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.