Sovereign plans $75 million preferred capital securities

By Paul A. Harris

St. Louis, Mo., Dec. 3 - Sovereign Bancorp Inc.'s Sovereign Capital Trust III will bring a public offering of $75 million in aggregate liquidation amount of its preferred capital securities, according to a filing with the Securities and Exchange Commission Monday.

The deal will be comprised of three million 30-year securities with $25 par value paying quarterly distributions. The securities are callable from Jan. 1, 2007 onwards, according to the filing.

The filing identified the underwriters as Janney Montgomery Scott LLC; RBC Capital Markets; Ryan Beck & Co.; Keefe, Bruyette & Woods, Inc.; Sandler O'Neill & Partners, LP; and Friedman Billings Ramsey & Co.

Proceeds from the offering will be used to repay borrowings under Sovereign's revolver.

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