By Paul A. Harris
Portland, Ore., Sept. 26 – Banco Santander SA priced €1 billion of 5¼% perpetual additional tier 1 capital securities (expected Ba1) at par on Tuesday, according to market sources.
The securities are non-callable for six years.
After six years the coupon resets at mid-swaps plus 499.9 basis points and then resets every five years subsequently
The deal was launched to the market earlier in the day with initial talk in the low-to-mid 5% area and played to €1.7 billion of orders.
Joint lead manager BofA Merrill Lynch will bill and deliver. Barclays and BNP Paribas were also joint lead managers.
The issuer is a Madrid-based banking group.
| Issuer: | Banco Santander SA
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| Amount: | €1 billion
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| Maturity: | Perpetual
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| Securities: | Non-step up non-cumulative contingent convertible perpetual preferred additional tier 1 securities
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| Managers: | Barclays, BofA Merrill Lynch (bill and deliver), BNP Paribas
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| Coupon: | 5¼%, resets on Sept. 29, 2023 and every subsequent five years at mid-swaps plus 499.9 bps
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| Price: | Par
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| First call: | Sept. 29, 2023 and subsequent distribution dates at par
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| Trade date: | Sept. 26
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| Settlement date: | Sept. 29
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| Rating: | Moody’s: Ba1 (expected)
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| Distribution: | Regulation S
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| Initial price talk: | Mid-to-low 5% area
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