By Marisa Wong
Los Angeles, Jan. 5 – Santander UK Group Holdings plc priced $1 billion of six-year fixed-to-floating rate senior notes (Baa1/BBB/A) on Tuesday, according to an FWP filed Wednesday with the Securities and Exchange Commission.
The notes start with a 2.469% coupon, priced with a spread of 110 basis points to Treasuries.
Price talk was in the Treasuries plus 135 bps area, a market source had said.
The coupon converts to a floating rate starting Jan. 11, 2027. The floating rate will be SOFR plus 122 bps, calculated quarterly.
The notes are callable in whole at par on Jan. 11, 2027. The notes are also callable at par if a loss absorption disqualification event or tax event occurs.
Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, Santander Investment Securities Inc. and Wells Fargo Securities, LLC are the joint bookrunners.
Proceeds will be used for general corporate purposes.
Santander UK is a London-based financial services company.
| Issuer: | Santander UK Group Holdings plc
|
| Amount: | $1 billion
|
| Issue: | Fixed-to-floating rate senior notes
|
| Maturity: | Jan. 11, 2028
|
| Bookrunners: | Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, Santander Investment Securities Inc. and Wells Fargo Securities, LLC
|
| Coupon: | 2.469% initially, resets on Jan. 11, 2027 to SOFR plus 122 bps
|
| Price: | Par
|
| Yield: | 2.469%
|
| Spread: | Treasuries plus 110 bps
|
| Call options: | In whole at par on Jan. 11, 2027; at par if a loss absorption disqualification event or tax event occurs
|
| Trade date: | Jan. 4
|
| Settlement date: | Jan. 11
|
| Ratings: | Moody’s: Baa1
|
| S&P: BBB
|
| Fitch: A
|
| Distribution: | SEC registered
|
| Price talk: | Treasuries plus 135 bps area
|
| Cusip: | 80281LAR6
|
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