By Cristal Cody
Chicago, Nov. 16 – Banco Santander, SA sold $1 billion of 3.225% tier 2 subordinated callable fixed-to-fixed 11-year notes (Baa2/BBB+/BBB) at par on Monday, according to a market source and an FWP filing with the Securities and Exchange Commission.
The coupon will reset once on Nov. 22, 2031 to a fixed rate equal to the one-year Treasuries rate plus a 160 basis points spread.
The notes priced with a spread of 160 basis points over the benchmark Treasury. Talk on the notes was in the 175 bps to 180 bps area.
The notes will be callable in whole at par on any date during the three-month period up to the reset date. The notes will also be callable upon the occurrence of tax events or regulatory events. However, the notes will not be putable.
BofA Securities, Inc., Credit Agricole Securities (USA) Inc., Credit Suisse Securities (USA) LLC, Goldman Sachs Bank Europe SE, J.P. Morgan Securities LLC, RBC Capital Markets, LLC and Santander Investment Securities Inc. are the joint bookrunners.
Proceeds will be used for general corporate purposes.
The financial services company is based in Madrid.
| Issuer: | Banco Santander, SA
|
| Issue: | Tier 2 subordinated callable fixed-to-fixed notes
|
| Amount: | $1 billion
|
| Maturity: | Nov. 22, 2032
|
| Bookrunners: | BofA Securities, Inc., Credit Agricole Securities (USA) Inc., Credit Suisse Securities (USA) LLC, Goldman Sachs Bank Europe SE, J.P. Morgan Securities LLC, RBC Capital Markets, LLC and Santander Investment Securities Inc.
|
| Co-leads: | Bankinter SA, BMO Capital Markets Corp. and Scotia Capital (USA) Inc.
|
| Trustee: | Bank of New York Mellon
|
| Coupon: | 3.225% initial rate; resets Nov. 22, 2031 to one-year Treasuries plus 160 bps
|
| Price: | Par
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| Yield: | 3.225%
|
| Spread: | Treasuries plus 160 bps
|
| Call features: | At par in the three months leading up to the reset date
|
| Puts: | Non-putable
|
| Trade date: | Nov. 15
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| Settlement date: | Nov. 22
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| Ratings: | Moody’s: Baa2
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| S&P: BBB+
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| Fitch: BBB
|
| Distribution: | SEC registered
|
| Price talk: | Treasuries plus 175 bps to 180 bps area
|
| Cusip: | 05971KAL3
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