PHILADELPHIA, June 6 /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 VI
(the "Trust") priced an offering of $300 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, semiannually in arrears on the 13th day of June
and December of each year, beginning on December 13, 2006 at an annual rate
of 7.908%. The proceeds from the offering will be used for general
corporate purposes.
Citigroup Global Markets, Inc., Bear, Stearns & Co. Inc., J.P. Morgan
Securities Inc. and Santander Investment Securities, Inc. are acting as
joint book-running managers of the offering. Lehman Brothers, Morgan
Stanley, 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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