Zions sets exchange ratios in offer for three series of convertibles

By Susanna Moon

Chicago, March 26 - Zions Bancorp. announced the exchange ratios for its offer to exchange common stock for any and all of its outstanding nonconvertible subordinated notes.

Covered by the exchange are the company's 5.65% subordinated notes due 2014, 6% subordinated notes due 2015 and 5.5% subordinated notes due 2015.

Zions will issue 39.7014 common shares for each $1,000 principal amount of 5.65% notes, 39.1469 common shares per $1,000 principal amount of 6% notes and 38.1488 common shares per $1,000 principal amount of 5.5% notes.

Each note will be exchanged for a number of common shares equal to the note price divided by the stock price of $22.5433, which was the average of the volume-weighted average price of Zions' common stock (Nasdaq: ZION) during the five consecutive trading days ended March 24.

As previously noted, the note price was $895.00 for the 5.65% notes, $882.50 for the 6% notes and $860.00 for the 5.5% notes.

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

The exchange offer will expire at 11:59 p.m. ET on March 26.

Zions previously said the offer will increase its tangible common equity by an amount roughly equal to the principal amount of the notes exchanged. It will also increase the company's tangible common equity ratio while reducing the interest expense associated with the notes.

Deutsche Bank Securities Inc. and Goldman Sachs & Co. are acting as Zions' financial advisers in connection with the exchange offer.

The information agent is D.F. King & Co., Inc. (800 269-6427 or 212 269-5550).

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

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