Zions Bancorp plans to sell at least $125 million of depositary shares in an initial public offering, part of a series of capital raisings the bank had planned for the current quarter.
The Salt Lake City company plans to offer at least 5 million shares, a one-fortieth interest in Series E fixed-rate resettable preferred shares, for $25 each. The depositary shares initially will pay an 11% dividend, and Zions is seeking approval for the depositary shares to be listed on the New York Stock Exchange.
The banking company has the option to redeem the depositary shares at two-year intervals starting June 2012. The dividend would reset on the redemption dates to the yield at the time of two-year Treasuries, plus 10.22%. Zions, whose market capitalization recently was $3.65 billion, plans to use the proceeds for general corporate purposes.