SALT
LAKE CITY, Nov. 14, 2024 /PRNewswire/ --
Zions Bancorporation, N.A. (NASDAQ: ZION) announced today that
it successfully priced $500,000,000
of Fixed-to-Floating Rate Subordinated Notes (CUSIP: 98971DAC4) due
November 19, 2035 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 November 19, 2024, subject
to customary closing conditions.
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 6.816%. The
interest rate for the floating rate period, which begins on
November 19, 2034, will be equal to
Compounded SOFR plus a spread of 2.830%. J.P. Morgan Securities LLC
and RBC Capital Markets, LLC served as book runners for the
offering.
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 per share (equivalent to $25 per depositary share), plus any declared and
unpaid dividends, without accumulation of any undeclared
dividends;
- Full redemption of its Series I Preferred Stock (CUSIP:
989701BD8) at a redemption price equal to $1,000 per share, plus any declared and unpaid
dividends, without accumulation of any undeclared dividends;
- Full redemption of its Series J Preferred Stock (CUSIP:
989701BF3) at a redemption price equal to $1,000 per share, plus any declared and unpaid
dividends, without accumulation of any undeclared dividends;
and
- Full redemption of $87,890,550
aggregate principal amount of 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 $373 million and the aggregate outstanding amount
of the 6.95% Fixed-to-Floating Rate Subordinated Notes due
September 15, 2028 was $88 million. These actions are expected
to take place during the fourth quarter of 2024.
Zions Bancorporation, N.A. is one of the nation's premier
financial services companies with 2023 net revenue of $3.1 billion and approximately $87 billion of total assets. Founded in 1873,
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 400 and NASDAQ Financial
100 indices. Investor information and links to local banking brands
can be accessed at zionsbancorporation.com.
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 United States credit ratings, or other
economic disruptions; and The effects of wars and geopolitical
conflicts, such as the ongoing war between Russia and Ukraine, the war in the Middle East, and other local, national, or
international disasters, crises, or conflicts that may occur in the
future.
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.
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SOURCE Zions Bancorporation
