Capital One talks series B fixed-rate noncumulative perpetual preferred stock around 6%

By Stephanie N. Rotondo

Phoenix, Aug. 13 - Capital One Financial Corp. will sell series B fixed-rate noncumulative perpetual preferred stock, according to a prospectus filed with the Securities and Exchange Commission on Monday.

A trader said the issue is being talked around 6%.

The preferreds will be issued as depositary shares representing a 1/40th of an interest in each preferred security.

When declared, dividends will be payable on the first day of March, June, September and December. The first payment, if declared, will be made on Dec. 1.

The preferreds can be redeemed in whole or in part on or after Sept. 1, 2017 at par plus interest, or in whole within 90 days of a regulatory capital treatment event.

Capital One will apply to list the new series of preferreds on the New York Stock Exchange under the ticker symbol "COFPP."

Bank of America Merrill Lynch, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, UBS Securities LLC and Wells Fargo Securities LLC are the joint bookrunners.

Proceeds will be used for general corporate purposes, including a possible redemption of certain trust preferreds.

Capital One is a McLean, Va.-based financial institution.

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