Slaughter and May advised Santander UK Group Holdings plc on a consent solicitation

Slaughter and May advised Santander UK Group Holdings plc on a consent solicitation made to the holders of the outstanding £750,000,000 7.375% Fixed Rate Reset Perpetual Additional Tier 1 Capital Securities and the £500,000,000 6.75% Fixed Rate Reset Perpetual Additional Tier 1 Capital Securities, concerning certain amendments to the terms and conditions of each series of bonds relating to the cessation of LIBOR. At the meetings of the holders held on 3 December 2020 the proposed amendments were approved.

The exercise was the market first successful consent solicitation to holders of Additional Tier 1 securities in connection with the transition from LIBOR to SONIA linked reference rates. The consent solicitation was also the market first to add a spread adjustment to the new SONIA reference rate, calculated as the median difference over a 5 year historic period between 6 month Sterling LIBOR and realised SONIA over the corresponding period.