Santander lifts maximum tender amount on 2.875% notes; maximum on 2.1% notes unchanged

By Taylor Fox

New York, March 22 – Santander UK plc increased the maximum tender amount for its outstanding $946,465,000 2.875% notes due 2024 (ISIN: US80283LAX10) to $378,586,000 from $236,616,000, according to a 6-K filing with the Securities and Exchange Commission. The $236,616,000 maximum tender amount of its $1,172,545,000 2.1% notes due 2023 (ISIN: US80283LAY92) remains unchanged.

As of the 5 p.m. ET March 19 early tender time, Santander had received $731,928,000 of the 2024 notes and $923,941,000 of the 2023 notes.

Because the amount tendered exceeds the maximum acceptance amount, Santander said it accepted $293,136,000 of the 2023 notes at a 21.1784% proration factor, and $378,586,000 of the 2024 notes at a 50.1970% proration factor.

As previously reported, pricing of the notes will be calculated at 10 a.m. ET on March 22 based on the 0.125% U.S. Treasury security due Feb. 28, 2023 plus 10 basis points for the 2.1% notes and on the 0.125% U.S. Treasury due Feb. 15, 2024 plus 25 bps for the 2.875% notes.

Holders who tender notes prior to the early tender time will receive the early tender payment, which includes $30 per $1,000 of notes tendered.

Santander will also pay interest on the notes.

Notes tendered at or prior to the early tender time will receive priority over those tendered after the early tender time.

Santander does not expect to accept for purchase any further notes tendered.

The withdrawal deadline has now passed.

The early settlement date is expected to be March 23.

The offers will expire at 11:59 p.m. ET on April 5.

The final settlement date is expected to be on April 7.

J.P. Morgan Securities LLC (212 834-4045, 866 834-4666, +44 20 7134 2468; liability_management_EMEA@jpmorgan.com) and Santander Investment Securities Inc. (212 940-1442, 855 404-3636) are the dealer managers, and Lucid Issuer Services Ltd. (+44 20 7704 0880, santander@lucid-is.com) is the information and tender agent.

The financial services company is based in London.

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