Trustmark to offer $175 million in subordinated notes due 2035

Trustmark Corporation (NASDAQ:TRMK) announced Monday that it has entered into an agreement to issue and sell $175 million in aggregate principal amount of 6.00% fixed-to-floating rate subordinated notes due 2035. The offering is being conducted through an underwriting agreement with Keefe, Bruyette & Woods and Goldman Sachs & Co. LLC as underwriters.

According to a press release statement, the notes will be sold at an underwriting discount of 1.1%, resulting in net proceeds to Trustmark of approximately $173.1 million before deducting offering expenses. The company intends to use the proceeds to repay $125 million of its outstanding 3.625% fixed-to-floating rate subordinated notes due 2030, plus accrued interest, with the remainder allocated for general corporate purposes.

The offering is expected to close Thursday, subject to customary closing conditions. The notes will be issued under an existing subordinated indenture with Wilmington Trust, National Association, as trustee, and will be supplemented by a second supplemental indenture dated as of the closing date.

From the date of issuance to, but excluding, December 1, 2030, the notes will bear interest at a fixed annual rate of 6.00%, payable semi-annually in arrears on June 1 and December 1, beginning June 1, 2026. After that, the notes will accrue interest at a floating rate equal to the three-month Term SOFR plus 260 basis points, payable quarterly in arrears, until the maturity date of December 1, 2035, or earlier redemption.

The notes are unsecured and subordinated obligations of Trustmark. They will rank junior to the company’s existing and future senior indebtedness, equal with existing and future subordinated indebtedness of equal rank, and senior to junior subordinated debentures and other junior obligations. The notes are also effectively subordinated to all liabilities of Trustmark’s subsidiaries, including deposit liabilities.

Redemption of the notes may occur at Trustmark’s option under certain circumstances as outlined in the indenture.

This information is based on a statement issued through a Securities and Exchange Commission filing.

In other recent news, Trustmark Corporation reported its third-quarter 2025 earnings. The company posted an earnings per share (EPS) of $0.94, slightly exceeding the forecast of $0.93. However, Trustmark’s revenue fell short of expectations, coming in at $202.4 million compared to the anticipated $205.86 million. These figures highlight a mixed financial performance for the quarter. The earnings results reflect a minor EPS beat, but the revenue miss suggests challenges in meeting market expectations. The company’s performance and these recent developments are likely to be closely analyzed by investors and analysts alike.

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