ZIONS BANCORPORATION ANNOUNCES PRICING OF SENIOR NOTES
Rhea-AI Summary
Zions Bancorporation (NASDAQ: ZION) priced $500,000,000 of fixed-to-floating rate senior notes due February 9, 2029, in a public offering exempt under Section 3(a)(2).
The notes settle on February 9, 2026, bear a fixed rate of 4.483% through February 9, 2028, then convert to Compounded SOFR + 1.055%. Proceeds will reduce short-term borrowings; a receive-fixed fair value hedge was executed to convert exposure to floating rate.
Positive
- Issued $500,000,000 senior notes maturing February 9, 2029
- Proceeds earmarked to reduce short-term borrowings
- Receive-fixed fair value hedge neutralizes fixed-period rate sensitivity
Negative
- Fixed-rate interest of 4.483% during initial two-year period
- Floating-rate exposure resumes at Compounded SOFR + 1.055% from 2/9/2028
- Optional full redemption on 2/9/2028 could require cash outlay
Key Figures
Market Reality Check
Peers on Argus
ZION gained 2.33% with elevated volume, while peers like CFR +0.8%, CBSH +1.17%, WTFC +0.63%, and ONB +0.43% also advanced; only BPOP was slightly negative at -0.39%, suggesting a generally constructive regional bank backdrop alongside this senior notes issuance.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Jan 30 | Capital return update | Positive | +0.8% | Share repurchase authorization and dividends on common and preferred stock. |
| Jan 20 | Quarterly earnings | Positive | +4.2% | Q4 2025 earnings growth, stronger margins, and solid credit metrics. |
| Dec 22 | Leadership change | Neutral | -1.6% | Retirement of Zions Bank CEO and appointment of internal successor. |
| Dec 03 | Earnings schedule | Neutral | +1.6% | Announcement of 2026 earnings release dates and call times. |
| Nov 18 | Conference appearance | Positive | +2.2% | Planned presentation at Goldman Sachs 2025 Financial Services Conference. |
Recent news has generally coincided with positive price reactions, especially around earnings and capital return announcements, with no clear instances of the stock selling off on good news in the provided history.
Over the past several months, Zions has reported solid financial performance and active capital management. Q4 2025 earnings showed higher net earnings and strong credit metrics, which was followed by a positive price move. The board then approved a $75 million Q1 2026 share repurchase and a $0.45 quarterly dividend, again met with a gain. Earlier, leadership changes at Zions Bank produced a modest decline, while scheduling of 2026 earnings dates and a major conference presentation both saw positive reactions. Today’s senior notes pricing fits into this pattern of balance sheet and capital structure adjustments following strong results.
Market Pulse Summary
This announcement details the pricing of $500,000,000 in fixed-to-floating rate senior notes, with a 4.483% fixed rate through February 9, 2028 and a spread of 1.055% over Compounded SOFR thereafter. Zions intends to use proceeds to reduce short-term borrowings and has implemented a fair value hedge to manage interest rate exposure. Against a backdrop of $89 billion in assets and $3.4 billion in 2025 net revenue, this fits into broader balance sheet management rather than a shift in strategy.
Key Terms
fixed-to-floating rate senior notes financial
cusip financial
AI-generated analysis. Not financial advice.
The annual interest rate for the fixed rate period, which runs from, and including the settlement date to, but excluding, February 9, 2028, is equal to
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
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 (http://www.sec.gov).
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SOURCE Zions Bancorporation
FAQ
What did Zions Bancorporation (ZION) announce about the $500 million senior notes on February 4, 2026?
What interest rates apply to ZION's new senior notes and when do they change?
How will Zions (ZION) use the net proceeds from the $500 million offering?
Did Zions (ZION) take steps to manage interest-rate exposure on the new notes?
When can Zions (ZION) redeem the new senior notes and at what price?
Who served as bookrunners for Zions Bancorporation's (ZION) senior notes offering?
