Banco Santander's (SAN) exposure to First Brands and its founder, Patrick James, has risen to about $300 million after James defaulted on a loan he took out earlier this year to acquire a French auto parts maker, The Wall Street Journal reported Wednesday, citing people familiar with the matter.

The loan was for about $230 million and adds to about $77 million in receivables financing owed to Santander and a $55 million facility with First Brands units in Mexico and Brazil, according to the report.

Santander did not immediately respond to MT Newswires' request for comment.

Shares of Banco Santander were up 1.6% in recent trading.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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