UPDATE 1-Zions to offer $150 mln of warrants

* Each warrant to represent right to purchase one share
* Ups size of equity distribution deal with Deutsche, Goldman

* Capital actions to increase tier 1 capital by $600 mln

* Actions to add to tangible common equity/shr immediately

May 19 (BestGrowthStock) – Zions Bancorp (ZION.O: ) said it will
offer $150 million of warrants to buy additional shares of its
common stock, as a part of its plans to boost its capital

The western U.S. banking chain also increased the sale of
its common stock under an arrangement with Deutsche Bank
Securities and Goldman Sachs by 70 percent to $425 million.

The company had said in March that it may sell its common
stock through or to the banks for up to $250 million.

These capital actions, which it expects to complete in the
second-quarter, may increase its Tier 1 capital by about $600
million, the company said.

These actions are expected to add to the company’s tangible
common equity per share immediately and will increase its Tier
1 capital to risk-weighted assets by about 120 basis points, it

Zions said each warrant will represent the right to
purchase one share of the company’s common stock.

The company said it intends to use the net proceeds for
general corporate purposes and may also invest in
interest-bearing investment grade securities.

Goldman Sachs and Deutsche Bank Securities are serving as
joint bookrunning managers on the warrant offering, the company

Shares of the lender closed at $26.08 Tuesday on Nasdaq.

Stock Report

(Reporting by Archana Shankar in Bangalore; Editing by Anil

UPDATE 1-Zions to offer $150 mln of warrants