Santander UK holders vote for converting Libor rates to Sonia rates

By Marisa Wong

Los Angeles, Dec. 18 – Santander UK plc announced that holders of four series of its covered bonds voted in favor of amending the terms of the bonds so that floating interest rates would be based on Sonia instead of Libor.

The affected bonds are Santander UK’s £1 billion series 23 5.75% fixed-to-floating covered bonds due March 2, 2026 (ISIN: XS0596191360), £750 million series 37 5.25% fixed-to-floating covered bonds due Feb. 16, 2029 (ISIN: XS0746621704), £75 million series 42 floating-rate covered bonds due March 23, 2027 (ISIN: XS0761325009) and £1 billion series 66 floating-rate covered bonds due Nov. 16, 2022 (ISIN: XS1719070390).

Each of the bonds are guaranteed by Abbey Covered Bonds LLP under the company’s €35 billion global covered bond program.

At the bondholder meetings held on Dec. 18, 99.53% of the series 23 bondholders, 99.21% of the series 37 bondholders, 100% of the series 42 bondholders and 99.03% of the series 66 bondholders voted in favor of the extraordinary resolution to amend the bonds.

In a separate announcement on Friday, Santander announced new pricing terms for the series 42 and series 66 bonds. The new margins are based on a newly calculated Libor vs. Sonia interpolated basis.

Effective from Dec. 23, the Libor vs. Sonia interpolated basis is 9.6 basis points for the series 42 bonds and 3.9 bps for the series 66 bonds.

Santander UK is a London-based wholly owned subsidiary of financial services company Banco Santander, SA.

© 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.