ZIONS BANCORPORATION PRICES PUBLIC OFFERING OF SUBORDINATED NOTES AND ANNOUNCES ADDITIONAL CAPITAL ACTIONS
Zions Bancorporation (NASDAQ: ZION) has priced a $500 million Fixed-to-Floating Rate Subordinated Notes offering due November 19, 2035. The notes carry a 6.816% interest rate for the fixed rate period until November 19, 2034, followed by Compounded SOFR plus 2.830% for the floating rate period. The company plans to use proceeds to reduce short-term borrowings and redeem preferred stock and other securities. Additionally, the board has authorized the full redemption of Series G, I, and J Preferred Stock totaling $373 million, and $88 million of 6.95% Fixed-to-Floating Rate Subordinated Notes due 2028.
Zions Bancorporation (NASDAQ: ZION) ha fissato un'offerta di note subordinate Fixed-to-Floating Rate del valore di 500 milioni di dollari, in scadenza il 19 novembre 2035. Le note presentano un tasso di interesse del 6,816% per il periodo a tasso fisso fino al 19 novembre 2034, seguito da SOFR composto più 2,830% per il periodo a tasso variabile. L'azienda prevede di utilizzare i proventi per ridurre i prestiti a breve termine e riscattare azioni privilegiate e altri titoli. Inoltre, il consiglio ha autorizzato il riscatto totale delle azioni privilegiate di Serie G, I e J per un totale di 373 milioni di dollari, e 88 milioni di dollari di note subordinate Fixed-to-Floating Rate al 6,95% in scadenza nel 2028.
Zions Bancorporation (NASDAQ: ZION) ha establecido una oferta de bonos subordinados a tasa fija-variable por un monto de 500 millones de dólares, con fecha de vencimiento el 19 de noviembre de 2035. Los bonos llevan un tasa de interés del 6.816% durante el período de tasa fija hasta el 19 de noviembre de 2034, seguido de SOFR compuesto más 2.830% para el período de tasa variable. La empresa planea utilizar los ingresos para reducir los préstamos a corto plazo y redimir acciones preferentes y otros valores. Además, la junta ha autorizado la redención total de las acciones preferentes de Serie G, I y J, que totalizan 373 millones de dólares, y 88 millones de dólares en bonos subordinados a tasa fija-variable al 6.95% que vencen en 2028.
자이언스 뱅코포레이션 (NASDAQ: ZION)은 2035년 11월 19일 만기인 5억 달러 규모의 고정-변동 금리 후순위 채권 발행 가격을 책정했습니다. 이 채권은 2034년 11월 19일까지 고정 금리 기간 동안 6.816%의 이자율을 가지며, 이후 변동 금리 기간에는 SOFR 복리 플러스 2.830%가 적용됩니다. 이 회사는 수익금을 단기 차입금 상환 및 우선주 및 기타 증권의 매입에 사용할 계획입니다. 추가적으로 이사회는 총 3억 7천300만 달러의 G, I 및 J 시리즈 우선주의 완전 매입을 승인했으며, 2028년 만기인 6.95% 고정-변동 금리 후순위 채권 8천800만 달러도 포함됩니다.
Zions Bancorporation (NASDAQ: ZION) a fixé le prix d'une émission de notes subordonnées à taux fixe-variable d'un montant de 500 millions de dollars, échéance le 19 novembre 2035. Les notes portent un taux d'intérêt de 6,816% pour la période à taux fixe jusqu'au 19 novembre 2034, suivi du SOFR composé plus 2,830% pour la période à taux variable. L'entreprise prévoit d'utiliser les produits pour réduire les emprunts à court terme et racheter des actions privilégiées et d'autres titres. De plus, le conseil d'administration a autorisé le rachat complet des actions privilégiées de série G, I et J d'un montant total de 373 millions de dollars, ainsi que 88 millions de dollars de notes subordonnées à taux fixe-variable de 6,95% échéant en 2028.
Zions Bancorporation (NASDAQ: ZION) hat ein Angebot für nachrangige Anleihen mit festem und variablem Zinssatz in Höhe von 500 Millionen Dollar mit Fälligkeit am 19. November 2035 bepreist. Die Anleihen tragen einen Zinssatz von 6,816% für den festen Zeitraum bis zum 19. November 2034, gefolgt von einem aufaddierten SOFR zuzüglich 2,830% für den variablen Zeitraum. Das Unternehmen plant, die Erlöse zu verwenden, um kurzfristige Kredite abzubauen und Vorzugsaktien sowie andere Wertpapiere zurückzukaufen. Darüber hinaus hat der Vorstand die vollständige Einlösung der Vorzugsaktien der Serien G, I und J in Höhe von insgesamt 373 Millionen Dollar und 88 Millionen Dollar in nachrangigen Anleihen mit festem und variablem Zinssatz von 6,95%, die 2028 fällig werden, genehmigt.
- Successfully priced $500 million subordinated notes offering
- Strategic debt restructuring to reduce short-term borrowings
- Strong financial position with $3.1 billion net revenue in 2023
- Substantial asset base of approximately $87 billion
- Taking on new long-term debt with 6.816% interest rate
- Significant redemption obligations totaling $461 million
Insights
This significant capital restructuring initiative by Zions Bancorporation involves a
This refinancing move demonstrates proactive capital management, potentially reducing the bank's overall cost of capital given current market conditions. The replacement of preferred stock with subordinated debt could improve the bank's capital efficiency while maintaining regulatory capital requirements. The fixed-to-floating rate structure provides interest rate risk management benefits, with the floating rate component offering protection against future rate increases after 2034.
