BancorpSouth (BXS) in Tupelo, Miss., plans to redeem $125 million in trust-preferred securities.

The $13.4 billion-asset company said late Wednesday it would repurchase the debt on August 12.

BancorpSouth will fund the redemption with roughly $75 million in cash and $50 million in debt. The buyback is expected to save the company about $9.1 million in annual interest expense.

The company expects to take a charge of $2.9 million in the third quarter to reflect costs associated with issuing the securities that it has yet to write off.

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