Sovereign Capital $75 million preferred capital securities on the road

By Paul A. Harris

St. Louis, Mo., Dec. 4 - Sovereign Bancorp's offering of $75 million of trust preferred capital securities could price as early as late this week, a syndicate source told Prospect News, Tuesday. The deal is presently on the road.

The deal, to be sold by Sovereign Capital Trust III will be listed on the New York Stock Exchange and will be comprised of three million 30-year securities with a $25 liquidation amount and paying quarterly distributions, according to the source.

Underwriters are Janney Montgomery Scott LLC; RBC Capital Markets; Ryan Beck & Co.; Keefe, Bruyette & Woods, Inc.; Sandler O'Neill & Partners, LP; and Friedman Billings Ramsey & Co.

The securities are callable Jan. 1, 2007 onwards, according to a recent filing with the Securities and Exchange Commission.

"The terms aren't really established yet," the source said, adding that there is "no credit rating at this point."

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

Sovereign Capital is headquartered in Wyomissing, Pa.

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