Zions Bancorporation priced $500,000,000 of fixed-to-floating rate senior notes due August 18, 2028. The notes will bear an annual interest rate of 4.704% for the fixed rate period, which runs until August 18, 2027. The offering is expected to settle on August 18, 2025.
The net cash proceeds from this offering are intended to reduce short-term borrowings. Zions also executed a receive-fixed fair value hedge against the notes during the fixed rate period. This hedging strategy effectively converts the interest expense to a floating rate, neutralizing the impact on interest rate sensitivity.
This capital markets activity demonstrates Zions' ongoing efforts to manage its funding profile and interest rate risk. The issuance of senior notes provides long-term funding while the hedging strategy maintains financial flexibility.
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