Announcement in relation to the James Hay/Cater Allen Selected UK Banking plans
06 February 2009
by James Hay
Should any UK Bank, included in a basket of shares for the purposes of a Cater Allen or James Hay Structured Product become nationalised, Abbey National Treasury Services (ANTS) as the Issuer of the underlying Securities of such Products, would regard this as an Extraordinary Event under the terms of the Base Prospectus governing such Securities.
Under such circumstances there is a process in place which would review the exact terms of the nationalisation, or indeed any other Extraordinary Event. Such review may require action or adjustments to the Securities as are deemed necessary to take account of the Extraordinary Event.
These actions or changes would impact the Product. In the event of any such Extraordinary Event occurring we would write to you to confirm any changes required by ANTS.
Useful information
ANTS, the issuer of the Medium Term Note (MTN) comprising the Securities under the Products, is guaranteed by Abbey National plc, and both entities are ultimately part of Grupo Santander. Both are rated AA by the rating agency Standard & Poor's. The investment would still be protected at maturity, as long as Abbey National Treasury Services Ltd remains solvent.
In relation to the James Hay/Cater Allen Selected UK Banking Plan (Tranches 1 & 2), if the Product does not have an early kick-out during the life of the investment, the investor will receive 100% of the performance of the basket of shares in its' last year, subject to a monthly average value in years 5 and 6 (Tranche 2) and year 5 (Tranche 1).
As an example, if one of the shares comprising the basket has experienced a negative performance as measured from the Initial Strike Price but the remaining three shares in the basket have experienced strong positive performances from their Initial Strike Level, then the investor may still receive an additional payout plus the return of their initial investment.
ANTS, is permitted to make adjustments to the MTN according to the Base Prospectus governing the Notes. We would ordinarily expect any such actions and adjustments to be consistent with market practice.