Santander, Santander Group price; issues firm in secondary market; strong supply eyed

By Cristal Cody

Tupelo, Miss., Oct. 27 – Deal action in the high-grade bond market continued on Friday with transactions from Santander UK plc and Santander UK Group Holdings plc.

Santander UK brought $1.5 billion of three-year senior notes in two tranches to the primary market.

Santander UK Group Holdings sold $1 billion of 11-year fixed-to-floating rate notes.

Primary action is expected to be strong in the upcoming week with market sources forecasting about $25 billion to $30 billion of supply.

In the secondary market on Friday, the Santander issues traded about 1 basis point to 4 bps tighter.

In its deal, Santander UK priced $1.5 billion of three-year senior notes (Aa3/A/A) in two tranches on Friday, according to a market source.

The $300 million three-year floating-rate notes priced at Libor plus 30 bps.

Santander UK sold $1.2 billion of 2.125% notes due Nov. 3, 2020 at a spread of Treasuries plus 52 bps.

BofA Merrill Lynch, Goldman Sachs & Co., Nomura, Santander Investment Securities Inc. and UBS Securities LLC were the bookrunners.

Meanwhile, Santander UK Group Holdings sold $1 billion of 3.823% 11-year fixed-to-floating rate notes (Baa1/BBB/A) at a spread of Treasuries plus 140 bps on Friday, according to a market source.

The notes tightened from initial price talk in the Treasuries plus 155 bps area.

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