ZIONS BANCORPORATION ANNOUNCES PRICING OF SENIOR NOTES

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).

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

Argus Feb 5 session

+0.49% close to close Open Argus

Details

News Market Reaction – ZION

On Feb 5, the first trading day after this news, ZION closed 0.49% above the previous close.

Data tracked by StockTitan Argus for the Feb 5 session.

Key Figures

Senior notes issued: $500,000,000 Fixed interest rate: 4.483% Floating spread: 1.055% +4 more

Senior notes issued

$500,000,000

Fixed-to-floating rate senior notes due February 9, 2029

Fixed interest rate

4.483%

Annual rate from settlement to February 9, 2028

Floating spread

1.055%

Spread over Compounded SOFR from February 9, 2028

Call price

100%

Redemption at par on February 9, 2028, plus accrued interest

Total assets

$89 billion

Approximate total assets at December 31, 2025

Annual net revenue

$3.4 billion

Net revenue for full year 2025

Operating states

11 states

Western U.S. footprint for Zions’ local brands

Historical Context

5 past events · Latest: Jan 30

5 events

1. Jan 30

   Capital return update

   24h Move

   +0.8%

   Share repurchase authorization and dividends on common and preferred stock.

2. Jan 20

   Quarterly earnings

   24h Move

   +4.2%

   Q4 2025 earnings growth, stronger margins, and solid credit metrics.

3. Dec 22

   Leadership change

   24h Move

   -1.6%

   Retirement of Zions Bank CEO and appointment of internal successor.

4. Dec 03

   Earnings schedule

   24h Move

   +1.6%

   Announcement of 2026 earnings release dates and call times.

5. Nov 18

   Conference appearance

   24h Move

   +2.2%

   Planned presentation at Goldman Sachs 2025 Financial Services Conference.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

fixed-to-floating rate senior notes, cusip, section 3(a)(2) of the securities act of 1933, compounded sofr, +1 more

5 terms

fixed-to-floating rate senior notes financial

"it priced $500,000,000 of fixed-to-floating rate senior notes (CUSIP: 98971DAE0)"

A fixed-to-floating rate senior note is a debt security that pays interest at a set rate for an initial period and then switches to a variable rate linked to a market benchmark; “senior” means it has higher priority than other debt if the issuer faces trouble. For investors it matters because the switch changes income predictability and exposure to interest-rate swings, while senior status affects the relative safety and recovery prospects of the investment—think of it as a loan that starts with a steady paycheck and later becomes tied to the economy’s pulse.

cusip financial

"fixed-to-floating rate senior notes (CUSIP: 98971DAE0) due February 9, 2029"

A CUSIP is a nine-character alphanumeric code that uniquely identifies a U.S. or Canadian financial security—such as a stock, bond, or fund share—like a Social Security number for an investment. It matters to investors because brokers, exchanges and record-keepers use the CUSIP to match trades, track ownership, settle transactions and pull accurate records, reducing errors and ensuring money and securities go to the right place.

View in glossary

section 3(a)(2) of the securities act of 1933 regulatory

"in a public transaction exempt from registration under Section 3(a)(2) of the Securities Act of 1933"

Section 3(a)(2) of the Securities Act of 1933 says that debt and other securities issued or explicitly guaranteed by the U.S. federal government, a state, a municipality, or their agencies are not treated as securities that must be registered under that law. For investors this matters because those government-backed instruments generally carry lower regulatory filing and disclosure requirements and are seen as safer, government-backed IOUs, but they also often come with less issuer-level transparency than registered corporate securities.

compounded sofr financial

"floating rate period ... will be equal to Compounded SOFR plus a spread of 1.055%"

Compounded SOFR is an interest rate benchmark calculated by taking the daily Secured Overnight Financing Rate (SOFR) values over a set period and combining them to produce a single effective interest rate for that period. Think of it like rolling up many tiny daily interest charges into one total bill for the month or quarter; it determines the actual interest owed on floating-rate loans, bonds, and derivatives. Investors care because it directly affects borrowing costs, cash flows and the value of interest-sensitive securities, and it is widely used as a replacement for older benchmark rates.

fair value hedge financial

"Zions also executed a receive-fixed fair value hedge against the notes during the fixed rate period"

A fair value hedge is a risk-management technique where a company uses a financial contract to offset changes in the market value of a specific asset or liability, like locking in a price to protect against losses. Investors care because gains or losses from both the hedge and the hedged item flow through reported earnings together, which can reduce or reveal volatility in profit and the balance sheet value of holdings — much like insurance that smooths out the ups and downs of an owned item.

AI-generated analysis. How Rhea-AI works. Not financial advice.

See more from StockTitan in Google Search and AI answers. Adds StockTitan as a preferred source · opens Google

Add on Google Not now

SALT LAKE CITY, Feb. 4, 2026 /PRNewswire/ -- Zions Bancorporation, N.A. (NASDAQ: ZION) announced today that it priced $500,000,000 of fixed-to-floating rate senior notes (CUSIP: 98971DAE0) due February 9, 2029, 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 February 9, 2026, 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, February 9, 2028, is equal to 4.483%. The annual interest rate for the floating rate period, which begins on February 9, 2028, will be equal to Compounded SOFR plus a spread of 1.055%. In addition to other customary redemption provisions at Zions' option, Zions may redeem the notes in whole, but not in part, on February 9, 2028, at 100% of the principal amount plus accrued but unpaid interest. BofA Securities, Inc., J.P. Morgan Securities LLC, and Morgan Stanley & Co. LLC 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, 2025, and annual net revenue of $3.4 billion in 2025. 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 www.zionsbancorporation.com.

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).

View original content to download multimedia:https://www.prnewswire.com/news-releases/zions-bancorporation-announces-pricing-of-senior-notes-302679579.html

SOURCE Zions Bancorporation

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What did Zions Bancorporation (ZION) announce about the $500 million senior notes on February 4, 2026?

Zions priced $500,000,000 of fixed-to-floating senior notes due February 9, 2029. According to the company, the offering settles February 9, 2026, and is exempt under Section 3(a)(2) of the Securities Act.

What interest rates apply to ZION's new senior notes and when do they change?

The notes carry a fixed rate of 4.483% until February 9, 2028, then flip to floating. According to the company, the floating rate will be Compounded SOFR plus a spread of 1.055% starting February 9, 2028.

How will Zions (ZION) use the net proceeds from the $500 million offering?

Zions intends to use net cash proceeds to reduce short-term borrowings. According to the company, this is the stated purpose to lower near-term funding reliance and optimize liquidity and funding costs.

Did Zions (ZION) take steps to manage interest-rate exposure on the new notes?

Yes. Zions executed a receive-fixed fair value hedge for the fixed-rate period to convert interest expense to floating. According to the company, this hedge neutralizes interest rate sensitivity during the fixed period.

When can Zions (ZION) redeem the new senior notes and at what price?

Zions may redeem the notes in whole on February 9, 2028, at 100% of principal plus accrued interest. According to the company, other customary redemption provisions also apply at Zions' option.

Who served as bookrunners for Zions Bancorporation's (ZION) senior notes offering?

BofA Securities, J.P. Morgan Securities, and Morgan Stanley served as bookrunners. According to the company, those firms acted as joint bookrunners for the public transaction exempt from registration.