Zions Bancorporation Prices $500M Senior Notes with Fixed-to-Floating Rate
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3d ago
0mins
Should l Buy ZION?
Source: seekingalpha
- Bond Issuance Details: Zions Bancorporation priced $500 million in fixed-to-floating rate senior notes maturing on February 9, 2029, with a fixed annual interest rate of 4.483% for the initial period, providing a stable funding source to support operations.
- Interest Rate Structure Change: After February 9, 2028, the notes will switch to a compounded SOFR plus 1.055%, allowing the company to manage financial costs more flexibly in response to interest rate fluctuations.
- Use of Proceeds: The proceeds from this bond issuance will be used to repay short-term borrowings, aimed at optimizing the capital structure and reducing financial leverage, thereby enhancing the company's financial stability and liquidity.
- Risk Management Strategy: Zions has also entered a receive-fixed fair value hedge to shift fixed-rate exposure to floating during the initial period, which will help mitigate the impact of interest rate volatility on the company's finances.
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Analyst Views on ZION
Wall Street analysts forecast ZION stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for ZION is 64.00 USD with a low forecast of 58.00 USD and a high forecast of 70.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
21 Analyst Rating
4 Buy
16 Hold
1 Sell
Hold
Current: 64.120
Low
58.00
Averages
64.00
High
70.00
Current: 64.120
Low
58.00
Averages
64.00
High
70.00
About ZION
Zions Bancorporation, National Association (the Bank) is a provider of financial services. It provides a range of banking products and related services, primarily in the states of Arizona, California, Colorado, Idaho, Nevada, New Mexico, Oregon, Texas, Utah, Washington, and Wyoming. It conducts its operations primarily through seven managed and geographically defined bank divisions, each with its own local branding and management. Its products and services include commercial and small business banking, capital markets and investment banking, commercial real estate lending, retail banking, and wealth management. Its commercial small business banking products and services include commercial and industrial and owner-occupied lending and leasing, municipal and public finance services, corporate trust services, and others. Its capital markets and investment banking include loan syndications, fixed income securities underwriting, advisory and capital raising, and Power and project financing.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Zions Bancorporation Prices $500M Senior Notes with Fixed-to-Floating Rate
- Bond Issuance Details: Zions Bancorporation priced $500 million in fixed-to-floating rate senior notes maturing on February 9, 2029, with a fixed annual interest rate of 4.483% for the initial period, providing a stable funding source to support operations.
- Interest Rate Structure Change: After February 9, 2028, the notes will switch to a compounded SOFR plus 1.055%, allowing the company to manage financial costs more flexibly in response to interest rate fluctuations.
- Use of Proceeds: The proceeds from this bond issuance will be used to repay short-term borrowings, aimed at optimizing the capital structure and reducing financial leverage, thereby enhancing the company's financial stability and liquidity.
- Risk Management Strategy: Zions has also entered a receive-fixed fair value hedge to shift fixed-rate exposure to floating during the initial period, which will help mitigate the impact of interest rate volatility on the company's finances.
See More
Zions Bancorporation Prices $500 Million Senior Notes Offering
- Offering Size: Zions Bancorporation announced the pricing of $500 million in fixed-to-floating rate senior notes, expected to settle on February 9, 2026, demonstrating the company's robust capital market financing capabilities.
- Interest Rate Structure: The notes feature a fixed interest rate of 4.483%, transitioning to a floating rate based on Compounded SOFR plus a spread of 1.055%, which aids in reducing future interest expenses and enhances financial flexibility.
- Use of Proceeds: Zions intends to utilize the net cash proceeds from this offering to reduce short-term borrowings, further optimizing the company's capital structure and mitigating financial risk.
- Risk Management Strategy: The company executed a receive-fixed fair value hedge during the fixed rate period, effectively converting interest expenses to a floating rate, thereby reducing the impact of interest rate sensitivity on financial performance.
See More
Zions Bancorporation Prices $500 Million Senior Notes Offering
- Offering Details: Zions Bancorporation announced the pricing of $500 million in fixed-to-floating rate senior notes due February 9, 2029, with settlement expected on February 9, 2026, indicating the company's active engagement in capital markets.
- Interest Rate Structure: The annual interest rate for the fixed rate period is set at 4.483%, while the floating rate period will be based on Compounded SOFR plus a spread of 1.055%, which will help the company lower financing costs in the future.
