QUANTUMONLINE.COM SECURITY DESCRIPTION: Zions Bancorporation, Fixed-to-Floating Rate Subordinated Notes due 9/15/2028, issued in $25 denominations, redeemable at the issuer's option on or after 9/15/2023 at $25 per note plus accrued and unpaid interest, and maturing 9/15/2028. Fixed interest distributions of 6.95% per annum ($1.7375 per annum or $0.434375 per quarter) will be paid quarterly on 3/15, 6/15, 9/15 & 12/15 through 9/15/2023 to holders of record on the record date that will be 3/1, 6/1, 9/1 & 12/1 respectively (NOTE: the ex-dividend date is one business day prior to the record date). After 9/15/2023 floating rate distrbutions will be paid at a rate of the three month LIBOR three-month SOFR plus 3.89%.
Distributions paid by these debt securities are interest and as such are NOT eligible for the preferential 15% to 20% tax rate on dividends and are also NOT eligible for the dividend received deduction for corporate holders.
Units are expected to trade flat, which means accrued interest will be reflected in the trading price and the purchasers will not pay and the sellers will not receive any accrued and unpaid interest.
This security was rated as Ba2 by Moody’s and BB+ by S&P at the date of its IPO. The Notes are unsecured subordinated obligations of the company and will rank junior to all existing and future unsecured and unsubordinated indebtedness of the company. See the IPO prospectus for further information on the debt securities by clicking on the ‘Link to IPO Prospectus’ provided below.
