Santander wraps offers for 7.95% securities, 8.963% trust preferreds

By Susanna Moon

Chicago, July 13 - Banco Santander SA subsidiary Santander UK plc said it completed the tender offer for $1 billion of 7.95% term subordinated securities due 2029 and $1 billion of 8.963% noncumulative trust preferred securities issued by Abbey National Capital Trust I.

As of the offer expiration at 5 p.m. ET on July 12, holders had tendered $739,374,000 of the 7.95% notes and $633,636,000 of the 8.963% notes, according to a company press release.

The tender offer will settle on July 16. It began on July 3.

As previously reported, the company will pay $1,060 for each $1,000 principal amount of the 7.95% term securities and $1,030 for each $1,000 liquidation preference of the 8.963% trust preferreds.

Holders will also receive accrued interest or distributions up to but excluding the settlement date.

The company previously said the offer will enhance the quality of its capital structure through the generation of core tier 1 capital in light of the regulatory changes expected to be introduced through the implementation of the Basel III accord.

The dealer managers are Bank of America Merrill Lynch (888 292-0070 or 980 683-3215), Barclays (800 438-3242 or 212 528-7581) and Santander Investment Securities Inc. (212 407-0995), which joined the group on July 5. The information agent is Lucid Issuer Services Ltd. (+44 207 704 0880 or santander@lucid-is.com).

Banco Santander is a bank based in Madrid. Santander UK plc was formerly known as Abbey National plc.

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