- Use of Proceeds: Zions intends to use the net cash proceeds from this offering to reduce short-term borrowings, a move that will enhance the company's financial flexibility and improve its capital structure.
- Risk Management Measures: The company executed a receive-fixed fair value hedge during the fixed rate period, effectively converting interest expenses to a floating rate, thereby reducing the impact of interest rate sensitivity on financial performance.
See More
Zions Bancorporation Declares Quarterly Dividend and Share Repurchase
- Quarterly Dividend Declaration: Zions Bancorporation has declared a quarterly dividend of $0.45 per share, consistent with previous distributions, reflecting the company's ongoing commitment to stable cash flow and shareholder returns with a forward yield of 3.02%.
- Dividend Payment Schedule: The dividend is payable on February 19, with a record date of February 12 and an ex-dividend date also on February 12, ensuring shareholders receive their returns promptly and bolstering investor confidence.
- Share Repurchase Authorization: The board has authorized a share repurchase of up to $75 million for the first quarter of 2026, indicating the company's confidence in its stock value while providing an additional avenue for capital return to shareholders.
- Potential Capital Distribution Increase: With a 21% rise in tangible book value, Zions Bancorporation signals the possibility of increasing capital distributions in 2026, reflecting a positive outlook on the company's financial health and growth potential in the future.
See More
Zions Bancorporation Authorizes $75 Million Share Repurchase
- Share Repurchase Plan: Zions Bancorporation's board has authorized a share repurchase of up to $75 million in common stock for Q1 2026, with timing and amounts contingent on market conditions and regulatory requirements, thereby enhancing shareholder value and boosting market confidence.
- Quarterly Dividend Declaration: The board declared a quarterly dividend of $0.45 per common share, payable on February 19, 2026, which not only provides shareholders with stable cash flow but also reflects the company's strong financial performance and ongoing profitability.
- Preferred Stock Cash Dividend: The company also announced a quarterly cash dividend on its Series A perpetual preferred shares, payable on March 16, 2026, further enhancing the appeal to preferred shareholders and demonstrating the company's commitment to all its investors.
- Financial Overview: As of December 31, 2025, Zions Bancorporation reported approximately $89 billion in total assets and $3.4 billion in annual net revenue, indicating its leadership position in small and middle-market banking and sustained competitive strength in the market.
See More
Zions Bancorporation Authorizes $75 Million Stock Buyback and Dividend Declaration
- Stock Buyback Authorization: Zions Bancorporation's board has authorized a stock repurchase of up to $75 million for Q1 2026, with timing and amounts contingent on market conditions, thereby enhancing shareholder value and boosting market confidence.
- Quarterly Dividend Declaration: The company declared a quarterly dividend of $0.45 per common share, payable on February 19, 2026, to shareholders of record as of February 12, 2026, aimed at attracting long-term investors through stable cash returns and enhancing shareholder loyalty.
- Preferred Share Dividend Announcement: The board also declared a quarterly cash dividend on Series A perpetual preferred shares, payable on March 16, 2026, reflecting the company's commitment to preferred shareholders and enhancing the attractiveness of its capital structure.
- Financial Strength Overview: As of December 31, 2025, Zions Bancorporation reported approximately $89 billion in total assets and $3.4 billion in annual net revenue, showcasing its leadership in small and middle-market banking and strengthening its competitive position in the financial services industry.
See More
Zions Bancorporation Prices $500M Senior Notes with Fixed-to-Floating Rate
- Bond Issuance Details: Zions Bancorporation priced $500 million in fixed-to-floating rate senior notes maturing on February 9, 2029, with a fixed annual interest rate of 4.483% for the initial period, providing a stable funding source to support operations.
- Interest Rate Structure Change: After February 9, 2028, the notes will switch to a compounded SOFR plus 1.055%, allowing the company to manage financial costs more flexibly in response to interest rate fluctuations.
- Use of Proceeds: The proceeds from this bond issuance will be used to repay short-term borrowings, aimed at optimizing the capital structure and reducing financial leverage, thereby enhancing the company's financial stability and liquidity.
- Risk Management Strategy: Zions has also entered a receive-fixed fair value hedge to shift fixed-rate exposure to floating during the initial period, which will help mitigate the impact of interest rate volatility on the company's finances.
See More
Zions Bancorporation Prices $500 Million Senior Notes Offering
- Offering Size: Zions Bancorporation announced the pricing of $500 million in fixed-to-floating rate senior notes, expected to settle on February 9, 2026, demonstrating the company's robust capital market financing capabilities.
