SALT LAKE CITY, Aug. 8, 2013 /PRNewswire/ -- Zions Bancorporation ("Zions" or the "Company") (Nasdaq: ZION) announced today that it successfully priced its offering of 195,152 shares ( $195,152,000 aggregate liquidation preference) of Series J fixed/floating rate non-cumulative perpetual preferred stock in an underwritten public transaction. The dividend rate was determined through an online modified Dutch auction process administered by Zions Direct, Inc. ("Zions Direct"). The public offering price of each share is equal to the liquidation preference per share, or $1,000.00.
The dividend rate for the fixed rate period, which runs from the issuance date to, but not including, September 15, 2023, is 7.20%. The dividend rate for the floating rate period, which begins on September 15, 2023, will be equal to three-month LIBOR plus a spread of 4.44%. Net of commissions and fees, the proceeds to the Company are expected to be approximately $191.5 million.
Deutsche Bank Securities Inc., Goldman, Sachs & Co., Macquarie Capital ( USA) Inc. and Zions Direct served as joint bookrunning managers for the offering.
Zions intends to use the net cash proceeds from this offering to pay in part the redemption price in respect of the redemption by Zions of $590,000,000 of its Series C 9.50% non-cumulative perpetual preferred stock announced on July 24, 2013.Zions is one of the nation's premier financial services companies, consisting of a collection of great banks in select Western U.S. markets. Zions operates its banking businesses under local management teams and community identities through approximately 475 offices in 10 Western and Southwestern states: Arizona, California, Colorado, Idaho, Nevada, New Mexico, Oregon, Texas, Utah and Washington. The shares will be issued pursuant to Zions' Registration Statement on Form S-3 (No. 333-173299) previously filed by Zions with the Securities and Exchange Commission (the "Commission"). The Registration Statement is effective. Before you invest, you should read the prospectus dated April 4, 2011 contained in that registration statement, the preliminary prospectus supplement dated August 5, 2013, and other documents Zions Bancorporation has filed with the SEC for more complete information about Zions Bancorporation and this offering. Copies of the applicable prospectus supplement and accompanying prospectus relating to the offering may be obtained when available by contacting Deutsche Bank Securities Inc., Attention: Prospectus Department, Harborside Financial Center, 100 Plaza One, Floor 2, Jersey City, New Jersey 07311-3988, telephone toll-free: 1-800-503-4611 or by email: firstname.lastname@example.org, Goldman, Sachs & Co., Prospectus Department, 200 West Street, New York, New York 10282, telephone toll-free: 1-866-471-2526, facsimile: 212-902-9316 or by email: email@example.com, Macquarie Capital ( USA) Inc., 125 West 55th Street, New York, NY 10019, Attention: Prospectus Department, by email: firstname.lastname@example.org or by telephone: 1-888‐268‐3937, or by visiting Zions Direct's auction website at www.zionsdirect.com, or by visiting EDGAR on the Commission's website at www.sec.gov. This press release is for informational purposes only and does not constitute an offer to sell or the solicitation of an offer to buy preferred stock or shares of Zions or any other securities and shall not constitute an offer, solicitation or sale of any securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
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