Zions begins tender offers for up to $120 million of preferred stock

By Angela McDaniels

Tacoma, Wash., April 25 – Zions Bancorporation began three modified Dutch auction tender offers to purchase up to $120 million aggregate liquidation preference of preferred stock, according to a company news release.

The company is offering to purchase up to $35 million of its $125,224,000 outstanding series I fixed/floating-rate noncumulative perpetual preferred stock, up to $55 million of its $195,152,000 outstanding series J fixed/floating-rate noncumulative perpetual preferred stock and up to $30 million of its $171,826,775 outstanding series G fixed/floating-rate noncumulative perpetual preferred stock.

Each offer will remain open until 11:59 p.m. ET on May 20.

Holders who tender will select the price within the applicable offer range at which they are willing to sell their securities.

The offer range is $955.00 to $980.00 for the series I preferreds, $1,055.00 to $1,080.00 for the series J preferreds and $26.30 to $26.85 for the depositary shares representing the series G preferreds.

For each series, Zions will select the lowest price within the applicable offer range that will allow it to stay at or below the cap for that series.

The company will also pay accrued dividends up to but excluding the settlement date, which is expected to be May 24.

The company noted that unlike the offer range prices, market prices for series G depositary shares include accrued dividends.

The dealer managers are Goldman Sachs & Co. (800 828-3182 or 212 357-1039) and UBS Securities LLC (888 719-4210 or 203 719-4210). The tender agent and information agent is Global Bondholder Services Corp. (866 470-4500).

Zions is a financial services company based in Salt Lake City.

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