Zions Bancorporation Prices $500 Million in Senior Notes

The notes carry an annual interest rate of 5.239% during the fixed-rate period, which concludes on October 1, 2028. Following this date, the rate will transition to a floating structure based on the Compounded SOFR plus a 1.08% spread. Zions retains the option to redeem the notes in full on the transition date at their principal amount, plus any accrued interest. Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, and RBC Capital Markets, LLC acted as bookrunners for the transaction, which is expected to settle on July 31, 2026.

To manage the interest rate exposure associated with the issuance, Zions has executed a receive-fixed fair value hedge. This strategy effectively converts the debt's interest expense into a floating rate, insulating the bank from fluctuations during the initial fixed-rate term. With approximately $89 billion in assets as of late 2025, the company continues to leverage these capital markets activities to optimize its balance sheet and liquidity position.