TRMK Trustmark Corporation

On November 18, 2020, Trustmark Corporation (the “Company”) agreed to issue and sell (the “Offering”) $125,000,000 aggregate principal amount of its 3.625% Fixed-to-Floating Rate Subordinated Notes due 2030 (the “Notes”), pursuant to an Underwriting Agreement, dated as of November 18, 2020 (the “Underwriting Agreement”), with Morgan Stanley & Co. LLC and Piper Sandler & Co., acting as representatives of the several underwriters named in Schedule II thereto. The Offering will be completed pursuant to the prospectus filed with the Securities and Exchange Commission as part of the Company’s Registration Statement on Form S-3 (File Number: 333-250158), as supplemented by a preliminary prospectus supplement, a final prospectus supplement and free writing prospectuses, each dated November 18, 2020. The Notes will be sold at an underwriting discount of 1.2%, resulting in net proceeds to the Company of $123.5 million before deducting offering expenses. The Company intends to use the net proceeds from the Offering for general corporate purposes.

The Notes will be issued under the Subordinated Indenture, to be dated on or about November 25, 2020 (the “Subordinated Indenture”), between the Company and Wilmington Trust, National Association, as trustee (the “Trustee”), as supplemented by the First Supplemental Indenture, to be dated on or about November 25, 2020 (the “First Supplemental Indenture” and the Subordinated Indenture as supplemented thereby, the “Indenture”), between the Company and the Trustee.

From and including the date of issuance to, but excluding, December 1, 2025 or the date of earlier redemption, the Notes will bear interest at a fixed rate of 3.625% per year, payable semi-annually in arrears on June 1 and December 1 of each year, commencing on June 1, 2021. Thereafter, from and including December 1, 2025, to, but excluding, the maturity date, December 1, 2030, or the date of earlier redemption, the Notes will bear interest at a floating rate per year equal to the Benchmark rate, which is expected to be Three-Month Term SOFR (each as defined in the Indenture), plus 338.7 basis points, payable quarterly in arrears on March 1, June 1, September 1 and December 1 of each year, commencing on March 1, 2026. Notwithstanding the foregoing, if the Benchmark rate is less than zero, then the Benchmark rate shall be deemed to be zero.

The Notes are the Company’s unsecured, subordinated obligations and (i) rank junior in right of payment and upon liquidation to any of the Company’s existing and future Senior Indebtedness (as defined in the Indenture), whether secured or unsecured; (ii) rank equal in right of payment and upon liquidation with any of the Company’s existing and future subordinated indebtedness the terms of which provide that such indebtedness ranks equally with promissory notes, bonds, debentures and other evidences of indebtedness of types that include the Notes; (iii) rank senior in right of payment and upon liquidation with the Company’s existing junior subordinated debentures underlying outstanding trust preferred securities and any indebtedness the terms of which provide that such indebtedness ranks junior to promissory notes, bonds, debentures and other types of indebtedness that include the Notes; and (iv) is effectively subordinated to all of the existing and future indebtedness, deposits and other liabilities of Trustmark National Bank and the Company’s other current and future subsidiaries, including, without limitation, Trustmark National Bank’s liabilities to depositors in connection with the deposits in Trustmark National Bank, its liabilities to general creditors and its liabilities arising during the ordinary course or otherwise.

The Notes may be redeemed at the Company’s option under certain circumstances, as described in the Indenture.

The foregoing summary of the terms of the Underwriting Agreement, the Indenture and the Notes does not purport to be complete and is subject to, and qualified in its entirety by, the full text of (i) the Underwriting Agreement, (ii) the form of Subordinated Indenture, (iii) the form of First Supplemental Indenture and (iv) the form of the Notes, each of which is attached hereto as an exhibit and is incorporated herein by reference.