Terms

Series

Series C Non-Cumulative Perpetual Preferred Stock

Liquidation Preference

$25.00

Coupon Rate

9.5%

Rate Type

Fixed

Annual Dividend

$2.38

Payment Frequency

Quarterly

Cumulative

No

Perpetual

Yes

Convertible

No

Callable

Yes

First Call Date

September 15, 2013

First Call Price

$25.00

Redemption Notice Period

30 days

Capital Stack Ranking

Junior To: All Creditors And Debt Obligations Of Zions Bancorporation; Pari Passu With: Series A Preferred Stock, Other Parity Preferred Stock; Senior To: Common Stock, Junior Preferred Stock

Regulatory (Basel III) Call

No

Tax Classification

Qualified Dividend

Qualifies for QDI

Yes

Qualifies for DRD

Yes

Depositary Share Fraction

0.025

Shares Offered

6,000,000

Prospectus Summary

Zions Bancorporation is offering up to 6,000,000 depositary shares, each representing a 1/40th interest in a share of Series C Non-Cumulative Perpetual Preferred Stock, with a liquidation preference of $25 per depositary share and a fixed annual coupon of 9.50% ($2.375 per depositary share annually, or approximately $0.594 per quarter). The Series C Preferred Stock is non-cumulative, meaning that if Zions' board does not declare a dividend in any given quarter, that dividend is permanently lost — it does not accrue or carry forward to future periods. The stock is perpetual with no stated maturity and is first callable on September 15, 2013 at $25 per depositary share. The Series C Preferred Stock ranks senior to Zions' common stock and any other junior stock in both dividend priority and liquidation, and on parity with the existing Series A Preferred Stock. It is junior to all of Zions' debt and general creditor obligations. As a holding company issue, investors face structural subordination: operating bank subsidiaries' assets satisfy their own creditors first before any value flows up to the holding company to support preferred payments. There is no explicit regulatory capital loss (Tier 1) call provision in this prospectus; however, any redemption requires prior Federal Reserve approval, which tempers investors' ability to rely on the call date. At the $25 liquidation preference, the effective yield at par is 9.50%. Dividends are paid quarterly on March 15, June 15, September 15, and December 15, with record dates on the first of each respective month. For individual U.S. holders, dividends are expected to qualify for the 15% preferential qualified dividend income (QDI) rate (subject to holding period requirements), and corporate holders should be eligible for the 70% dividends-received deduction (DRD). If Zions fails to declare dividends on the Series C Preferred Stock for the current period, it is blocked from paying dividends on or repurchasing common stock or junior preferred stock, providing some indirect protection — though the non-cumulative structure means missed payments are not recoverable.

Summarized from the SEC prospectus filing.

Distribution History

Ranking vs. Other Preferreds

Dividend Stopper Provisions

Dividend Stopper Description

If Zions has not paid or set aside full dividends on the Series C Preferred Stock for the current dividend period, it cannot pay dividends on, or repurchase, common stock or any other junior stock, and cannot repurchase parity stock except on a pro-rata basis.

Div Score Breakdown

Reinvesty's multi-factor safety analysis for this preferred, composite score: 75 (Strong)