By Devika Patel
Knoxville, Tenn., Oct. 18 – Banco Santander, SA offered further details about a $2.5 billion sale of senior non-preferred debt securities (expected Baa1/BBB+/A-) that priced in three tranches on Tuesday, according to an FWP filed with the Securities and Exchange Commission.
The company priced $500 million of floating-rate notes due Feb. 23, 2023 at Libor plus 109 basis points. These notes were sold at par.
Banco Santander sold $1 billion of 3.125% notes due Feb. 23, 2023 at a spread of 120 bps over Treasuries. These notes priced at 99.808 to yield 3.165%.
The final $1 billion tranche of 3.8% notes due Feb. 23, 2028 priced with a Treasuries plus 155 bps spread. These notes priced at 99.539 to yield 3.855%.
Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC and Santander Investment Securities Inc. were the bookrunners.
Banco Santander held a three-day roadshow that ended on Friday for the offering.
The securities are non-callable.
Proceeds from the deal will be used for general corporate purposes.
The issuer intends to apply to list the notes on the New York Stock Exchange.
The banking services company is based in Madrid.
| Issuer: | Banco Santander, SA
|
| Amount: | $2.5 billion
|
| Description: | Senior non-preferred debt securities
|
| Bookrunners: | Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC and Santander Investment Securities Inc.
|
| Co-lead managers: | Bankia SA, Bankinter SA, Banco de Sabadell, SA, UniCredit Capital Markets LLC
|
| Call: | Non-callable
|
| Trade date: | Oct. 17
|
| Settlement date: | Oct. 23
|
| Expected ratings: | Moody’s: Baa1
|
| S&P: BBB+
|
| Fitch: A-
|
| Distribution: | SEC registered
|
| Marketing: | Roadshow
|
|
|
| Five-year floaters
|
| Amount: | $500 million
|
| Maturity: | Feb. 23, 2023
|
| Coupon: | Libor plus 109 bps
|
| Price: | Par
|
| Yield: | Libor plus 109 bps
|
|
|
| Five-year notes
|
| Amount: | $1 billion
|
| Maturity: | Feb. 23, 2023
|
| Coupon: | 3.125%
|
| Price: | 99.808
|
| Yield: | 3.165%
|
| Spread: | Treasuries plus 120 bps
|
|
|
| 10-year notes
|
| Amount: | $1 billion
|
| Maturity: | Feb. 23, 2028
|
| Coupon: | 3.8%
|
| Price: | 99.539
|
| Yield: | 3.855%
|
| Spread: | Treasuries plus 155 bps
|
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