By Devika Patel
Knoxville, Tenn., Jan. 3 – Santander UK plc priced $500 million of 2.5% fixed-rate senior notes (Aa3/A/A) due Jan. 5, 2021 on Tuesday at Treasuries plus 53 basis points and parent Santander UK Group Holdings plc priced $1 billion of six-year 3.373% fixed-to-floating notes (Baa1/BBB/A) at par with a spread of Treasuries plus 113 bps, according to FWP filings with the Securities and Exchange Commission.
Pricing on the fixed-rate notes was at 99.888 to yield 2.539%. The notes have a make-whole call at Treasuries plus 25 bps until Aug. 1, 2046, then a par call.
The notes are non-callable.
The fixed-to-floating notes have an initial 3.373% coupon, stepping up to Libor plus 108 bps from Jan. 5, 2023 onwards.
Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC and Santander Investment Securities Inc. are the bookrunners for both deals.
Plans for a floating-rate tranche to be sold by Santander UK plc were dropped.
Proceeds will be used for general corporate purposes.
The financial services company is based in London.
| Issuer: | Santander UK plc, Santander UK Group Holdings plc
|
| Amount: | $1.5 billion
|
| Description: | Senior notes, fixed-to-floating notes
|
| Bookrunners: | Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC and Santander Investment Securities Inc.
|
| Trade date: | Jan. 2
|
| Settlement date: | Jan. 5
|
| Distribution: | SEC registered
|
|
|
| Subsidiary three-year fixed-rate notes
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| Issuer: | Santander UK plc
|
| Amount: | $500 million
|
| Maturity: | Jan. 5, 2021
|
| Coupon: | 2.5%
|
| Price: | 99.888
|
| Yield: | 2.539%
|
| Spread: | Treasuries plus 53 bps
|
| Call: | Non-callable
|
| Ratings: | Moody’s: Aa3
|
| Standard & Poor’s: A
|
| Fitch: A
|
|
|
| Parent six-year fixed-to-floaters
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| Issuer: | Santander UK Group Holdings plc
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| Amount: | $1 billion
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| Maturity: | Jan. 5, 2024
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| Coupon: | 3.373% initially; Libor plus 108 bps from Jan. 5, 2023 onwards
|
| Price: | Par
|
| Spread: | Treasuries plus 113 bps
|
| Call: | On Jan. 5, 2023 at par
|
| Ratings: | Moody’s: Baa1
|
| Standard & Poor’s: BBB
|
| Fitch: A
|
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