Zions Bancorporation, N.A. announced that it priced $500,000,000 of fixed-to-floating rate senior notes (CUSIP: 98971DAE0) due February 9, 2029, 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 February 9, 2026, subject to customary closing conditions. The annual interest rate for the fixed rate period, which runs from, and including the settlement date to, but excluding, February 9, 2028, is equal to 4.483%.
The annual interest rate for the floating rate period, which begins on February 9, 2028, will be equal to Compounded SOFR plus a spread of 1.055%. In addition to other customary redemption provisions at Zions' option, Zions may redeem the notes in whole, but not in part, on February 9, 2028, at 100% of the principal amount plus accrued but unpaid interest. BofA Securities Inc., J.P. Morgan Securities LLC, and Morgan Stanley & Co.
LLC served as bookrunners for the offering. Zions intends to use the net cash proceeds from this offering to reduce short-term borrowings. Zions also executed a receive-fixed fair value hedge against the notes during the fixed rate period, effectively converting the interest expense to a floating rate and neutralizing the impact on interest rate sensitivity.
