On October 25, 2011, Banco Santander S.A. announced that it has agreed to sell an interest in Santander Consumer USA, its U.S. automotive financing unit, to a group of private equity investors for $1 billion.
Cravath is representing Banco Santander and its subsidiaries in connection with this transaction. Under the terms of the agreement, Sponsor Auto Finance Holding Series, a newly formed entity owned by funds affiliated with Warburg Pincus LLC, Kohlberg Kravis Roberts & Co. and Centerbridge Capital Partners LLC, will invest a combined $1 billion for a 25% share in Santander Consumer USA. Dundon DFS LLC, an entity affiliated with the current CEO of Santander Consumer USA, will invest approximately $150 million to increase its holding in Santander Consumer USA to 10%.
The Cravath team included partners Richard Hall and Joel F. Herold on corporate matters and Michael L. Schler on tax matters.