MADRID - Banco Santander (BME:SAN) S.A. announced on Monday the initiation of four separate cash purchase offers for various series of its outstanding fixed-rate notes due in 2025 and 2026. The offers, which are independent of one another, began on January 7, 2025, and are set to expire at 5 p.m. New York City time on January 14, 2025, unless extended or terminated by the bank.
The bank is seeking to repurchase its 3.496% Senior Preferred Fixed Rate Notes due March 24, 2025, 2.746% Senior Non Preferred Fixed Rate Notes due May 28, 2025, 5.147% Senior Non Preferred Fixed Rate Notes due August 18, 2025, and 1.849% Senior Non Preferred Fixed Rate Notes due March 25, 2026. The total principal amount outstanding for these notes ranges from $1.25 billion to $1.75 billion.
Santander has stated that the purpose of the offers is to manage its liabilities and capital actively. Notes acquired in these offers are expected to be canceled and will not remain outstanding, while notes not tendered and accepted will continue to be in circulation.
The consideration for each series of notes will be calculated using a fixed spread over the reference U.S. Treasury Security yield, with the exact amount to be determined on January 14, 2025. In addition to the purchase price, note holders will receive accrued and unpaid interest up to, but excluding, the settlement date, which is anticipated to be around January 17, 2025.
The aggregate consideration for the notes, excluding accrued interest, will not exceed $2 billion, as stipulated by the Maximum Purchase Consideration Condition. If this condition is not met for each series, notes will be accepted based on their Acceptance Priority Level, with level 1 being the highest.
The bank reserves the right to waive the Maximum Purchase Consideration Condition, extend, terminate, or modify the terms of the offers at any time. The results of the offers will be announced promptly after the expiration time.
Santander US Capital Markets LLC is acting as the Dealer Manager, with D.F. King & Co., Inc. serving as the Information and Tender Agent for the offers. The offers are subject to the terms and conditions outlined in the Offer to Purchase document.
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