Zions agrees to exchange $40 million 5.5% subordinated notes due 2015

By Angela McDaniels

Tacoma, Wash., Jan. 5 - Zions Bancorp. entered into an exchange agreement on Dec. 30 under which it will exchange $40 million principal amount of 5.5% subordinated notes due 2015 for $40 million principal amount of 2009 5.5% subordinated notes due 2015 held by Jackson National Life Insurance Co., according to an 8-K filing with the Securities and Exchange Commission.

Each $1,000 principal amount of 5.5% notes is convertible into 40 depositary shares each representing a one-fortieth ownership interest in, at the option of the holder, either a share of the company's series A floating-rate non-cumulative perpetual preferred stock or a share of the company's 9.5% series C non-cumulative perpetual preferred stock.

The 2009 5.5% notes do not contain this conversion feature. The 5.5% notes are otherwise identical to the 2009 5.5% notes.

Settlement is expected to occur in January.

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

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