By Devika Patel
Knoxville, Tenn., Oct. 27 – Capital One Financial Corp. offered further details about a $2.5 billion issue of senior notes (Baa1/BBB/A-) that priced in three tranches on Thursday, according to an FWP filed with the Securities and Exchange Commission.
Capital One sold $400 million of three-year floating-rate notes at Libor plus 45 basis points. These notes priced at par.
The company brought $600 million of 2.4% three-year fixed-rate notes at a spread of Treasuries plus 68 bps. These notes priced at 99.908 to yield 2.432%.
In the final tranche, Capital One priced $1.5 billion of 3.3% seven-year notes at a Treasuries plus 105 bps spread. These notes priced at 99.709 to yield 3.347%.
BofA Merrill Lynch, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, RBC Capital Markets, LLC and Capital One Securities were the bookrunners.
Proceeds will be used for general corporate purposes, including debt repayment, redemptions and repurchases of common stock or other securities, acquisitions, working capital, capital expenditures and investments in subsidiaries.
Capital One is a McLean, Va.-based financial services company.
| Issuer: | Capital One Financial Corp.
|
| Amount: | $2.5 billion
|
| Description: | Senior notes
|
| Bookrunners: | BofA Merrill Lynch, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, RBC Capital Markets, LLC and Capital One Securities
|
| Co-managers: | Academy Securities Inc., Blaylock Robert Van, LLC, Samuel A. Ramirez & Co. Inc. and Williams Capital Group LP
|
| Trade date: | Oct. 26
|
| Settlement date: | Oct. 31
|
| Ratings: | Moody’s: Baa1
|
| S&P: BBB
|
| Fitch: A-
|
| Distribution: | SEC registered
|
|
|
| Three-year floaters
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| Amount: | $400 million
|
| Maturity: | Oct. 30, 2020
|
| Coupon: | Libor plus 45 bps
|
| Price: | Par
|
| Call: | Par call after Sept. 30, 2020
|
|
|
| Three-year notes
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| Amount: | $600 million
|
| Maturity: | Oct. 30, 2020
|
| Coupon: | 2.4%
|
| Price: | 99.908
|
| Yield: | 2.432%
|
| Spread: | Treasuries plus 68 bps
|
| Call: | Par call after Sept. 30, 2020
|
|
|
| Seven-year notes
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| Amount: | $1.5 billion
|
| Maturity: | Oct. 30, 2024
|
| Coupon: | 3.3%
|
| Price: | 99.709
|
| Yield: | 3.347%
|
| Spread: | Treasuries plus 105 bps
|
| Call: | Par call after Sept. 30, 2024
|
|
|
|
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