By Cristal Cody
Chicago, June 24 – Banco Santander, SA sold a $1.5 billion offering of senior preferred callable fixed-to-fixed rate notes due June 30, 2024 (A2/A/A) at par, according to an FWP filing with the Securities and Exchange Commission.
The notes have a starting coupon of 0.701%.
The rate resets on June 30, 2023 to the one-year U.S. Treasury rate plus 45 basis points.
The notes were priced with a spread of Treasuries plus 45 basis points. Initial price talk, according to a source, had been in the Treasuries plus 65 bps area.
The notes are being sold to the public at par. The discount to underwriters was 99.75.
The notes will be redeemable at par on the reset date.
Application will be made to the New York Stock Exchange to list the notes.
Joint bookrunners for the issue are BofA Securities, Inc., Goldman Sachs Bank Europe SE, HSBC Securities (USA) Inc., RBC Capital Markets, LLC, Santander Investment Securities Inc. and Wells Fargo Securities, LLC.
Proceeds will be used for general corporate purposes.
Madrid-based Santander provides bank services.
| Issuer: | Banco Santander, SA
|
| Issue: | Senior preferred callable fixed-to-fixed rate notes
|
| Amount: | $1.5 billion
|
| Maturity: | June 30, 2024
|
| Bookrunners: | BofA Securities, Inc., Goldman Sachs Bank Europe SE, HSBC Securities (USA) Inc., RBC Capital Markets, LLC, Santander Investment Securities Inc. and Wells Fargo Securities, LLC
|
| Co-managers: | Banco de Sabadell, SA, Caixa – Banco de Investimento, SA and Standard Chartered Bank AG
|
| Coupon: | 0.701% initial rate; resets June 30, 2023 to one-year U.S. Treasury plus 45 bps
|
| Price: | Par
|
| Yield: | 0.701%
|
| Spread: | Treasuries plus 45 bps
|
| Call features: | Par on June 30, 2023
|
| Trade date: | June 23
|
| Settlement date: | June 30
|
| Ratings: | Moody’s: A2
|
| S&P: A
|
| Fitch: A
|
| Distribution: | SEC registered
|
| Price talk: | Treasuries plus 65 bps area
|
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