Santander lined up to help First Brands before demise

While the refinancing pitch was advertised as being led by Jefferies, Santander had a pre-existing relationship with the company. — Bloomberg

NEW YORK: When First Brands Group tried to refinance about US$6bil of debt over the summer, the auto-parts supplier lined up Banco Santander SA to work with Jefferies Financial Group Inc on the deal, according to people with knowledge of the matter, before it was shelved following investor concern.

The Spanish bank signed an engagement letter to work with Jefferies on the refinancing effort, before investors requested a quality of earnings report and some pressed for more information about the company’s off-balance-sheet borrowing.