Banco Santander U.S. Consumer Finance Unit Files for IPO

Banco Santander SA (SAN)’s U.S. consumer lender, which originates about 40 percent of its loans for new-vehicle purchases and leases, filed for an initial public offering in the U.S.

Santander Consumer USA Holdings Inc. filed to raise $50 million, according to a regulatory filing that didn’t disclose how many shares will be offered or at what price. The amount is a placeholder and may change.

Santander Consumer agreed in February to originate loans and leases for Chrysler Group LLC, helping to more than double the percentage of its business that comes from vehicle financing, according to a June 3 filing. In the U.S., where there were about $800 billion of auto loans outstanding as of April 30, no individual lender accounts for more than 10 percent of the market, Santander Consumer’s filing shows.

Santander Consumer, based in Dallas, is 65 percent-owned by Madrid-based Banco Santander, the filing shows. Funds managed by Centerbridge Partners LP, KKR & Co. and Warburg Pincus LLC own a 25 percent stake, and Chief Executive Officer Thomas Dundon owns 10 percent, according to the filing.

Net income attributable to Santander Consumer totaled about $751 million in the 12 months through March 31, the filing showed. The company didn’t name the IPO’s underwriters.

To contact the reporter on this story: Ruth David in London at rdavid9@bloomberg.net

To contact the editor responsible for this story: Jacqueline Simmons at jackiem@bloomberg.net

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