Published on 3/7/2017 in the Prospect News Investment Grade Daily.
New Issue: Capital One sells $2 billion fixed-rate notes, floaters in three parts
By Devika Patel
Knoxville, Tenn., March 7 – Capital One Financial Corp. priced $2 billion of fixed- and floating-rate notes (Baa1/BBB/A-) in three tranches, according to an FWP filing with the Securities and Exchange Commission.
Capital One sold $400 million of five-year floating-rate notes at par to yield Libor plus 95 basis points.
The company also sold $850 million of 3.05% five-year fixed-rate notes at 99.936 to yield 3.064%, or 105 bps over Treasuries.
Capital One also sold $750 million of 3.75% 10-year fixed-rate notes at 99.694 to yield 3.787%, or 130 bps over Treasuries.
Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, BofA Merrill Lynch, Morgan Stanley & Co. LLC and Capital One Securities, Inc. were the bookrunners.
Proceeds will be used for general corporate purposes.
Capital One is a McLean, Va.-based financial services company.
| Issuer: | Capital One Financial Corp.
|
| Amount: | $2 billion
|
| Description: | Fixed- and floating-rate notes
|
| Bookrunners: | Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, BofA Merrill Lynch, Morgan Stanley & Co. LLC and Capital One Securities, Inc.
|
| Co-managers: | Citigroup Global Markets Inc., Academy Securities Inc., Mischler Financial Group, Inc.
|
| Trade date: | March 6
|
| Settlement date: | March 9
|
| Ratings: | Moody’s: Baa1
|
| S&P: BBB
|
| Fitch: A-
|
| Distribution: | SEC registered
|
|
|
| Floaters
|
| Amount: | $400 million
|
| Maturity: | March 9, 2022
|
| Coupon: | Libor plus 95 bps
|
| Price: | Par
|
| Yield: | Libor plus 95 bps
|
| Call: | Redeemable at par after Feb. 9, 2022
|
|
|
| Five-year fixed-rate notes
|
| Amount: | $850 million
|
| Maturity: | March 9, 2022
|
| Coupon: | 3.05%
|
| Price: | 99.936
|
| Yield: | 3.064%
|
| Spread: | Treasuries plus 105 bps
|
| Call: | Redeemable at par after Feb. 9, 2022
|
|
|
| 10-year fixed-rate notes
|
| Amount: | $750 million
|
| Maturity: | March 9, 2027
|
| Coupon: | 3.75%
|
| Price: | 99.694
|
| Yield: | 3.787%
|
| Spread: | Treasuries plus 130 bps
|
| Call: | Redeemable at par after Feb. 9, 2027
|
|
|
|
|
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