By Cristal Cody
Chicago, Aug. 1 – Banco Santander, SA priced $2 billion of 6.921% tier 2 subordinated fixed-rate notes due 2033 (Baa2/BBB+/BBB), according to an FWP filed with the Securities and Exchange Commission.
There was no discount and the notes priced at 295 basis points over Treasuries.
Price talk was in the Treasuries plus 325 bps area, according to a market source.
The contingent convertible capital securities are not redeemable before the maturity date, except for capital events or tax events.
Santander US Capital Markets LLC (global coordinator), BofA Securities, Inc., Citigroup Global Markets Inc., Goldman Sachs Bank Europe SE, HSBC Securities (USA) Inc., J.P. Morgan Securities LLC, Jefferies LLC, Morgan Stanley & Co. LLC, RBC Capital Markets, LLC, TD Securities (USA) LLC and Wells Fargo Securities, LLC are the joint bookrunners.
Proceeds will be used for general corporate purposes.
Santander intends to list the notes on the New York Stock Exchange.
The bank also sold senior preferred fixed-rate notes in a concurrent offering.
Based in Madrid, the issuer is the parent bank of a group that operates principally in Spain, the United Kingdom, other European countries, Brazil and other Latin American countries and the United States.
| Issuer: | Banco Santander, SA
|
| Amount: | $2 billion
|
| Issue: | Tier 2 subordinated fixed-rate notes
|
| Maturity: | Aug. 8, 2033
|
| Bookrunners: | Santander US Capital Markets LLC, BofA Securities, Inc., Citigroup Global Markets Inc., Goldman Sachs Bank Europe SE, HSBC Securities (USA) Inc., J.P. Morgan Securities LLC, Jefferies LLC, Morgan Stanley & Co. LLC, RBC Capital Markets, LLC, TD Securities (USA) LLC and Wells Fargo Securities, LLC
|
| Co-managers: | Bankinter, SA, BMO Capital Markets Corp., Independence Point Securities LLC, Penserra Securities LLC and Scotia Capital (USA) Inc.
|
| Trustee: | Bank of New York Mellon, London Branch
|
| Counsel to issuer: | Davis Polk & Wardwell LLP and Uria Menendez Abogados, SLP
|
| Counsel to underwriters: | Linklaters LLP
|
| Coupon: | 6.921%
|
| Price: | Par
|
| Yield: | 6.921%
|
| Spread: | Treasuries plus 295 bps
|
| Call features: | Non-callable
|
| Trade date: | July 31
|
| Settlement date: | Aug. 8
|
| Ratings: | Moody’s: Baa2
|
| S&P: BBB+
|
| Fitch: BBB
|
| Distribution: | SEC registered
|
| Price talk: | Treasuries plus 325 bps area
|
| Cusip: | 05964HAV7
|
|
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
