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Author: aj485 Big gold star, 5000 posts Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 35272  
Subject: Re: Opportunity, or Value Trap? Date: 3/23/2012 6:41 PM
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It's not often that I'm willing to discuss specific issues before a trade has been closed. But the features of this one are unusual. Zions Direct is auctioning:

5-Year Senior Medium-Term Notes
Coupon: 4.50%
Maturity: March 27, 2017

Offer Size: $300,000,000
Sold in Units of $1,000

Auction opens at 8:00 AM ET, Thursday, March 22, 2012.
Auction closes at 3:00 PM ET, Thursday, March 22, 2012,
and is expected to settle on March 27, 2012 (T+3)


Here's an interesting footnote on the auction that Zion's held. Apparently, they proposed using the same auction process for the Facebook IPO. They were turned down, losing to Morgan Stanley (among others) but the article brings up some interesting points.

http://blogs.wsj.com/deals/2012/03/23/facebook-rejected-zion...

Zions lacks the balance sheet and client relationships of those investment banking powerhouses but it does have one competitive advantage – a field-tested online auction platform that the bank thought might appeal to Facebook.

Facebook’s CEO Mark Zuckerberg eventually decided against an auction and picked Morgan Stanley (and now 30 other underwrites too) to syndicate its offering. But Zions still believes in the mechanism, so much so that the bank sold a $300 million senior unsecured bond Thursday using its online auction platform.


AJ
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