Santander Raising U.S. Capital (STD, SAN)

The same can be in one or more offerings of senior or subordinated debt securities. The company’s “use of proceeds” is the common ‘for general corporate purposes’ in its prospectus.  The general definition includes debt reduction, possible acquisitions, stock repurchases and more.  The net proceeds may be temporarily invested or used to reduce short-term debt.

Santander did not signal that this was the last financing round ever.  The company specifically noted that it may engage in additional financings of a character and amount to be determined as the need arises.

Being a Spanish bank and raising money via the U.S. subsidiary is fairly impressive considering all of the turmoil in the lands of the PIIGS.  The afternoon pricing of Santander ADRs is up 3.7% at $12.10 today.

The full SEC filing is here.  We would note that there was a newswire release on Friday from Banco Santander Chile (NYSE: SAN) with the establishment of a US$5.5 billion Medium Term Notes Program, which also was listed being on a subordinated or unsubordinated basis.  Banco Santander S.A. is the majority holder of Banco Santander Chile with some 75% of the voting control.

JON C. OGG