By Andrea Heisinger
New York, Sept. 18 - Zions Bancorporation priced an upsized $450 million of 7.75% five-year senior notes Friday to yield 11.25%, an informed source said.
The size was initially $300 million, a source said Thursday when the sale was announced. It went overnight to allow investors a better look at the name, because it is an infrequent issuer.
The notes (/BBB-/BBB) priced at 86.888 and a spread of Treasuries plus 880.1 basis points. They are non-callable.
Bookrunners were Deutsche Bank Securities Inc. and Goldman Sachs & Co. Bank of America Merrill Lynch, J.P. Morgan Securities Inc. and Zions Direct were co-managers.
Proceeds will be used for repayment of $295.63 million in floating-rate senior notes due Dec. 10, 2009 and for general corporate purposes.
The financial holding company is based in Salt Lake City.
| Issuer: | Zions Bancorporation
|
| Issue: | Senior notes
|
| Amount: | $450 million, increased from $300 million
|
| Maturity: | Sept. 23, 2014
|
| Bookrunners: | Deutsche Bank Securities Inc., Goldman Sachs & Co.
|
| Co-managers: | Bank of America Merrill Lynch, J.P. Morgan Securities Inc., Zions Direct
|
| Coupon: | 7.75%
|
| Price: | 86.888
|
| Yield: | 11.25%
|
| Spread: | Treasuries plus 880.1 bps
|
| Call: | Non-callable
|
| Trade date: | Sept. 18
|
| Settlement date: | Sept. 23
|
| Ratings: | Standard & Poor's: BBB-
|
| Fitch: BBB
|
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