| Issuer: | Sovereign Bancorp, Inc. | |
| Ratings: | Baa1/BBB (stable/stable) | |
| Title of the Series: | Senior Floating Rate Notes Due 2010 | |
| Total Aggregate Principal Amount Initially Being Issued: | $300,000,000 | |
| Issue Price: | 100.00% | |
| Net Proceeds (before expenses) to the Issuer: | $299,250,000 | |
| Trade Date: | March 20, 2007 | |
| Settlement Date: | March 23, 2007 (T+3) | |
| Maturity Date: | March 23, 2010 | |
| Note Type: | Senior Unsecured Notes | |
| Minimum Denominations: | $1,000, and integral multiples of $1,000 in excess thereof | |
| Day Count Fraction: | Actual/360 | |
| Interest Rate: | 3 month LIBOR + 23 bps | |
| Interest Rate Basis: | 3 month LIBOR (Telerate page 3750) | |
| Business Day Convention: | Modified Following Business Day Convention |
| Index Maturity: | 90 days | |
| Spread: | 23 bps | |
| Interest Payment Dates: | Quarterly on March 23, June 23, | |
| September 23, and December 23, | ||
| commencing on June 23, 2007, and at | ||
| maturity | ||
| Interest Determination Dates: | Second London banking day preceding | |
| the applicable interest reset date | ||
| Interest Reset Dates: | March 23, June 23, September 23, and | |
| December 23 | ||
| Calculation Agent: | BNY Midwest Trust Company | |
| Joint Lead Manager and Sole Bookrunner: | Banc of America Securities LLC | |
| Joint Lead Manager: | Sovereign Securities Corporation, LLC | |
| Co-Manager: | Santander Investment Securities Inc. | |
| CUSIP No. | 845905 AX6 |
