Grupo Financiero Santander Mexico SAB de CV said it priced $500 million in aggregate principal amount of 8.500% perpetual subordinated non-preferred contingent convertible Additional Tier 1 capital notes, which were sold for 100% of their principal amount.
Each note is mandatorily convertible, in certain regulatory circumstances, into the company's ordinary shares at the higher of the volume weighted average of the shares' closing price on the Mexican stock exchange for the 30 business days preceding the conversion, and a floor price of 20.30 Mexican pesos
Spanish parent Banco Santander SA has agreed to purchase approximately 88% of the aggregate amount of the notes, the Mexican unit said in a Dec. 23 press release.
Santander Investment Securities Inc., Goldman Sachs & Co. and Morgan Stanley & Co. LLC are the joint book-running managers for the offering, which has been registered with the U.S. SEC.
As of Dec. 26, US$1 was equivalent to 20.65 Mexican pesos.