Zions Bancorp begins exchange offer for floating-rate preferreds

By Angela McDaniels

Tacoma, Wash., Nov. 23 - Zions Bancorp. has begun an exchange offer for the approximately $140 million of outstanding depositary shares that represent its series A floating-rate non-cumulative perpetual preferred stock, according to a company news release.

The depositary shares each represent a 1/40th ownership interest in one preferred, and each preferred has a liquidation preference of $1,000.

Each depositary share will be exchanged for a number of shares of common stock equal to $13.00 divided by the relevant price.

The relevant price will be the arithmetic average of the volume-weighted average price of Zions' common stock during the five consecutive trading days ending on the second trading day immediately preceding the expiration date.

If the relevant price is less than $10.40, then 1.25 shares will be issued for each depositary share accepted in the offer.

Zions will also pay cash for accrued dividends up to but excluding the settlement date.

The exchange offer will expire at 11:59 p.m. ET on Dec. 21.

The company said the exchange offer will increase its tangible common equity by an amount approximately equal to the liquidation preference of the depositary shares exchanged.

Deutsche Bank Securities Inc. and Goldman Sachs & Co. are acting as Zions' financial advisers in connection with the offer, and the information agent is D.F. King & Co., Inc. (800 901-0068 or 212 269-5550).

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

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