Banco Santander (NYSE: SAN) lines up preferred redemption

Posted by Tammy Falkenburg on Oct 14th, 2026

What happened

Banco Santander, S.A. (NYSE: SAN) said on October 14, 2026 that it will redeem its preferred Tier 1 securities in full. The notice covers the Series 10 4.750% Non-Step-Up Non-Cumulative Contingent Convertible Perpetual Preferred Tier 1 Securities.

The Optional Redemption Date is November 12, 2026. The redemption price is $200,000 per Note, plus accrued but unpaid distributions for the current Distribution Period to, but excluding, that date. The aggregate Liquidation Preference of the Notes to be redeemed is $298.4 million, which the filing says is all Notes outstanding.

On that date, the redemption price becomes due and payable. The filing also says distributions on the Notes stop accruing on and after the Optional Redemption Date, so the series will end rather than continue.

Key numbers

Metric	Latest	Source
Aggregate liquidation preference	$298.4 million	SEC 6-K
Redemption price per Note	$200,000 per Note	SEC 6-K
Optional Redemption Date	November 12, 2026	SEC 6-K

Why it matters

OptimistFi's case is that Santander works if its deposit-funded commercial-bank scale keeps producing resilient spread income and credit losses stay contained as the rate cycle normalizes. This filing is a capital action, not an operating result, so it matters mainly as a balance-sheet change.

At 100% of the series' liquidation preference, the redemption retires the whole issue rather than trimming it. That makes the move easy to measure, but it does not show whether Santander is generating stronger spread income or better credit performance.

The filing gives a clear endpoint, which makes the capital effect visible. That gives investors a binary check on the preferred layer, not on the core business drivers in OptimistFi's case.

Browse: stock research on every company OptimistFi covers

What's next

The next dated event is November 12, 2026, when the Notes are scheduled to be redeemed in full. If that happens on schedule, distributions stop accruing and the full $298.4 million series is retired.

The filing also says holders should present and surrender the Notes for payment. That date is the nearest checkpoint in the notice for investors to verify. It closes the loop on the full redemption if completed as announced.