Santander Consumer Boost IPO Target to $1.88 Billion

Santander Consumer USA Holdings Inc. (SC), the U.S. auto-lending unit of the Spanish bank, raised the potential size of its initial public offering, which is expected to price tomorrow.

Santander consumer now plans to offer 75 million shares for $24 to $25 each, for a maximum amount of $1.88 billion, according to a filing today. The company and shareholders including KKR & Co. and Banco Santander SA (SAN) had earlier offered 65.2 million shares for $22 to $24 apiece. The shares are expected to begin trading Friday, listed on the New York Stock Exchange under the symbol SC.

Founded in 1995, Santander Consumer USA originates auto loans through car dealerships, manufacturers, banks and its direct-to-consumers website The Dallas-based company recently paid Chrysler Group LLC (CGC) $150 million to be the preferred provider of the automaker’s loans over the next 10 years under the brand Chrysler Capital.

Banco Santander will own 61 percent of the unit after the sale, Santander Consumer USA’s IPO filings show. A company backed by KKR, Warburg Pincus LLC and Centerbridge Capital Partners LLC, will own 10 percent. The funds acquired a 25 percent stake in 2011, when Banco Santander was offloading assets to bolster its finances.

Citigroup Inc. and JPMorgan Chase & Co. are managing the offering.

To contact the reporter on this story: Laura Lorenzetti in New York at

To contact the editor responsible for this story: Mohammed Hadi at

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