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Santander Consumer USA successfully completes its initial public offering, valuing the company at USD 8.3 billion

Madrid, January 23, 2014 – Santander Consumer USA (SCUSA), Santander’s US auto finance subsidiary, has successfully completed an initial public offering of 21.6% of its capital. The company fixed the price of the offer last night at USD 24 per share, valuing Santander Consumer USA as a whole at USD 8.3 billion and the bank’s stake at USD 5 billion. The offer was ten times oversubscribed.

After the transaction, Banco Santander will control 60.7% of SCUSA’s capital. The bank sold a 4% stake, while the remaining part was sold by Auto Finance Holdings Series, a company owned by Centerbridge Partners, Kohlberg Kravis Roberts & Co., Warburg Pincus and DFS Sponsor Investments.
 
The IPO generates a capital gain of EUR 740 million for the Santander group, which will be used entirely to strengthen the balance sheet.

In 2006, Santander acquired a 90% stake in Drive Financial from HBOS and the company’s founding partners for USD 651 million. Drive changed its name to Santander Consumer USA in 2008 and, in 2011, the bank reduced its stake to 65% when Auto Finance Holdings Series and Dundon DFS bought stakes through a capital expansion. This generated a capital gain of USD 1 billion for the bank, as a result of increasing SCUSA’s value to USD 4 billion.

The Santander Group has informed that it intends to increase the equity of Santander Holdings USA, which groups Santander Bank N.A and Santander Consumer USA, by up to USD 2 billion, to support its growth plans in the United States.

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