Santander UK tenders for five series, offers to buy 8.963% preferreds

By Jennifer Chiou

New York, July 30 - Santander UK plc announced the start of its tender offer for the following securities:

• £300 million of outstanding 5.827% step-up callable perpetual preferred securities issued on March 22, 2004 and with a tender price of 91;

• £175 million of 20-year step-up perpetual callable subordinated notes issued on Sept. 28, 2000 and with a tender price of 95;

• £275 million of 30-year step-up perpetual callable subordinated notes issued on Sept. 28, 2000 and with a tender price of par;

• £425 million of 15-year step-up perpetual callable subordinated notes issued on Sept. 28, 2000 and with a tender price of 95; and

• £150 million of 10 1/8% subordinated guaranteed bonds due 2023 originally issued on Feb. 4, 1993 and with a tender price of 120.

The company is also offering to purchase any and all of its 8.963% non-cumulative trust preferred securities originally issued by Abbey National Capital Trust I.

Members of the Santander Group hold £283,451,000 of the 5.827% securities, and they intend to participate in the offer. Members holding the three series of subordinated notes do not plan to tender their holdings.

The offer will end at 11 a.m. ET on Aug. 8. Settlement is slated for Aug. 13.

The dealer managers for the tender offer are Banco Santander, SA (44 20 7756 6615/7202; Patrick.El-Hawa@santandergbm.com/ heike.hoehl@santandergbm.com), Merrill Lynch International (attn: John Cavanagh, 44 20 7995 3715; john.m.cavanagh@baml.com) and Morgan Stanley & Co. International plc (44 20 7677 5040).

The tender agent is Lucid Issuer Services Ltd. (44 207 704 0880; santander@lucid-is.com, attn: Sunjeeve Patel / David Shilson).

8.963% preferreds offer

Santander UK is offering a tender price of $1,250 per $1,000 liquidation preference of the 8.963% trust preferreds, of which $366,364,000 is outstanding.

This offer will end at 5 p.m. ET on Aug. 8. Settlement will occur Aug. 13.

Participating holders will also receive accrued interest.

The dealer managers are BofA Merrill Lynch (888 292-0070 or 980 683-3215), Morgan Stanley (800 624-1808 or 212 761-1057) and Santander (212 407-0995). The tender agent is Lucid Issuer Services (44 207 704 0880 or santander@lucid-is.com).

The financial services company is based in London.

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