens Inc. served as financial adviser, with Fenimore Kay Harrison & Ford LLP as legal counsel, for the offering.