Morning Commentary: Capital One sells $1.25 billion; Scotiabank details sale of floaters

By Devika Patel

Knoxville, Tenn., Jan. 25 – Primary activity in the investment-grade bond market cooled on Friday with no new issuers reported early in the session.

Meanwhile, McLean, Va.-based Capital One Financial Corp. reported selling $1.25 billion of 3.9% five-year senior notes (Baa1/BBB/A-) on Thursday.

And Toronto-based Bank of Nova Scotia said it sold $415 million of two-year floating-rate senior notes (A2//AA-) on Thursday.

Capital One prices

Financial services company Capital One sold $1.25 billion of 3.9% five-year senior notes.

The notes were sold with a spread of Treasuries plus 140 basis points. The notes priced at 99.784 to yield 3.948%.

Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Morgan Stanley & Co. LLC, Wells Fargo Securities LLC and Capital One Securities Inc. are the bookrunners.

Proceeds will be used for general corporate purposes, which may include debt repayment, common stock or other securities redemptions and repurchases, acquisitions, working capital, capital expenditures and investments.

Bank of Nova Scotia active

Bank of Nova Scotia priced $415 million of two-year floating-rate senior notes at par on Thursday, according to an FWP filed with the Securities and Exchange Commission.

The floaters will have a coupon equal to Libor plus 42 bps.

Scotia Capital (USA) Inc. and UBS Securities LLC are the bookrunners.

Proceeds will be used for general business purposes.

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