By Cristal Cody
Tupelo, Miss., Dec. 11 – Santander Holdings USA, Inc. priced $1.25 billion of senior notes (Baa3/BBB+) in two tranches on Monday in a Rule 144A and Regulation S offering, according to a market source and a press release.
The company sold $1 billion of 3.4% five-year notes at a spread of Treasuries plus 130 basis points, on the tight side of talk in the Treasuries plus 135 bps area.
The company priced a $250 million add-on to its 4.4% notes due July 13, 2027 with a Treasuries plus 170 bps spread. The notes were talked to price in the 175 bps spread over Treasuries area.
The company initially priced $800 million of the 4.4% notes on July 10 at a spread of 205 bps over Treasuries. The total outstanding now is $1.05 billion.
Barclays, J.P. Morgan Securities, LLC, Santander Investment Securities Inc. and Wells Fargo Securities, LLC were the bookrunners.
Proceeds from the deal will be used for general corporate purposes.
Boston-based Santander Holdings USA is the U.S. holding company for Madrid-based Banco Santander, SA.
| Issuer: | Santander Holdings USA, Inc.
|
| Amount: | $1.25 billion
|
| Description: | Senior notes
|
| Bookrunners: | Barclays, J.P. Morgan Securities, LLC, Santander Investment Securities Inc. and Wells Fargo Securities, LLC
|
| Trade date: | Dec. 11
|
| Settlement date: | Dec. 18
|
| Ratings: | Moody’s: Baa3
|
| S&P: BBB+
|
| Distribution: | Rule 144A, Regulation S, private
|
|
|
| Five-year notes
|
| Amount: | $1 billion
|
| Maturity: | Jan. 18, 2023
|
| Coupon: | 3.4%
|
| Spread: | Treasuries plus 130 bps
|
| Price guidance: | Treasuries plus 135 bps area
|
|
|
| 10-year notes
|
| Amount: | $250 million reopening
|
| Maturity: | July 13, 2027
|
| Coupon: | 4.4%
|
| Spread: | Treasuries plus 170 bps
|
| Price guidance: | Treasuries plus 175 bps area
|
| Total outstanding: | $1.05 billion, including $800 million of notes priced on July 10 at a spread of 205 bps over Treasuries
|
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