- Interest Rate Structure: The notes feature a fixed interest rate of 4.483%, transitioning to a floating rate based on Compounded SOFR plus a spread of 1.055%, which aids in reducing future interest expenses and enhances financial flexibility.
- Use of Proceeds: Zions intends to utilize the net cash proceeds from this offering to reduce short-term borrowings, further optimizing the company's capital structure and mitigating financial risk.
- Risk Management Strategy: The company executed a receive-fixed fair value hedge during the fixed rate period, effectively converting interest expenses to a floating rate, thereby reducing the impact of interest rate sensitivity on financial performance.
See More
Zions Bancorporation Prices $500 Million Senior Notes Offering
- Offering Details: Zions Bancorporation announced the pricing of $500 million in fixed-to-floating rate senior notes due February 9, 2029, with settlement expected on February 9, 2026, indicating the company's active engagement in capital markets.
- Interest Rate Structure: The annual interest rate for the fixed rate period is set at 4.483%, while the floating rate period will be based on Compounded SOFR plus a spread of 1.055%, which will help the company lower financing costs in the future.
- Use of Proceeds: Zions intends to use the net cash proceeds from this offering to reduce short-term borrowings, a move that will enhance the company's financial flexibility and improve its capital structure.
- Risk Management Measures: The company executed a receive-fixed fair value hedge during the fixed rate period, effectively converting interest expenses to a floating rate, thereby reducing the impact of interest rate sensitivity on financial performance.
See More
Zions Bancorporation Declares Quarterly Dividend and Share Repurchase
- Quarterly Dividend Declaration: Zions Bancorporation has declared a quarterly dividend of $0.45 per share, consistent with previous distributions, reflecting the company's ongoing commitment to stable cash flow and shareholder returns with a forward yield of 3.02%.
- Dividend Payment Schedule: The dividend is payable on February 19, with a record date of February 12 and an ex-dividend date also on February 12, ensuring shareholders receive their returns promptly and bolstering investor confidence.
- Share Repurchase Authorization: The board has authorized a share repurchase of up to $75 million for the first quarter of 2026, indicating the company's confidence in its stock value while providing an additional avenue for capital return to shareholders.
- Potential Capital Distribution Increase: With a 21% rise in tangible book value, Zions Bancorporation signals the possibility of increasing capital distributions in 2026, reflecting a positive outlook on the company's financial health and growth potential in the future.
See More
Zions Bancorporation Authorizes $75 Million Share Repurchase
- Share Repurchase Plan: Zions Bancorporation's board has authorized a share repurchase of up to $75 million in common stock for Q1 2026, with timing and amounts contingent on market conditions and regulatory requirements, thereby enhancing shareholder value and boosting market confidence.
- Quarterly Dividend Declaration: The board declared a quarterly dividend of $0.45 per common share, payable on February 19, 2026, which not only provides shareholders with stable cash flow but also reflects the company's strong financial performance and ongoing profitability.
- Preferred Stock Cash Dividend: The company also announced a quarterly cash dividend on its Series A perpetual preferred shares, payable on March 16, 2026, further enhancing the appeal to preferred shareholders and demonstrating the company's commitment to all its investors.
- Financial Overview: As of December 31, 2025, Zions Bancorporation reported approximately $89 billion in total assets and $3.4 billion in annual net revenue, indicating its leadership position in small and middle-market banking and sustained competitive strength in the market.
See More
Zions Bancorporation Authorizes $75 Million Stock Buyback and Dividend Declaration
- Stock Buyback Authorization: Zions Bancorporation's board has authorized a stock repurchase of up to $75 million for Q1 2026, with timing and amounts contingent on market conditions, thereby enhancing shareholder value and boosting market confidence.
- Quarterly Dividend Declaration: The company declared a quarterly dividend of $0.45 per common share, payable on February 19, 2026, to shareholders of record as of February 12, 2026, aimed at attracting long-term investors through stable cash returns and enhancing shareholder loyalty.
- Preferred Share Dividend Announcement: The board also declared a quarterly cash dividend on Series A perpetual preferred shares, payable on March 16, 2026, reflecting the company's commitment to preferred shareholders and enhancing the attractiveness of its capital structure.
- Financial Strength Overview: As of December 31, 2025, Zions Bancorporation reported approximately $89 billion in total assets and $3.4 billion in annual net revenue, showcasing its leadership in small and middle-market banking and strengthening its competitive position in the financial services industry.
See More
