Trustmark Corp. filed an 8-K and exhibit with the Securities and Exchange Commission this week that signaled its intent to repay the Treasury Department for the $215 million it received last November through the Troubled Asset Relief Program.
The company issued preferred shares and warrants to the government in exchange for the money, advanced under TARP's Capital Purchase Program. To date, it has paid nearly $7.9 million in dividends on the stock.
Trustmark, based in Jackson, Miss. is a diversified financial services company that operates Trustmark National Bank. It says that it has $9.8 billion in assets, including subsidiaries that provide wealth management, insurance and other services.
The capital to repay the TARP money will be raised through a public offering of 5.4 million shares of common stock, priced at $18.50 per share.
Trustmark expects the offering to raise gross proceeds of $100 million (although underwriters have a 30-day option to purchase an additional 810,810 shares). The offering is expected to close on or about Dec. 7th.
The company said that after the stock is sold, it intends of notify the Treasury of its intent to redeem all 215,000 shares of preferred stock it issued to the government last year. Trustmark said it understands that Treasury officials must approve any repayment of the loan, and it cannot predict when it might receive Treasury's approval. Any funds that are not used to repay the government will be used for general corporate purposes.
Trustmark said if it does redeem the preferred shares of stock, it also will seek to repurchase the warrant that it issued to the Treasury. It would have to get Treasury's approval for this move, as well as reach an agreement with the department about the fair market value of the warrant.
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