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

Zions Bancorporation Prices New Senior Notes Offering

On July 28, 2026, Zions Bancorporation, based in Salt Lake City, announced the pricing of $500 million in fixed-to-floating rate senior notes. This strategic move comes as part of its efforts to strengthen its financial footing and improve cash management. The announcement was made public via a press release detailing the specifics of the notes offering.

The senior notes, which carry the CUSIP number 98971D AF7, are due on October 1, 2029. The offering is classified as a public transaction that falls under exemptions from registration as outlined in Section 3(a)(2) of the Securities Act of 1933. This is an important regulatory detail, indicating that the offering is compliant with federal regulations while also providing necessary funding for Zions' operational strategies.

Interest Structure and Redemption Provisions

The fixed interest rate on the notes is set at 5.239% for the period leading up to October 1, 2028. Following this, the notes will transition to a floating rate tied to Compounded SOFR, with an additional spread of 1.08%. This transition in interest rate structures reflects Zions’ proactive approach to managing its financing costs and responding to market conditions.

Furthermore, the bank has included standard redemption provisions, allowing it to redeem the notes in whole but not in part on October 1, 2028, at par plus any accrued and unpaid interest. This flexibility is vital for the bank to manage its liabilities effectively based on future market conditions.

Usage of Proceeds

Zions Bancorporation intends to utilize the net proceeds from this offering to reduce its short-term borrowings. This plan is a key component of their overall financial strategy to enhance liquidity and reduce financing costs, especially in a fluctuating interest rate environment.

Additionally, the bank executed a receive-fixed fair value hedge against these notes during the fixed rate period. This move effectively converts the interest expense into a floating rate, helping the bank to neutralize its exposure to interest rate changes, thereby managing its financial sensitivity more effectively.

About Zions Bancorporation

Founded in 1873, Zions Bancorporation is recognized as one of the premier financial services firms in the United States. As of December 31, 2025, the bank reported total assets of approximately $89 billion and had an annual net revenue of $3.4 billion for that year. The bank operates under various regional brands across eleven western states, including Arizona, California, and Texas, leveraging local management teams to better serve its diverse client base. Zions has established a strong reputation as a leader in public finance advisory services and Small Business Administration lending, and it frequently garners awards in customer satisfaction within the banking sector.

Investors and stakeholders can access further details and insights into Zions' performance and services by visiting Zions Bancorporation’s official website.

Forward-Looking Statements

The announcement also carries forward-looking statements, emphasizing that the outcomes and expectations discussed may be subject to various risks and uncertainties. Investors are advised to consider these factors when evaluating the bank’s future performance and should refer to Zions’ periodic reports filed with the SEC for more comprehensive risk disclosures.

Overall, this notes offering represents a strategic financial maneuver by Zions Bancorporation to enhance its operational flexibility and respond effectively to market dynamics, thereby strengthening its position in the competitive banking landscape.