Trustmark to sell $215M in stock to Treasury

JACKSON, Miss. - Financial services company Trustmark Corp. said Thursday it will sell $215 million in stock to the U.S. Treasury Department as part of the government's bank investment plan.

The parent of Trustmark Bank, which operates more than 150 offices in Florida, Mississippi, Tennessee and Texas, said it will issue nonvoting senior preferred shares to Treasury as part of the agency's Capital Purchase Program.

The program, part of its $700 billion financial rescue package passed in September, will see the government pour $250 billion into stock purchases of various institutions.

In conjunction with the purchase, Treasury will receive warrants to purchase Trustmark common shares with a market value of $32.3 million. The exercise price will be the market price at the time of issuance, calculated on a 20-day trading average.

Treasury's purchase is expected to occur within 30 days.

Shares closed earlier down 26 cents at $21.33. The Jackson, Miss.-based bank has total assets of about $9.08 billion.

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