Santander prices tender for two series, increases cap for 2.875% notes

By Wendy Van Sickle

Columbus, Ohio, March 22 – Santander UK plc priced a pair of tender offers and increased the maximum tender amount for one of the offers, according to a 6-K filing with the Securities and Exchange Commission and a London Stock Exchange filing.

Santander 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.

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 tenders for $731,928,000 of the 2024 notes and $923,941,000 of the 2023 notes.

Because the amounts tendered exceed the maximum acceptance amounts, 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.

Pricing was 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 a total consideration $1,033.29 per $1,000 of the 2023 notes and on the 0.125% U.S. Treasury due Feb. 15, 2024 plus 25 bps for a total consideration $1,074.27 per $1,000 of the 2024 notes.

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

Santander will also pay interest on the notes.

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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