MADRID - Banco Santander (BME:SAN) S.A. has initiated a cash tender offer for its outstanding GBP 600 million 1.50 percent fixed-rate senior non-preferred instruments due April 14, 2026. The offer commenced on Thursday and will expire at 5 p.m. CET on January 22, 2025, unless extended or amended at the discretion of the Offeror.
The Spanish banking giant aims to optimize its liquidity, debt maturity, and eligibility profile for TLAC/MREL instruments through this transaction. Notes purchased under this offer will be canceled and not re-issued or re-sold, while those not tendered will remain in circulation.
The purchase price for the notes will be determined on January 23, 2025, by the Sole Dealer Manager, factoring in market conventions, the benchmark security rate, the purchase spread, and accrued interest. The final price will reflect a yield to maturity based on the purchase yield as of the settlement date, which is expected to be January 27, 2025.
In addition to the tender offer, Santander has indicated its intention, subject to market conditions, to issue new sterling-denominated fixed-rate senior non-preferred notes. Noteholders participating in the tender offer may receive priority allocation for the new notes, subject to certain conditions and a separate application for their purchase.
The tender offer is subject to restrictions, particularly in the United States, where it is not being made directly or indirectly. The offer is also subject to restrictions in other jurisdictions, including the United Kingdom (TADAWUL:4280), France, Italy, and Spain.
This financial maneuver is part of Santander's broader strategy to manage its capital structure and follows established market practices for such corporate actions. Noteholders are advised to carefully consider the offer and consult with their financial advisors regarding participation.
The information in this article is based on a press release statement by Banco Santander S.A. and should be read in conjunction with the detailed terms outlined in the Tender Offer Memorandum available from the Sole Dealer Manager and the Tender Agent.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.