Exhibit 99.1
[LOGO] SOVEREIGN BANCORP News Release
Corporate Headquarters: 1500 Market Street, Philadelphia, PA
FOR IMMEDIATE RELEASE
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DATE: 2/26/03 FINANCIAL CONTACTS
Jim Hogan 610-320-8496 jhogan@sovereignbank.com
Mark McCollom 610-208-6426 mmccollo@Sovereignbank.com
Tye Barnhart 610-988-0300 tbarnhar@sovereignbank.com
MEDIA CONTACT
Ed Shultz 610-371-3201 eshultz@sovereignbank.com
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Sovereign Bancorp Announces Tender Offer for 2004 Debt
Sovereign Bancorp, Inc. ("Sovereign") (NYSE: SOV - News),
parent company of Sovereign Bank ("Bank"), today announced that
it intends to make a tender offer to purchase any and all of its
$175 million of outstanding 8.625% Senior Notes due March 2004
("8.625% Notes") and any and all of its $200 million of its
outstanding 10.25% Senior Notes due May 2004 ("10.25% Notes").
Sovereign said that the tender price is $1,062.50 for each
$1,000 principal amount 8.625% Note and $1,091.25 for each
$1,000 principal amount 10.25% Note. Sovereign also said that
the tender offer would commence on Wednesday, February 26, 2003
at 9:00 a.m. ET and terminate on Tuesday, March 4, 2003 at 5:00
p.m. ET, unless extended by Sovereign.
James D. Hogan, Chief Financial Officer of Sovereign, said,
"The purpose of the tender offer is to accelerate the favorable
impact of 2004 debt retirement, to improve the quality of
Sovereign's balance sheet, and to improve the flexibility of
Sovereign's liabilities. This transaction is consistent with
our strategy over the last few years of reducing Sovereign's
high cost borrowings, reducing our double leverage ratio, and
decreasing the cash dividends required from Sovereign Bank to
fund Sovereign's debt service requirements," Hogan continued.
Funding for notes tendered for purchase pursuant to the
tender offer will be provided by a $120 million dividend made
from the capital of the Bank in the first quarter of 2003 and by
an advance under Sovereign's credit facility with the Bank of
Scotland.
Salomon Smith Barney and Lehman Brothers have been
appointed dealer managers for the tender offer. Questions
regarding the tender offer may be directed to the liability
management groups of each of the respective companies, as
follows:
Salomon Smith Barney Lehman Brothers
212-723-6106 212-528-7581
800-558-3745 800-438-3242
A live web-cast conference call will be held to discuss the
anticipated pro forma effects of the tender offer and
Sovereign's broader asset and liability management and capital
plans. Interested parties may access the web-cast on February
27, 2003 beginning at 9:00 a.m. ET via
http://www.videonewswire.com/SovereignTenderOffer/022703. A
replay of this web-cast can be accessed anytime from 11:00 a.m.
ET on February 27, 2003 through 6:00 p.m. ET March 21, 2003.
An electronic presentation document can be accessed
beginning Wednesday, February 26, 2003 at 9:00 a.m. ET at
http://ir.thomsonfn.com/IRUploads/8271/FileUpload/Restructuring.
ppt or at www.sovereignbank.com =>Investor Relations=>Financial
Reports=>Corporate Presentations. The presentation document
serves as a reference and summary for the live web-cast.
Sovereign Bancorp, Inc., ("Sovereign") headquartered in
Philadelphia, Pennsylvania, is the parent company of Sovereign
Bank, a $40 billion financial institution with approximately 525
community banking offices, over 1,000 ATMs and about 7,500 team
members in Connecticut, Massachusetts, New Hampshire, New
Jersey, New York, Pennsylvania, and Rhode Island. Sovereign is
among the 25 largest banking institutions in the United States.
For more information on Sovereign Bank, visit
www.sovereignbank.com or call 1-877-SOV-BANK.
Note:
This press release contains statements of Sovereign's
strategies, plans, and objectives, as well as estimates of
future operating results for 2003 and beyond for Sovereign
Bancorp, Inc. as well as estimates of financial condition,
operating efficiencies and revenue generation. These statements
and estimates constitute forward-looking statements (within the
meaning of the Private Securities Litigation Reform Act of
1995), which involve significant risks and uncertainties.
Actual results may differ materially from the results discussed
in these forward-looking statements. Factors that might cause
such a difference include, but are not limited to, general
economic conditions, changes in interest rates, deposit flows,
loan demand, real estate values, competition, terrorist attacks,
armed conflicts involving the U.S. Military; changes in
accounting principles, policies, or guidelines; changes in
legislation or regulation; and other economic, competitive,
governmental, regulatory, and technological factors affecting
the Company's operations, pricing, products and services.
Operating earnings may differ from net income due to items such
as merger-related charges, balance sheet restructuring charges,
and certain other non-recurring items.