Zions Bank prices tender for 7.75% notes; ups cap to $257.62 million

By Susanna Moon

Chicago, June 14 - Zions Bancorp. said investors had tendered $257,615,000 of its 7.75% senior notes due Sept. 23, 2014 by the early offer deadline at 5 p.m. ET on June 13.

The company then raised the tender offer cap to the amount received by the early tender date from the $150 million set when the offer began May 31 and accepted all of the tendered notes for purchase, according to a press release.

The total purchase price was set by modified Dutch auction at $1,089 for each $1,000 of notes, which was the high end of the bid price range of $1,080 to $1,089 per $1,000 of notes.

The clearing price is $1,089.

Holders who tendered their notes by the early offer date will receive the $30.00 early tender premium, as previously noted.

The company also will pay accrued interest to but excluding the settlement date of June 18.

Only notes tendered by the early tender time at bid prices within the acceptable range were used to calculate the clearing price. No tenders outside of the stated range would be accepted, the company previously said.

Because the tender cap was reached, the company will accept no more tenders unless it chooses to lift the tender cap again, the release noted.

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) are the dealer managers for the offer. Global Bondholders Services Corp. (866 387-1500) is the depositary and information agent.

Zions is a Salt Lake City-based financial institution.

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