By Rebecca Melvin and Cristal Cody
Concord, N.H., March 18 – Banco Santander, SA sold $2.75 billion of notes on Thursday including a tranche of senior preferred fixed-rate notes due 2025 and a tranche of senior non preferred fixed-to-fixed rate notes due 2028, according to pricing term sheets filed with the Securities and Exchange Commission.
The $1.25 billion 3.496% senior preferred fixed-rate notes due March 24, 2025 (expected ratings: A2/A+/A) priced at par with a spread over U.S. Treasuries of 135 basis points. The notes are non-callable.
Price talk was in the 145 bps area over Treasuries, according to a market source.
The $1.5 billion senior non preferred fixed-to-fixed rate notes due March 24, 2028 (expected ratings: Baa1/A-/A-) priced at par with an initial coupon of 4.175% and spread of Treasuries plus 200 bps. The coupon resets after five years on March 24, 2027 at Treasuries plus 200 bps if they are not redeemed.
Price talk was in the 225 bps area over Treasuries.
BNP Paribas Securities Corp., BofA Securities, Inc., Citigroup Global Markets Inc., Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC and Santander Investment Securities Inc. are the joint bookrunners.
The financial services company is based in Madrid.
| Issuer: | Banco Santander, SA
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| Amount: | $2.75 billion
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| Issue: | Senior preferred fixed-rate notes and senior non preferred fixed-to-fixed notes
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| Bookrunners: | BNP Paribas Securities Corp., BofA Securities, Inc., Citigroup Global Markets Inc., Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC and Santander Investment Securities Inc.
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| Co-leads: | Banco Comercial Portugues SA, BMO Capital Markets Corp., Caixa – Banco de Investimento SA, R. Seelaus & Co. LLC, Samuel A. Ramirez & Co. Inc., Scotia Capital (USA) Inc. and Siebert Williams Shank & Co. LLC
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| Trustee: | Bank of New York Mellon, London Branch
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| Trade date: | March 17
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| Settlement date: | March 24
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| Distribution: | SEC registered
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| 2025 notes
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| Amount: | $1.25 billion
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| Issue: | Senior preferred fixed-rate notes (series 140)
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| Maturity: | March 24, 2025
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| Coupon: | 3.496%
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| Price: | Par
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| Yield: | 3.496%
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| Spread: | Treasuries plus 135 bps
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| Call features: | Non-callable
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| Ratings: | Moody’s: A2
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| S&P: A+
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| Fitch: A
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| Price talk: | 145 bps area over Treasuries
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| Cusip: | 05964HAP01
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|
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| 2028 notes
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| Amount: | $1.5 billion
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| Issue: | Senior non preferred fixed-to-fixed rate notes (series 141)
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| Maturity: | March 24, 2028
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| Coupon: | Initial rate of 4.175%, until March 24. 2027 then resets to fixed rate equal to Treasuries plus 200 bps
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| Price: | Par
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| Yield: | 4.175%
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| Spread: | Treasuries plus 200 bps
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| Call features: | Non-callable until March 24, 2027
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| Ratings: | Moody’s: Baa1
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| S&P: A-
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| Fitch: A-
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| Price talk: | 225 bps area over Treasuries
|
| Cusip: | 05964HAQ8
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