Zions wraps tenders for $250 million subordinated convertibles, notes

By Susanna Moon

Chicago, Dec. 6 - Zions Bancorporation said it planned to settle tenders Friday for $249,937,000 of four subordinated note series in the tender offers that ended at 11:59 p.m. ET on Dec. 5.

The total payout will be $271,493,988 for the notes accepted for purchase, not including accrued interest, according to a company press release.

In the separate cash tender offers for up to $250 million of subordinated notes that began Nov. 6, the company is tendering for up to

• $115 million of its $194,292,000 of outstanding 6% subordinated convertible notes due Sept. 15, 2015;

• $10 million of its $42,303,000 of outstanding 6% subordinated notes due Sept. 15, 2015;

• $115 million of its $186,595,000 of outstanding 5.5% subordinated convertible notes due Nov. 16, 2015; and

• $10 million of its $62,078,000 of outstanding 5.5% subordinated notes due Nov. 16, 2015.

As previously announced, the purchase price per $1,000 principal amount will be $1,087.50 for the 6% notes series and $1,085 for the 5.5% notes series. Holders will also receive accrued interest.

The breakdown for the tendered notes, accepted amounts and proration factors are as follows:

• $120,195,000 of the 6% convertibles with $115 million accepted for purchase for a proration factor of 95.86%;

• $33,473,000 of the 6% notes with $9,937,000 accepted for purchase for a proration factor of 30%;

• $128,573,000 of the 5.5% convertibles with $$115 million accepted for purchase for a proration factor of 89.53%; and

• $43,025,000 of the 5.5% notes with $10 million accepted for purchase for a proration factor of 23.38%.

After settlement on Friday, there will remain outstanding $79,292,000 of 6% convertibles, $32,366,000 of the 6% notes, $71,595,000 of the 5.5% convertibles and $52,078,000 of the 5.5% notes.

Deutsche Bank Securities Inc. (855 287-1922 or call collect 212 250-7527) and Goldman, Sachs & Co. (800 828-3182 or call collect 212 902-5183) were the dealer managers.

Global Bondholder Services Corp. was the depositary and information agent (866 470-4500).

Zions is a Salt Lake City-based bank.

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