#United States #Senior Notes #Financial Services #Salt Lake City #Zions Bancorporation

Zions Bancorporation Prices Senior Notes Offering

Zions Bancorporation, N.A. (NASDAQ: ZION), headquartered in Salt Lake City, has recently set the price for its latest offering of senior notes, amounting to a substantial $500 million. This move is part of the bank's ongoing strategy to bolster its financial stability and reduce short-term debt in a competitive lending landscape.

The fixed-to-floating rate senior notes, identified by CUSIP number 98971DAD2, are set to mature on August 18, 2028. The pricing reflects an annual interest rate of 4.704% for the initial fixed rate period, which will extend from the settlement date of August 18, 2025, until August 18, 2027. Upon transitioning to the floating rate period starting August 18, 2027, the interest rate will be defined as Compounded SOFR plus a margin of 1.115%.

This offering expects to close on August 18, 2025, pending standard closing conditions that are customary to such transactions. Notably, Zions Bancorporation retains the discretion to redeem these notes in whole after the fixed-rate period concludes.

To facilitate the execution of this transaction, prominent financial institutions including Goldman Sachs & Co. LLC, J.P. Morgan, and BofA Securities operated as lead bookrunners, showcasing the credibility and significant interest from major players in the finance sector.

The strategic intent of this offering is clear: the net proceeds are earmarked for managing and reducing short-term borrowings. Following a prudent financial strategy, Zions has also implemented a receive-fixed fair value hedge against these notes during the initial fixed-rate period. This innovative financial maneuver allows the company to effectively transition its interest expenses to a floating rate, mitigating potential risks associated with interest rate fluctuations.

Zions Bancorporation stands out as one of the leading financial corporations across the United States. As of December 31, 2024, it reported total assets of approximately $89 billion alongside an impressive annual net revenue of $3.1 billion. The company’s expansive footprint spans across 11 western states, employing distinct local management teams and brands that cater to regional needs. These states include Arizona, California, Colorado, Idaho, Nevada, New Mexico, Oregon, Texas, Utah, Washington, and Wyoming.

In addition to offering comprehensive banking solutions, Zions Bank consistently receives accolades in various customer satisfaction surveys, particularly excelling in small- and middle-market banking. They are also recognized leaders in public finance advisory services and Small Business Administration lending, thus affirming their commitment to community investment and economic development.

The company’s stock is indexed in distinguished financial benchmarks such as the SP MidCap 400 and the NASDAQ Financial 100, speaking volumes about its market position and trust from the investor community.

Zions Bancorporation's forward-looking statements convey optimism amid dynamic market conditions, focusing on their strategic growth initiatives and robust operational performance. However, as with any financial forecasts, they are subject to inherent risks and uncertainties that could impact the actual performance against expectations set forth.

As Zions continues its trajectory of growth and resilience in the banking sector, the pricing of these senior notes is a hallmark event indicating their steadfast prioritization of a sound financial foundation and commitment towards fulfilling customer needs sustainably. For further insights and updates on Zions and its consumer banking divisions, readers can visit Zions Bancorporation's website.