Santander UK gives early tender results for four series of notes

By Cady Vishniac

Detroit, Dec. 1 – Santander UK plc and parent Santander UK Group Holdings plc has given results on its capped tender offers on four series of subordinated notes, according to an announcement with the London Stock Exchange.

As of the early tender deadline of 5 p.m. ET on Nov. 30, valid tenders were received and not withdrawn for:

• $157,501,000 of the $897.9 million outstanding of Santander UK’s 5% fixed rate subordinated notes due Nov. 15, 2023 (ISINs: XS0989359756, US80283LAA17);

• $37,509,000 of the $260,626,000 outstanding of Santander UK’s 7.95% term subordinated securities due Oct, 26, 2029 (ISIN: US002920AC09);

• $274,719,000 of the $1 billion outstanding of Santander UK Group Holdings’ 4.75% dated subordinated notes due Oct. 31, 2025 (ISINs: XS1291333760, US80281LAA35); and

• $270,203,000 of the $500 million outstanding of Santander UK Group Holdings’ 5.625% dated subordinated notes due Aug. 15, 2045 (ISINs: XS1291352711, US80281LAB18).

Caps and pricing

As previously reported, Santander UK offered to purchase:

• $314,265,000 of the outstanding $897.9 million in notes due 2023 at 0.25% U.S. Treasury due Nov. 15, 2023 plus 110 basis points; and

• $130,313,000 of the outstanding $260,626,000 in securities due 2029 at 0.875% U.S. Treasury due Nov. 15, 2030 plus 225 bps.

Santander UK Group Holdings offered to purchase:

• $300 million of the outstanding $1 billion in notes due 2025 at 0.25% U.S. Treasury due Oct. 31, 2025 plus 155 bps; and

• $100 million of the outstanding $500 million in 5.625% notes due 2045 at 1.375% U.S. Treasury due Aug. 15, 2050 plus 170 bps.

Pricing was to be determined at 10 a.m. ET on Dec. 1.

The total considerations for the notes tendered and validly accepted by the early tender deadline will include a $30 early tender premium.

For the first three series listed above, all tendered notes will be accepted for purchase.

In the fourth series, because the amount of 2045 notes tendered is greater than the previously announced cap, Santander will be accepting these notes with a proration factor of 33.186%. Santander does not expect to accept any more tenders for the 2045 notes before the final tender deadline.

Details

The final deadline to participate in the offers is 11:59 p.m. ET on Dec. 14. Caps have not yet been reached on the first three series.

Tendered notes in excess of the stated limit for each series of notes may be subject to proration.

The early settlement date is Dec. 2 and the final settlement date is Dec. 16.

J.P. Morgan Securities LLC (212 834-4045, 866 834-4666, +44 207 134 2468; liability_management_EMEA@jpmorgan.com) and Santander Investment Securities Inc. (212 940-1442, 855 404-3636) will act as dealer managers.

Lucid Issuer Services Ltd. (+44 20 7704 0880, santander@lucid-is.com, http://www.lucid-is.com/santanderus) is the information and tender agent.

Santander UK is a London-based financial services company.

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