Zions Bancorp announces stock exchange offer

AP News
Posted: Nov 23, 2009 1:35 PM

Bank holding company Zions Bancorp. on Monday announced an offer to exchange about $140 million of its preferred stock for common stock.

The offer, which would increase Zions' tangible common equity, applies to approximately 5.6 million depository shares of its series A preferred stock.

The depository shares of preferred stock each represent a 1/40th ownership interest in a share of Series A floating-rate non-cumulative perpetual preferred stock, with a liquidation preference of $25 per depositary share.

Zions said it would exchange each depositary share for a number of common shares equal to $13 divided by the relevant price. If the relevant price is less than $10.40, then 1.25 shares of common stock will be issued for each depositary share.

Zions will also pay cash for any accrued and unpaid dividends up to the settlement date on any depositary shares accepted. The offer expires Dec. 21. Zions can extend that date, or end the offer earlier.

Shares of Zions rose $1.75, or 14 percent, to $14.32 in afternoon trading.