Banco Santander Prices $1.5 Billion Contingent Convertible Perpetual Preferred Tier 1 Securities
SAN sits 59% above its 52-week low of $7.82 on light trading volume (0.4× avg).
Summary
Banco Santander priced a $1.5 billion offering of high-risk, deeply subordinated contingent convertible perpetual preferred Tier 1 securities to refinance existing debt and for general corporate purposes.
Key Events · Financing and Capital Events · SAN
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Capital Raise Details
Banco Santander priced $1.5 billion of 7.250% Non-Step-Up Non-Cumulative Contingent Convertible Perpetual Preferred Tier 1 Securities.
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Use of Proceeds
Proceeds will be used to refinance outstanding AT1 securities and for general corporate purposes.
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Risk Profile
These perpetual securities are deeply subordinated, non-cumulative, and subject to mandatory conversion into ordinary shares if the CET1 ratio falls below 5.125%, as well as resolution authority 'bail-in' powers.
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Pricing & Listing
The notes were issued at 100% of their $200,000 liquidation preference per note and the company intends to apply for listing on the NYSE.
Analysis · SAN · Finance
Banco Santander has priced a $1.5 billion offering of 7.250% Non-Step-Up Non-Cumulative Contingent Convertible Perpetual Preferred Tier 1 Securities. These deeply subordinated instruments are designed to enhance the bank's Additional Tier 1 capital, with proceeds primarily used to refinance existing AT1 securities and for general corporate purposes. The securities carry significant risks, including discretionary distribution cancellation and mandatory conversion into ordinary shares if the bank's CET1 ratio falls below 5.125%, and are subject to resolution authority 'bail-in' powers.
At the time of this filing, SAN was trading at $12.43 on NYSE in the Finance sector, with a market capitalization of approximately $185.2B. The 52-week trading range was $7.82 to $13.24. This filing was assessed with neutral market sentiment and an importance score of 7 out of 10.