Zions Bancorporation successfully priced $500,000,000 of Fixed-to-Floating Rate Subordinated Notes due November 19, 2035. The notes carry a fixed interest rate of 6.816% for the period until November 19, 2034. This public offering is expected to settle on November 19, 2024.
The net cash proceeds from this offering are intended to reduce short-term borrowings. Additionally, Zions plans to use the proceeds for the partial or full redemption of outstanding preferred stock and other subordinated debt. The board of directors authorized the 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 September 15, 2028.
These capital actions are expected to take place during the fourth quarter of 2024. This strategic move aims to optimize the company's capital structure and manage its funding costs. The offering demonstrates Zions' proactive approach to financial management.
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