PHILADELPHIA, May 15 /PRNewswire-FirstCall/ -- Sovereign Bancorp, Inc.
("Sovereign") (NYSE: SOV), parent company of Sovereign Bank, announced
today that it and its wholly-owned subsidiary, Sovereign Capital Trust V
(the "Trust") priced an offering of $160 million aggregate liquidation
amount of the Trust's capital securities due 2036. The capital securities,
when issued, will represent preferred beneficial interests in the Trust.
Distributions on the capital securities will accrue from the original issue
date and will be payable, quarterly in arrears on the 15th day of February,
May, August and November of each year, beginning on August 15, 2006 at an
annual rate of 7.75%. The capital securities are not redeemable prior to
May 15, 2011. The Trust filed an application with the New York Stock
Exchange to list the capital securities under the symbol "SOVPrB".
The proceeds from the offering will be used to finance a portion of the
purchase price for Sovereign's pending acquisition of Independence
Community Bank Corp., which is expected to close on or before June 1, 2006.
Citigroup Global Markets, Inc., Bear, Stearns & Co. Inc. and J.P.
Morgan Securities Inc. are acting as joint book-running managers of the
offering. Janney Montgomery Scott, LLC, Ryan Beck & Co., Santander
Investment Securities, Inc. and Sovereign Securities Corporation are
co-managers.
Sovereign Bancorp, Inc. ("Sovereign") (NYSE: SOV) is the parent company
of Sovereign Bank, a pro forma $83 billion financial institution with
nearly 800 community banking offices, over 2,000 ATMs and approximately
12,000 team members with principal markets in the Northeast United States
after giving effect to the Independence acquisition and recently announced
branding agreement in which Sovereign ATMs will be placed in CVS/pharmacy
locations. Sovereign offers a broad array of financial services and
products including retail banking, business and corporate banking, cash
management, capital markets, wealth management and insurance. Sovereign is
the 18th largest banking institution in the United States. For more
information on Sovereign Bank, visit http://www.sovereignbank.com or call
1-877-SOV-BANK
This press release shall not constitute an offer to sell or a
solicitation of an offer to buy the securities, nor shall there be any sale
of the securities in any state or jurisdiction in which such offer,
solicitation or sale would be unlawful prior to registration or
qualification under the securities laws of such state or jurisdiction. This
release is intended to be disclosure through methods reasonably designed to
provide broad, non- exclusionary distribution to the public in compliance
with the Securities and Exchange Commission's Fair Disclosure Regulation.
This release may contain forward-looking statements that are estimates
reflecting the best judgment of Sovereign based on currently available
information. Such forward-looking statements involve actual known and
unknown risks, uncertainties, contingencies and other factors that could
cause actual results, performance or achievements to differ materially from
those stated. Such risks, uncertainties, contingencies and other factors,
many of which are beyond the control of Sovereign, include overall
economic, financial and business conditions; trends for the continued
growth of the businesses of Sovereign; the ability to implement
productivity and cost reduction efforts; the overall financial condition of
Sovereign's customers; the ability of vendors and business partners to
continue to provide products and services to Sovereign; the continued
successful integration of acquired companies, including Independence
Community Bank Corp., and the ability to realize anticipated revenues,
economies of scale, cost synergies and profitability; pricing and other
competitive factors in the industry; the ability to attract and retain
needed management; the impact of consolidation in the banking industry;
volatility in the market for Sovereign's stock and in the financial markets
generally; access to capital and financing; the demand for Sovereign's
products and services; variations in costs or expenses; changes in tax law
and regulation; changes in accounting rules and standards; and other risks
and uncertainties described in Sovereign's reports and filings with the
Securities and Exchange Commission.
SOURCE Sovereign Bancorp, Inc.
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Related links:
http://www.sovereignbank.com
CONTACT:
FINANCIAL CONTACTS: Mark McCollom,
+1-610-208-6426, mmccollo@sovereignbank.com, or Stacey Weikel,
+1-610-208-6112, sweikel@sovereignbank.com, or MEDIA CONTACT: Ed
Shultz, +1-610-378-6159, eshultz1@sovereignbank.com, all of
Sovereign Bancorp, Inc.
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