ZIONS BANCORPORATION ANNOUNCES PRICING OF SENIOR NOTES

Rhea-AI Summary

Zions Bancorporation (NASDAQ: ZION) priced $500 million of fixed-to-floating rate senior notes (CUSIP 98971D AF7) due October 1, 2029, in a public offering exempt from registration under Section 3(a)(2). Settlement is expected on July 31, 2026, subject to customary conditions.

The notes carry a fixed annual rate of 5.239% until October 1, 2028, then a floating rate of Compounded SOFR plus 1.08%. Zions may redeem the notes in whole on October 1, 2028 at 100% of principal plus accrued interest. According to the company, net proceeds will be used to reduce short-term borrowings, and a receive-fixed fair value hedge has been executed for the fixed period, converting interest expense to a floating rate.

Positive

• $500 million fixed-to-floating senior notes priced, due 2029
• Use of proceeds to reduce short-term borrowings
• Receive-fixed hedge converts fixed coupon to floating-rate expense
• 5.239% fixed rate locked until October 1, 2028

Negative

• New issuance adds $500 million in senior debt obligations

Market Context

CFR’s 3.28% move at publication supplied a peer comparison while ZION announced debt refinancing int...

Analysis

CFR’s 3.28% move at publication supplied a peer comparison while ZION announced debt refinancing intended to reduce short-term borrowings. Recent insider activity was net selling, a platform-record risk factor to monitor.

Key Figures

Senior notes offering: $500,000,000 Fixed interest rate: 5.239% Floating-rate spread: 1.08% +4 more

7 metrics

Senior notes offering $500,000,000 Fixed-to-floating rate senior notes due October 1, 2029

Fixed interest rate 5.239% From settlement date through September 30, 2028

Floating-rate spread 1.08% Spread over Compounded SOFR beginning October 1, 2028

Expected settlement July 31, 2026 Subject to customary closing conditions

Optional redemption 100% of principal amount Redeemable on October 1, 2028, plus accrued unpaid interest

Total assets Approximately $89 billion At December 31, 2025

Annual net revenue $3.4 billion Fiscal year 2025

Historical Context

5 past events · Latest: Jul 20 (Positive)

Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
Jul 20	Q2 earnings report	Positive	-4.0%	Reported Q2 earnings and higher EPS, but shares fell 3.95% over 24 hours.
Jul 06	Leadership appointment	Positive	+0.1%	Appointed Ty Aslin as commercial banking director; shares gained 0.13% over 24 hours.
Jun 02	Board appointment	Positive	-2.0%	Elected Daniel J. Ryan to board; shares fell 2.03% over 24 hours.
May 27	Conference presentation	Neutral	-0.7%	Announced Morgan Stanley conference presentation; shares fell 0.67% over 24 hours.
May 05	Credit facility	Positive	+1.6%	Provided Buyerlink a $40 million credit facility; shares gained 1.64% over 24 hours.

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

Pattern Detected

The available record showed negative reactions to three of five recent events, including earnings and a board appointment, while two operational announcements aligned positively.

Key Terms

fixed-to-floating rate senior notes, compounded sofr, fair value hedge

3 terms

fixed-to-floating rate senior notes financial

"priced $500,000,000 of fixed-to-floating rate senior notes"

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.

compounded sofr financial

"will be equal to Compounded SOFR plus a spread of 1.08%"

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

"executed a receive-fixed fair value hedge against the notes"

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.

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SALT LAKE CITY, July 28, 2026 /PRNewswire/ -- Zions Bancorporation, N.A. (NASDAQ: ZION) announced today that it priced $500,000,000 of fixed-to-floating rate senior notes (CUSIP: 98971D AF7) due October 1, 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 July 31, 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, October 1, 2028, is equal to 5.239%. The annual interest rate for the floating rate period, which begins on October 1, 2028, will be equal to Compounded SOFR plus a spread of 1.08%. In addition to other customary redemption provisions at Zions' option, Zions may redeem the notes in whole, but not in part, on October 1, 2028, at 100% of the principal amount plus accrued but unpaid interest. Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, and RBC Capital Markets, 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 2025 Form 10-K, the 2026 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 (NASDAQ: ZION) announce on July 28, 2026 about senior notes?

Zions Bancorporation announced it priced $500 million of fixed-to-floating rate senior notes due October 1, 2029. According to Zions, the notes will settle on July 31, 2026, in a public transaction exempt from registration under Section 3(a)(2).

What are the key terms of the ZION fixed-to-floating senior notes due October 1, 2029?

The notes have a fixed annual rate of 5.239% until October 1, 2028, then float at Compounded SOFR plus 1.08%. According to Zions, the notes are senior unsecured obligations with a scheduled maturity on October 1, 2029, and standard redemption provisions.

How will Zions Bancorporation (ZION) use the $500 million senior notes proceeds?

Zions plans to use the net cash proceeds from the $500 million senior notes to reduce short-term borrowings. According to Zions, this refinancing step targets its funding mix and does not specify any other primary uses for the raised capital.

What is the interest rate structure on Zions Bancorporation’s new ZION senior notes?

The notes pay a 5.239% fixed annual rate from settlement to October 1, 2028, then a floating rate of Compounded SOFR plus 1.08%. According to Zions, this fixed-to-floating structure is complemented by a receive-fixed fair value hedge during the fixed period.

When can Zions Bancorporation redeem the new senior notes and at what price?

Zions may redeem the notes in whole, but not in part, on October 1, 2028 at 100% of principal plus accrued, unpaid interest. According to Zions, this call date coincides with the transition from fixed to floating interest.

How does Zions Bancorporation hedge interest rate risk on its 2026 senior notes issuance?

Zions executed a receive-fixed fair value hedge on the notes during the fixed rate period, effectively converting interest expense to floating. According to Zions, this hedge is intended to neutralize the offering’s impact on the bank’s overall interest rate sensitivity.