Zions Bancorporation Announces $500 Million Offering and Capital Actions

Zions Bancorporation Prices Subordinated Notes Offering

Zions Bancorporation, N.A. (NASDAQ: ZION) has formally priced a significant offering of Fixed-to-Floating Rate Subordinated Notes totaling $500 million. This noteworthy financial move is guided by the company's intent to bolster its capital structure and strategically manage its borrowing levels.

Details on the Offering

Interest Rates and Payment Structure

The issued notes are set with a fixed interest rate of 6.816% for a period effective until the end of the specified term. Following this initial fixed rate period, the notes will transition to a floating rate that corresponds to the Compounded SOFR, marked up by a 2.830% spread starting from November 19, 2034. The settlement for this transaction is anticipated to occur under customary closing conditions, marking a significant advancement for the company.

Purpose of the Offering

Zions Bancorporation plans to dedicate the net proceeds from this offering primarily to reducing short-term borrowings. Additionally, the funds may be utilized for the redemption of preferred stock and other outstanding securities, which includes various subordinated debts. These strategic actions are aimed at enhancing the overall financial stability of the corporation, ensuring it remains agile and responsive in a dynamic market.

Authorized Capital Actions

In conjunction with the offering, Zions Bancorporation's board of directors has approved several decisive capital actions that directly relate to the company's commitment to optimizing its capital structure.

Preferred Stock Redemptions

• The complete redemption of Series G Preferred Stock at $1,000 per share, along with any declared and unpaid dividends.
• The redemption of Series I Preferred Stock on similar favorable terms, ensuring a smooth transition in its equity structure.
• A similar full redemption of Series J Preferred Stock has also been authorized.

Subordinated Notes Redemption

Additionally, the company plans to redeem approximately $87.9 million in 6.95% Fixed-to-Floating Rate Subordinated Notes, showcasing a proactive approach to managing its long-term obligations.

Current Financial Standing

As of the latest update, Zions Bancorporation reported a robust net revenue of approximately $3.1 billion in 2023, coupled with total assets amounting to nearly $87 billion. Founded in 1873, Zions continues to thrive as a leading financial institution, recognized for exceptional service and performance across the western United States.

A Leader in Financial Services

Zions operates under distinct brands and local management teams in multiple states, which positions it strategically within the competitive financial services landscape. The firm is not just noted for its sound financial practices but also for its leadership in areas like public finance advisory services and Small Business Administration lending.

Frequently Asked Questions

What is the purpose of Zions Bancorporation's recent offering?

The recent offering primarily aims to reduce short-term borrowings and facilitate the redemption of preferred stock and outstanding debt to optimize the capital structure.

What are the interest rates for the newly priced notes?

The notes feature an initial fixed rate of 6.816%, transitioning to a floating rate based on Compounded SOFR plus a spread of 2.830% after a certain period.

When is the settlement date for the offering?

The settlement for the offering is expected to occur under standard closing conditions on November 19, 2024.

How much total preferred stock is being redeemed?

Zions plans to redeem several series of preferred stock, including Series G, I, and J, enhancing its financial flexibility.

What is Zions Bancorporation's current financial standing?

As of the latest financial report, Zions reported a net revenue of $3.1 billion with total assets of approximately $87 billion, showcasing its robust market position.

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