Zions Bancorporation, N.A. has announced that it has priced $500 million in fixed-to-floating rate senior notes, due August 18, 2028. This public offering, which is exempt from registration under Section 3(a)(2) of the Securities Act of 1933, is expected to close on August 18, 2025, pending customary conditions.
Financial Technology Insights: PGIM Closes $4.2 Billion Middle Market Direct Lending Fund
For the fixed rate period from the settlement date through August 18, 2027 the notes will carry an annual interest rate of 4.704%. After that, they will switch to a floating rate based on Compounded SOFR plus 1.115%. Zions will also have the option to redeem the notes in full on August 18, 2027, at face value plus any accrued interest. The offering was managed by Goldman Sachs & Co. LLC, J.P. Morgan, and BofA Securities as joint bookrunners.
Financial Technology Insights: Palmer Square Launches Europe’s First Passive CLO ETF
The bank plans to use the proceeds to pay down short-term borrowings. Additionally, Zions has implemented a receive-fixed fair value hedge for the fixed rate period, which effectively turns the interest expense into a floating rate, helping offset any impact on interest rate sensitivity.
Financial Technology Insights: NWTN & Changer.ae Launch Middle East’s First Stablecoin Solution
Zions Bancorporation is a leading U.S. financial services company with around $89 billion in total assets as of December 31, 2024, and annual net revenue of $3.1 billion. Operating under local management teams and distinct brands, the bank serves customers across 11 western states, including Arizona, California, Colorado, Idaho, Nevada, New Mexico, Oregon, Texas, Utah, Washington, and Wyoming. Known for its strong customer satisfaction scores in small- and middle-market banking, Zions is also a top player in public finance advisory and Small Business Administration lending. The company is included in both the S&P MidCap 400 and NASDAQ Financial 100 indices.
To share your insights with the FinTech Newsroom, please write to us at sudipto@intentamplify.com