BancorpSouth redeeming trust preferred securities
by MBJ Staff
Published: June 27,2013
TUPELO — BancorpSouth Inc. reports that BancorpSouth Capital Trust I expects to redeem all of its issued and outstanding 8.15 percent trust preferred securities within the next 60 days.
The aggregate principal amount of the outstanding trust preferred securities is $125 million.
The trust preferred securities are currently callable at the option of the Tupelo-based bank holding company. The redemption will be funded with approximately $75 million of available cash and approximately $50 million of borrowings. The redemption price is 100 percent of the liquidation amount of $25 per trust preferred security, together with any accrued and unpaid distributions to the redemption date. The complete terms and conditions of redemption will be set forth in the trustee’s notice to the holders of the trust preferred securities.
The redemption, net of the estimated cost of incremental borrowings, is expected to result in an annual reduction of interest expense for BancorpSouth of $9.1 million, or $0.06 per share of company common stock, net of tax savings, and approximately nine basis points of incremental improvement in the net interest margin. Additionally, the company will incur a one-time non-cash charge during the third quarter of $2.9 million, or $0.02 per share of BancorpSouth common stock, net of tax, to write-off unamortized issuance costs associated with the original issuance of the trust preferred securities.
To sign up for Mississippi Business Daily Updates, click here.
Mississippi Economic Council
Mississippi Chambers of Commerce
Mississippi State Legislature
Mississippi Development Authority
Mississippi Economic Development Council
North Mississippi News
Social Security Disability Lawyer
Auto Accidents Lawyer
Top Posts & Pages
- Ingalls to lease former SRHS clinic in Gautier for employee medical center
- Aluminum company rumored for Columbus: 'clock' is for website, not plant site
- Shale oil: market correction or longterm direction?
- Miss. surgeon sentenced in tax evasion case
- WILLOUGHBY: Mayo Flynt leads AT&T Mississippi by enjoying both work and workers
- MARTIN WILLOUGHBY: Gary Herring building tomorrow by educating today
- Hyatt-Place is Columbus’ newest hotel option
- MBJ exclusive: Jackson’s new airport CEO fulfills desire to taking on the top job
- Nehi Bottling Company has been a Cleveland fixture for 85 years