ZIONS BANCORPORATION ANNOUNCES PRICING OF SENIOR NOTES

Rhea-AI Summary

Zions Bancorporation (NASDAQ: ZION) has announced the pricing of $500 million fixed-to-floating rate senior notes due August 18, 2028. The notes will carry a 4.704% fixed interest rate until August 18, 2027, followed by a floating rate of Compounded SOFR plus 1.115%. The offering is expected to settle on August 18, 2025.

The bank plans to use the proceeds to reduce short-term borrowings and has executed a receive-fixed fair value hedge during the fixed rate period. Zions, with $89 billion in total assets and $3.1 billion in annual net revenue for 2024, operates across 11 western states under local management teams.

Positive

• Strategic debt offering of $500 million to reduce short-term borrowings
• Implementation of interest rate hedge to neutralize rate sensitivity
• Strong financial position with $89 billion in total assets
• Broad operational presence across 11 western states

Negative

• Additional long-term debt obligation with 4.704% fixed interest rate
• Potential interest rate risk after August 2027 when rate becomes floating

News Market Reaction

+2.67%

1 alert

+2.67% News Effect

On the day this news was published, ZION gained 2.67%, reflecting a moderate positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

SALT LAKE CITY, Aug. 11, 2025 /PRNewswire/ -- Zions Bancorporation, N.A. (NASDAQ: ZION) announced today that it priced $500,000,000 of fixed-to-floating rate senior notes (CUSIP: 98971DAD2) due August 18, 2028 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 August 18, 2025, 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, August 18, 2027, is equal to 4.704%. The annual interest rate for the floating rate period, which begins on August 18, 2027, will be equal to Compounded SOFR plus a spread of 1.115%. In addition to other customary redemption provisions at Zions' option, Zions may redeem the notes in whole, but not in part, on August 18, 2027 at 100% of the principal amount plus accrued but unpaid interest. Goldman Sachs & Co. LLC, J.P. Morgan, and BofA Securities 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, 2024, and annual net revenue of $3.1 billion in 2024. 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).

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SOURCE Zions Bancorporation

FAQ

What is the size and interest rate of Zions Bancorporation's (ZION) new senior notes offering?

Zions Bancorporation is offering $500 million in senior notes with a 4.704% fixed interest rate until August 18, 2027, after which it will float at Compounded SOFR plus 1.115%.

When will Zions Bancorporation's (ZION) new senior notes mature?

The senior notes will mature on August 18, 2028.

How will Zions Bancorporation (ZION) use the proceeds from the senior notes?

Zions plans to use the net proceeds to reduce short-term borrowings and has executed a receive-fixed fair value hedge during the fixed rate period.

What is Zions Bancorporation's (ZION) current asset size and revenue?

Zions Bancorporation has approximately $89 billion in total assets as of December 31, 2024, and generated annual net revenue of $3.1 billion in 2024.

In which states does Zions Bancorporation (ZION) operate?

Zions operates under local management teams in 11 western states: Arizona, California, Colorado, Idaho, Nevada, New Mexico, Oregon, Texas, Utah, Washington, and Wyoming.