AG˹ٷ

STOCK TITAN

ZIONS BANCORPORATION ANNOUNCES PRICING OF SENIOR NOTES

Rhea-AI Impact
(Low)
Rhea-AI Sentiment
(Neutral)
Tags

Zions Bancorporation (NASDAQ: ZION) has announced the pricing of $500 million fixed-to-floating rate senior notes due August 18, 2028. The notes will carry a 4.704% fixed interest rate until August 18, 2027, followed by a floating rate of Compounded SOFR plus 1.115%. The offering is expected to settle on August 18, 2025.

The bank plans to use the proceeds to reduce short-term borrowings and has executed a receive-fixed fair value hedge during the fixed rate period. Zions, with $89 billion in total assets and $3.1 billion in annual net revenue for 2024, operates across 11 western states under local management teams.

Zions Bancorporation (NASDAQ: ZION) ha comunicato il pricing di 500 milioni di dollari di senior notes a tasso fisso-variabile con scadenza il 18 agosto 2028. I titoli prevedono un tasso fisso del 4,704% fino al 18 agosto 2027, per poi passare a un tasso variabile pari al Compounded SOFR più 1,115%. L'offerta dovrebbe regolarsi il 18 agosto 2025.

La banca intende utilizzare il ricavato per ridurre il debito a breve termine e ha stipulato una copertura di fair value in modalità receive-fixed durante il periodo a tasso fisso. Zions, con 89 miliardi di dollari di attività totali e 3,1 miliardi di dollari di ricavi netti annuali nel 2024, opera in 11 stati occidentali tramite team di gestione locali.

Zions Bancorporation (NASDAQ: ZION) anunció la fijación del precio de 500 millones de dólares en notas senior de tipo fijo a variable con vencimiento el 18 de agosto de 2028. Las notas tendrán un tipo fijo del 4,704% hasta el 18 de agosto de 2027, y posteriormente pasarán a un tipo variable de Compounded SOFR más 1,115%. Se espera que la operación se liquide el 18 de agosto de 2025.

El banco planea utilizar los fondos para reducir endeudamiento a corto plazo y ha ejecutado una cobertura de valor razonable en modalidad receive-fixed durante el periodo de tasa fija. Zions, con 89.000 millones de dólares en activos totales y 3.100 millones de dólares en ingresos netos anuales en 2024, opera en 11 estados del oeste con equipos de gestión locales.

Zions Bancorporation (NASDAQ: ZION)�(가) 만기 2028� 8� 18일인 5� 달러 규모� 고정-변� 이율 선순� 채권� 가격을 공시했습니다. � 채권은 2027� 8� 18일까지 � 4.704%� 고정 금리가 적용되며, 이후에는 Compounded SOFR� 1.115%� 더한 변� 금리� 전환됩니�. 해당 발행은 2025� 8� 18일에 결제� 예정입니�.

은행은 조달 자금� 단기 차입� 축소� 사용� 계획이며, 고정금리 기간 동안 수취 고정(receive-fixed) 방식� 공정가� 헤지� 체결했습니다. Zions� 총자� 890� 달러와 2024� 기준 연간 순수� 31� 달러� 보유하고 있으�, 서부 11� 주에� 지� 경영� 체제하에 영업하고 있습니다.

Zions Bancorporation (NASDAQ: ZION) a annoncé le prix de 500 millions de dollars de senior notes à taux fixe puis variable arrivant à échéance le 18 août 2028. Les titres porteront un taux fixe de 4,704% jusqu'au 18 août 2027, puis basculeront vers un taux variable égal au Compounded SOFR plus 1,115%. L'opération devrait être réglée le 18 août 2025.

La banque prévoit d'utiliser le produit pour réduire ses emprunts à court terme et a mis en place une couverture de juste valeur en mode receive-fixed pendant la période à taux fixe. Zions, avec 89 milliards de dollars d'actifs totaux et 3,1 milliards de dollars de revenus nets annuels pour 2024, opère dans 11 États de l'Ouest avec des équipes de direction locales.

