U.S. Unit of Spain’s Santander to Hold IPO

Santander Consumer USA Holdings Inc., the unit of Spain's Banco Santander SA that has formed Chrysler Group LLC's quasi-captive lending arm, has declared that it plans an initial public offering in the U.S.

Santander's filing with American securities regulators says the IPO is aimed at raising at least $50 million (€39 million), which is likely a placeholder number until the deal's details are worked out.

Santander didn't indicate the timing of the offering. But The Wall Street Journal cites an unidentified source who says the company plans to go public in the fourth quarter of this year.

The Dallas, Tex.-based lender focused mainly on subprime loans on used vehicles until it signed a 10-year deal in February to become Chrysler's preferred lender. Santander Consumer makes loans under the Chrysler Capital name to the carmaker's U.S. customers and dealers.

The loan unit says it aims to become the preferred lender of other automakers.