In the news release, BancorpSouth Announces Redemption of Certain Trust Preferred Securities, issued June 26, 2013 by BancorpSouth, Inc. over PR Newswire, we are advised by the company that the first paragraph, first sentence, should read "on August 12, 2013 " rather than "within the next 60 days" as originally issued inadvertently. The complete, corrected release follows:
BancorpSouth Announces Redemption of Certain Trust Preferred Securities
TUPELO, Miss., June 26, 2013 /PRNewswire/ -- BancorpSouth, Inc. (NYSE: BXS) announced that BancorpSouth Capital Trust I will redeem all of its issued and outstanding 8.15 percent trust preferred securities (NYSE: BXS-PrA) on August 12, 2013. 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 Company. The redemption will be funded with approximately $75 million of available cash and approximately $50 million of borrowings. The redemption price is 100% 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 notice from the trustee, The Bank of New York Mellon Corporation, 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 the Company 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 Company common stock, net of tax, to write-off unamortized issuance costs associated with the original issuance of the trust preferred securities.BancorpSouth, Inc. is a financial holding company headquartered in Tupelo, Mississippi, with $13.4 billion in assets. BancorpSouth Bank, a wholly-owned subsidiary of BancorpSouth, Inc., operates 292 commercial banking, mortgage, insurance, trust and broker/dealer locations in Alabama, Arkansas, Florida, Louisiana, Mississippi, Missouri, Tennessee and Texas, including an insurance location in Illinois. Forward-Looking Statements