Zions Bancorporation (NASDAQ: ZION) hat die Preisfestsetzung für 500 Millionen US-Dollar an fest-zu-variabel verzinsten Senior Notes mit Fälligkeit am 18. August 2028 bekanntgegeben. Die Anleihen tragen bis zum 18. August 2027 einen festen Zinssatz von 4,704% und laufen danach auf einen variablen Satz von Compounded SOFR plus 1,115%. Die Begebung soll am 18. August 2025 abgewickelt werden.

Die Bank plant, die Erlöse zur Reduzierung kurzfristiger Verbindlichkeiten zu verwenden und hat während der Festzinsperiode eine Receive-Fixed-Fair-Value-Hedge abgeschlossen. Zions verfügt über 89 Milliarden US-Dollar an Gesamtvermögen und 3,1 Milliarden US-Dollar an jährlichen Nettoumsätzen für 2024 und ist in 11 westlichen Bundesstaaten mit lokalen Managementteams tätig.

Positive
  • Strategic debt offering of $500 million to reduce short-term borrowings
  • Implementation of interest rate hedge to neutralize rate sensitivity
  • Strong financial position with $89 billion in total assets
  • Broad operational presence across 11 western states
Negative
  • Additional long-term debt obligation with 4.704% fixed interest rate
  • Potential interest rate risk after August 2027 when rate becomes floating

Insights

Zions' $500M senior note offering will reduce short-term debt exposure while implementing a hedging strategy that neutralizes interest rate risk.

Zions Bancorporation has priced a $500 million fixed-to-floating rate senior notes offering due in 2028, with an initial fixed rate of 4.704% until August 2027, followed by a floating rate period at Compounded SOFR plus 1.115%. This strategic debt issuance reveals several key financial maneuvers by the $89 billion regional bank.

The most significant aspect is Zions' execution of a receive-fixed fair value hedge against the notes during the fixed-rate period. This sophisticated hedging strategy effectively converts the interest expense to a floating rate and neutralizes the impact on interest rate sensitivity. This indicates management is actively positioning the bank's balance sheet to navigate the current interest rate environment without taking a directional bet on rates.

By using proceeds to reduce short-term borrowings, Zions is extending its debt maturity profile and potentially lowering its overall funding costs, especially if short-term rates remain elevated. This liability restructuring represents prudent balance sheet management for a mid-sized regional bank with $3.1 billion in annual net revenue.

The participation of major underwriters (Goldman Sachs, J.P. Morgan, and BofA Securities) signals strong institutional support for the offering. The 3-year term with an option to redeem at the 2-year mark provides Zions with flexibility to respond to changing market conditions while addressing immediate funding needs.

SALT LAKE CITY, Aug. 11, 2025 /PRNewswire/ -- Zions Bancorporation, N.A. (NASDAQ: ZION) announced today that it priced $500,000,000 of fixed-to-floating rate senior notes (CUSIP: 98971DAD2) due August 18, 2028 in a public transaction exempt from registration under Section 3(a)(2) of the Securities Act of 1933, as amended. The offering is expected to settle on August 18, 2025, subject to customary closing conditions.

The annual interest rate for the fixed rate period, which runs from, and including, the settlement date to, but excluding, August 18, 2027, is equal to 4.704%. The annual interest rate for the floating rate period, which begins on August 18, 2027, will be equal to Compounded SOFR plus a spread of 1.115%. In addition to other customary redemption provisions at Zions' option, Zions may redeem the notes in whole, but not in part, on August 18, 2027 at 100% of the principal amount plus accrued but unpaid interest. Goldman Sachs & Co. LLC, J.P. Morgan, and BofA Securities served as bookrunners for the offering.

Zions intends to use the net cash proceeds from this offering to reduce short-term borrowings. Zions also executed a receive-fixed fair value hedge against the notes during the fixed rate period, effectively converting the interest expense to a floating rate and neutralizing the impact on interest rate sensitivity.