The interest rate for the fixed rate period, which runs from, and including, the settlement date to, but excluding, November 19, 2034, is equal to
Zions intends to use the net cash proceeds from this offering to reduce short term-borrowings and for the partial or full redemption of outstanding shares of preferred stock or depositary shares representing shares of preferred stock and redemptions of other outstanding securities, including other subordinated debt. This press release does not constitute a notice of redemption with respect to any outstanding series of Zions' preferred stock or depositary shares representing shares of preferred stock or subordinated debt nor an obligation to issue a notice of redemption for any outstanding series of Zions preferred stock or depositary shares representing shares of preferred stock or subordinated debt. Any such notice, if given, will only be given in accordance with the provisions of such outstanding series of preferred stock or depositary shares representing shares of preferred stock or subordinated debt, as applicable.
Additionally, the Zions board of directors has authorized the following capital actions:
- Full redemption of its Series G Preferred Stock (CUSIP: 989701859) at a redemption price equal to
$1,000 $25 - Full redemption of its Series I Preferred Stock (CUSIP: 989701BD8) at a redemption price equal to
$1,000 - Full redemption of its Series J Preferred Stock (CUSIP: 989701BF3) at a redemption price equal to
$1,000 - Full redemption of
$87,890,550 6.95% Fixed-to-Floating Rate Subordinated Notes due September 15, 2028 (CUSIP: 989701818) at a redemption price equal to the principal amount being redeemed plus any accrued interest.
At September 30, 2024, the aggregate amount of the Series G Preferred Stock, Series I Preferred Stock, and Series J Preferred Stock was
Zions Bancorporation, N.A. is one of the nation's premier financial services companies with 2023 net revenue of
Forward-Looking Information
This press release includes "forward-looking statements" as that 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 our 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 or 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.
Forward-looking statements are not guarantees, nor should they be relied upon as representing management's views as of any subsequent date. Actual results and outcomes may differ materially from those presented. Although the following list is not comprehensive, important factors that may cause material differences include: The quality and composition of our loan and securities portfolios and the quality and composition of our deposits; Changes in general industry, political, and economic conditions, including elevated inflation, economic slowdown or recession, or other economic challenges; changes in interest and reference rates, which could adversely affect our revenue and expenses, the value of assets and liabilities, and the availability and cost of capital and liquidity; deterioration in economic conditions that may result in increased loan and leases losses; The effects of newly enacted and proposed regulations affecting us and the banking industry, as well as changes and uncertainties in applicable laws, and fiscal, monetary, regulatory, trade, and tax policies, and actions taken by governments, agencies, central banks, and similar organizations, including those that result in decreases in revenue; increases in bank fees, insurance assessments and capital standards; and other regulatory requirements; Competitive pressures and other factors that may affect aspects of our business, such as pricing and demand for our products and services, and our ability to recruit and retain talent; The impact of technological advancements, digital commerce, artificial intelligence, and other innovations affecting the banking industry; Our ability to complete projects and initiatives and execute on our strategic plans, manage our risks, control compensation and other expenses, and achieve our business objectives; Our ability to develop and maintain technology, information security systems, and controls designed to guard against fraud, cybersecurity, and privacy risks; Our ability to provide adequate oversight of our suppliers or prevent inadequate performance by third parties upon whom we rely for the delivery of various products and services; Natural disasters, pandemics, catastrophic events, and other emergencies and incidents and their impact on our and our customers' operations and business and communities, including the increasing difficulty in, and the expense of, obtaining property, auto, business, and other insurance products; Governmental and social responses to environmental, social, and governance issues, including those with respect to climate change; Securities and capital markets behavior, including volatility and changes in market liquidity and our ability to raise capital; The possibility that our recorded goodwill could become impaired, which may have an adverse impact on our earnings and shareholders' equity; The impact of bank closures or adverse developments at other banks on general investor sentiment regarding the stability and liquidity of banks; Adverse news and other expressions of negative public opinion whether directed at us, other banks, the banking industry, or otherwise that may adversely affect our reputation and that of the banking industry generally; Protracted congressional negotiations and political stalemates regarding government funding and other issues, including those that increase the possibility of government shutdowns, downgrades in
Factors that could cause our actual results, performance or achievements, industry trends, and results or regulatory outcomes to differ materially from those expressed or implied in the forward-looking statements are discussed in our 2023 Form 10-K and subsequent filings with the Securities and Exchange Commission (the "SEC"), and are available on our website (www.zionsbancorporation.com) and from the SEC (www.sec.gov).
We caution against the undue reliance on forward-looking statements, which reflect our views only as of the date they are made. Except to the extent required by law, we specifically disclaim any obligation to update any factors or to publicly announce the revisions to any forward-looking statements to reflect future events or developments.
View original content to download multimedia:https://www.prnewswire.com/news-releases/zions-bancorporation-prices-public-offering-of-subordinated-notes-and-announces-additional-capital-actions-302306461.html
SOURCE Zions Bancorporation
FAQ
What is the interest rate on Zions Bancorporation's (ZION) new subordinated notes?
How much preferred stock is Zions Bancorporation (ZION) redeeming in Q4 2024?
What is the size of Zions Bancorporation's (ZION) November 2024 notes offering?
When will Zions Bancorporation's (ZION) new notes mature?
