Zions Bancorporation N.A. Issues $500M Fixed-to-Floating Notes to Cut Short-Term Borrowing

Zions Tightens Liquidity with $500 Million Note Issue

Funding and hedge convert fixed-rate exposure

Zions Bancorporation N.A. is issuing $500 million of fixed-to-floating rate senior notes due Feb. 9, 2029, and is using the proceeds to cut short-term borrowings while neutralizing near-term interest rate risk. The notes carry a fixed annual coupon of 4.483% from settlement through Feb. 9, 2028, after which they convert to a floating rate equal to compounded SOFR plus a 1.055% spread. Zions is executing the financing as a public transaction exempt from registration under Section 3(a)(2) of the Securities Act.

The bank says it has executed a receive-fixed fair value hedge that effectively converts the company’s interest expense to floating during the fixed-rate period, reducing sensitivity to interest-rate moves as the notes transition to SOFR pricing. Zions frames the combination of the hedge and the floating-step provision as a way to stabilize funding costs during a period of elevated short-term borrowing. The hedging action is intended to align interest expense with the company’s broader asset-liability management strategy.

Zions also retains customary redemption provisions and may redeem the notes in whole (but not in part) on Feb. 9, 2028, at 100% of principal plus accrued unpaid interest. The company expects settlement on Feb. 9, 2026, subject to customary closing conditions, and identifies the issuance as part of ongoing liability management to optimize its funding mix and liquidity position.

Deal details and timing

The securities carry CUSIP 98971DAE0 and are placed through bookrunners BofA Securities, J.P. Morgan Securities and Morgan Stanley, which serve as joint bookrunners on the offering. Zions signals that the net cash proceeds are earmarked specifically to reduce short-term borrowings, an immediate balance-sheet objective rather than a capital-raising for expansion.

Company profile and investor note

Zions Bancorporation N.A. is a regional bank with about $89 billion in total assets as of Dec. 31, 2025, and $3.4 billion in net revenue in 2025, operating local brands across 11 western states. The press release includes forward-looking statements and directs investors to offering documents, risk factors and management commentary, advising consultation with counsel or advisors on investment and tax implications.