Published on 3/7/2023 in the Prospect News Investment Grade Daily.
New Issue: Santander sells $1 billion 6.499% fixed-to-floating notes due 2029
Chicago, March 7 – Santander Holdings USA, Inc. priced a $1 billion offering of 6.499% fixed-to-floating rate senior notes due 2029 (Baa3/BBB+/BBB+) on Monday, according to an FWP filing with the Securities and Exchange Commission.
The initial rate resets on March 9, 2028 to SOFR plus 235.6 basis points, calculated quarterly.
The notes priced at par, or at Treasuries plus 223 bps.
Callable with a Treasuries plus 35 bps make-whole premium from Sept. 5, 2023 to March 9, 2028, the notes will be callable at par on the reset date and then in the final month before maturity.
Santander US Capital Markets LLC, Barclays, Deutsche Bank Securities Inc. and RBC Capital Markets, LLC are the joint bookrunning managers.
Proceeds will be used for general corporate purposes.
Boston-based Santander Holdings USA is a bank holding company.
| Issuer: | Santander Holdings USA, Inc.
|
| Amount: | $1 billion
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| Issue: | Fixed-to-floating rate senior notes
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| Maturity: | March 9, 2029
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| Bookrunners: | Santander US Capital Markets LLC, Barclays, Deutsche Bank Securities Inc. and RBC Capital Markets, LLC
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| Co-managers: | Morgan Stanley & Co. LLC, Wells Fargo Securities, LLC and Siebert Williams Shank & Co., LLC
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| Trustee: | Deutsche Bank Trust Co. Americas
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| Counsel to issuer: | Wachtell, Lipton, Rosen & Katz and McGuireWoods LLP
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| Counsel to underwriters: | Latham & Watkins LLP
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| Coupon: | 6.499% initial rate; resets to SOFR plus 235.6 bps on March 9, 2028, calculated quarterly
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| Price: | Par
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| Yield: | 6.499%
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| Spread: | Treasuries plus 223 bps
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| Call features: | Make-whole call at Treasuries plus 35 bps from Sept. 5, 2023 to March 9, 2028; par on March 9, 2028; par from Feb. 9, 2029 onward
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| Trade date: | March 6
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| Settlement date: | March 9
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| Ratings: | Moody’s: Baa3
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| S&P: BBB+
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| Fitch: BBB+
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| Distribution: | SEC registered
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| Cusip: | 80282KBF2
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