U.S. Treasury: Zions Bancorp Securities Sale to Reap $7.7 Million

WASHINGTON--The U.S. Treasury Department Friday said it planned to reap nearly $7.7 million in the sale of Zions Bancorp (ZION) securities as it continues to wind down programs dating to the 2008 financial crisis.

Treasury said it priced the 5,789,909 warrants, securities that give the right to purchase common stock, at $1.35 per warrant. It expects to close the sale Dec. 5. Deutsche Bank Securities is managing the book for the sale.

Treasury said the proceeds provide an additional return to the U.S. taxpayer from its investment in the company beyond the dividend payments received related to the preferred stock.

The government has turned a profit on the investments it made in banks under the Troubled Asset Relief Program. But the overall program, which also includes the auto bailout and housing initiatives, is likely to cost taxpayers. The Congressional Budget Office has estimated the final price tag will be $24 billion.

Write to Ian Talley at [e-mail]