Zions Bancorporation, N.A. is one of the nation's premier financial services companies with approximately $89 billion of total assets at December 31, 2024, and annual net revenue of $3.1 billion in 2024. Zions operates under local management teams and distinct brands in 11 western states: Arizona, California, Colorado, Idaho, Nevada, New Mexico, Oregon, Texas, Utah, Washington, and Wyoming. The Bank is a consistent recipient of national and state-wide customer survey awards in small- and middle-market banking, as well as a leader in public finance advisory services and Small Business Administration lending. In addition, Zions is included in the S&P MidCap 400 and NASDAQ Financial 100 indices. Investor information and links to local banking brands can be accessed at .

Forward-Looking Information
The Press Release may contain "forward-looking statements" as the term is defined in the Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and assumptions regarding future events or determinations, all of which are subject to known and unknown risks, uncertainties, and other factors that may cause the Bank's actual results, performance or achievements, industry trends, and results or regulatory outcomes to differ materially from those expressed or implied. Forward-looking statements include, among others: statements with respect to the beliefs, plans, objectives, goals, targets, commitments, designs, guidelines, expectations, anticipations, and future financial condition, results of operations and performance of Zions Bancorporation, National Association and its subsidiaries (collectively "Zions Bancorporation, N.A.," "the Bank," "we," "our," "us"); and statements preceded by, followed by, or that include the words "may," "might," "can," "continue," "could," "should," "would," "believe," "anticipate," "estimate," "forecasts," "expect," "intend," "target," "commit," "design," "plan," "projects," "will," and the negative thereof and similar words and expressions.

Such statements are based upon the current beliefs and expectations of the Bank's management and on information currently available to management. The forward-looking statements are intended to be subject to the safe harbor provided by Section 21E of the Securities Exchange Act of 1934, as amended, and the rules promulgated thereunder. These statements relate to the Bank's financial condition, results of operations, plans, objectives, future performance or business. The Bank does not undertake to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made.

Forward-looking statements are subject to significant risks and uncertainties. Forward-looking statements are not guarantees of future performance, nor should they be relied upon as representing the view of the Bank's management as of any subsequent date. Investors are cautioned against placing undue reliance on such statements. Actual results may differ materially from those presented, either expressly or impliedly, in the forward-looking statements. Factors that could cause actual results to differ materially from those described in the forward-looking statements can be found in the 2024 Form 10-K, the 2025 Form 10-Qs and elsewhere in the Bank's periodic reports and Current Reports filed on Form 8-K with the SEC and available at the SEC's internet site ().

Cision View original content to download multimedia:

SOURCE Zions Bancorporation

FAQ

What is the size and interest rate of Zions Bancorporation's (ZION) new senior notes offering?

Zions Bancorporation is offering $500 million in senior notes with a 4.704% fixed interest rate until August 18, 2027, after which it will float at Compounded SOFR plus 1.115%.

When will Zions Bancorporation's (ZION) new senior notes mature?

The senior notes will mature on August 18, 2028.

How will Zions Bancorporation (ZION) use the proceeds from the senior notes?

Zions plans to use the net proceeds to reduce short-term borrowings and has executed a receive-fixed fair value hedge during the fixed rate period.

What is Zions Bancorporation's (ZION) current asset size and revenue?

Zions Bancorporation has approximately $89 billion in total assets as of December 31, 2024, and generated annual net revenue of $3.1 billion in 2024.

In which states does Zions Bancorporation (ZION) operate?

Zions operates under local management teams in 11 western states: Arizona, California, Colorado, Idaho, Nevada, New Mexico, Oregon, Texas, Utah, Washington, and Wyoming.
Zions Bancorporation N A

NASDAQ:ZION

ZION Rankings

ZION Latest News

ZION Stock Data

7.60B
144.68M
1.79%
79.88%
3.97%
Banks - Regional
National Commercial Banks
United States
SALT LAKE CITY