Banco Santander concludes note purchase offers By Investing.com

MADRID – Santander Bank: (BME.) SA announced the successful completion of its offers to purchase various series of its outstanding fixed-rate notes, with an aggregate principal amount accepted for purchase of US$3.45 billion, as part of the bank’s liability management strategy.

The offerings, which commenced on January 7, 2025, were for four series of notes maturing in 2025 and 2026, including a 3.496% Senior Preferred Fixed Rate through 2025. The bank has waived the condition of the maximum purchase consideration, which was originally set at USD 2 billion, which allows for a larger buyback than originally planned.

The tendered notes included $586.4 million of the 3.496% notes, $917.6 million of the 2.746% notes, and $977 million of the 1.849% notes. which is expected to occur around January 17, 2025, the remaining outstanding amounts will be significantly reduced.

Investors who tendered their notes by 5:00 p.m. New York time on January 14, 2025 will receive the stated consideration plus accrued and unpaid interest up to but not including the maturity date. Notes tendered using guaranteed delivery procedures will also be accepted if they will be delivered by the guaranteed delivery date.

The repurchased notes are expected to be canceled and not outstanding, thereby reducing the bank’s future debt obligations.

This financial maneuver reflects the active management of Banco Santander’s debt portfolio and capital structure. The bank did not comment on the impact of this transaction on its financial position or performance.

The information in this article is based on a press release.

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