Banco Santander SA's U.S. consumer lender subsidiary, which originates subprime loans for new- vehicle purchases and leases, is seeking to raise as much as $1.56 billion in an initial public offering.
Santander Consumer USA Holdings Inc. said selling stockholders, including Banco Santander and funds managed by Centerbridge Partners LP, Kohlberg Kravis Roberts & Co. and Warburg Pincus LLC, are offering 65.2 million shares. The price is $22 to $24 apiece, according to a regulatory filing today.
Santander Consumer USA, based in Dallas, is 65 percent owned by Madrid-based Banco Santander, the filing shows. Founded in 1995, Santander Consumer USA originates auto loans through car dealerships, manufacturers and banks. The company recently paid Chrysler Group LLC $150 million to be the preferred provider of the automaker's loans over the next 10 years under the brand Chrysler Capital.
After the IPO, the company plans to pay quarterly dividends of 15 cents per share, according to the regulatory filing.
Santander Consumer USA has applied to list on the New York Stock Exchange under the symbol "SC." Citigroup Inc. and JPMorgan Chase & Co. are managing the offering.
