Home » NEWS » Banking & Finance » Trustmark prices public offering

Trustmark prices public offering

JACKSON — Trustmark Corporation has priced its public offering of 5,405,406 shares of common stock at $18.50 per share. Trustmark has also granted the underwriters a 30-day over-allotment option to purchase up to 810,810 additional shares of common stock.

The offering will generate gross proceeds to the company of $100 million, without giving effect to the potential exercise of the underwriters’ option to purchase additional shares in the next 30 days. The offering is expected to close on or about Dec. 7, 2009, subject to customary closing conditions.

Upon completion of this offering, Trustmark intends to notify the U.S. Treasury of its intent to redeem all 215,000 shares of its outstanding Fixed Rate Cumulative Perpetual Preferred Stock, Series A. The approval of the U.S. Treasury and the company’s banking regulators is required for the redemption of the Series A Preferred Stock. The company has consulted its banking regulators as to its intent to redeem the Series A Preferred Stock, and the company understands that the U.S. Treasury will also consult these regulators upon receipt of notice from Trustmark of its intent to so redeem. The company can make no assurances as to when, or if, it will receive such approvals. If the company receives such approvals, it expects to fund a portion of such redemption with the net proceeds of the offering. To the extent the company does not use the net proceeds of the offering to redeem the Series A Preferred Stock, it will use the net proceeds for general corporate purposes.

If the company redeems the Series A Preferred Stock, it also intends to seek agreement with the U.S. Treasury to repurchase the warrant to purchase 1,647,931 shares of common stock issued to the U.S. Treasury under its Capital Purchase Program. In order to effect this repurchase, Trustmark must reach agreement with the U.S. Treasury on the fair market value of the warrant. The company can make no assurances as to whether it will in fact reach such agreement and, if so, at what price.


… we’d like to ask for your support. More people are reading the Mississippi Business Journal than ever before, but advertising revenues for all conventional media are falling fast. Unlike many, we do not use a pay wall, because we want to continue providing Mississippi’s most comprehensive business news each and every day. But that takes time, money and hard work. We do it because it is important to us … and equally important to you, if you value the flow of trustworthy news and information which have always kept America strong and free for more than 200 years.

If those who read our content will help fund it, we can continue to bring you the very best in news and information. Please consider joining us as a valued member, or if you prefer, make a one-time contribution.

Click for more info

About Wally Northway

Leave a Reply

Your email address will not be published. Required fields are marked *