Abbey National Treasury begins one-week tender for three note series

By Susanna Moon

Chicago, May 5 – Abbey National Treasury Services plc said it began cash tender offers for three series of notes guaranteed by Santander UK plc.

Pricing will be set at 6 a.m. ET on May 13 using a benchmark rate or reference security plus a tender spread as follows:

• €1.5 billion (€1,484,448,000 outstanding) of 1.125% notes due 2022 using the interpolated mid-swap rate plus 70 basis points;

• €1 billion of 1.125% notes due 2025 based on the interpolated mid-swap rate plus 77 bps; and

• £500 million of 3.875% notes due 2029 based on the 6% U.K. Treasury Gilt due 2028 plus 140 bps.

The tender offers will end at 11 a.m. ET on May 12, with settlement following on May 17.

The issuer also will pay accrued interest.

The tender offers are being made as part of the Santander UK Group’s “ongoing liability management, with the intention of supporting the transition to a holding company capital and term funding model in line with regulatory requirements,” according to a company announcement.

Santander UK Group said it plans “to manage its overall liability composition and mix for value.”

Aside from the tender, and as part of Santander’s transition to a holding company capital and term funding model, Santander UK plc and the issuer plan to continue issuing senior liabilities in all major currency markets, with the issue possible in the “near future.”

The tender offers are not conditioned on any capital markets issue, the company noted.

In the tender, the minimum tender denomination is €100,000 for the 2022 notes and the 2025 notes or £100,000 for the 2029 notes.

Notes purchased in the tender offers will be canceled.

Banco Santander, SA (+ 44 20 7756 6909/ +44 20 7756 6646 or tommaso.grospietro@santandergcb.com/ King.Cheung@santandergcb.com) and UBS Ltd. (+44 20 7568 2133 or ol-liabilitymanagement-eu@ubs.com) are the dealer managers. Lucid Issuer Services Ltd. (Paul Kamminga, +44 20 7704 0880 or santander@lucid-is.com) is the tender agent.

Abbey is a London-based financial services company.

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