Santander UK completes tender offers for six note, preferred series

By Susanna Moon

Chicago, Aug. 9 - Santander UK plc said it wrapped the tender offers for several series of notes Thursday.

The first offer began July 30 and ended at 11 a.m. ET on Aug. 8 with settlement set for Aug. 13.

The company accepted tenders for the following securities, according to a press release:

• £293,378,000 of the £300 million outstanding 5.827% step-up callable perpetual preferred securities issued on March 22, 2004 and with a tender price of 91;

• £10.01 million of the £175 million 20-year step-up perpetual callable subordinated notes issued on Sept. 28, 2000 and with a tender price of 95;

• £5,133,000 of the £275 million 30-year step-up perpetual callable subordinated notes issued on Sept. 28, 2000 and with a tender price of par;

• £2,922,000 of the £425 million 15-year step-up perpetual callable subordinated notes issued on Sept. 28, 2000 and with a tender price of 95; and

• £1.65 million of the £150 million 10.125% subordinated guaranteed bonds due 2023 originally issued on Feb. 4, 1993 and with a tender price of 120.

Members of the Santander Group held £283,451,000 of the 5.827% securities at the beginning of the offer, and they intended to participate in the offer, according to a previous press release. Members holding the three series of subordinated notes did not plan to tender their holdings, the previous press release noted.

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

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

Investors had tendered $177,002,000 of the trust preferreds by the end of the offer at 5 p.m. ET on Aug. 8. Settlement has been set for Aug. 13.

The tender offer price is $1,250 per $1,000 liquidation preference of the 8.963% trust preferreds, of which $366,364,000 is outstanding.

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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