By Devika Patel
Knoxville, Tenn., Dec. 2 – Capital One Financial Corp. offered further details, including the coupon terms, about a $1.75 billion sale of notes due Dec. 6, 2024 (Baa1/BBB/A) that priced in two tranches on Thursday, according to an FWP filed with the Securities and Exchange Commission.
The offer was comprised of a floating-rate tranche and a fixed-to-floating rate tranche.
The floating-rate tranche arrived as $1.4 billion of notes with a coupon based on SOFR plus 69 basis points.
The $350 million of fixed-to-floating rate notes priced with a 1.343% initial coupon, or a spread of 72 bps over Treasuries. Pricing came lower than talk in the 90 bps area. The fixed rate resets to a floating rate of 69 bps over SOFR on Dec. 6, 2023.
Both tranches priced at par.
Barclays, Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC, RBC Capital Markets LLC and Capital One Securities Inc. are 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: | $1.75 billion
|
| Issue: | Notes
|
| Maturity: | Dec. 6, 2024
|
| Bookrunners: | Barclays, Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC, RBC Capital Markets LLC and Capital One Securities Inc.
|
| Co-managers: | Academy Securities Inc., R. Seelaus & Co. Inc., Samuel A. Ramirez & Co. Inc. and Siebert Williams Shank & Co. LLC
|
| Call: | At par on Dec. 6, 2023
|
| Trade date: | Dec. 2
|
| Settlement date: | Dec. 6
|
| Ratings: | Moody’s: Baa1
|
| S&P: BBB
|
| Fitch: A
|
| Distribution: | SEC registered
|
|
|
| Floating-rate notes
|
| Amount: | $1.4 billion
|
| Issue: | Floating-rate notes
|
| Coupon: | SOFR plus 69 bps
|
| Price: | Par
|
| Yield: | SOFR plus 69 bps
|
| Cusip: | 14040HCL7
|
|
|
| Fixed-to-floaters
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| Amount: | $350 million
|
| Issue: | Fixed-to-floating rate notes
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| Coupon: | 1.343% initial rate; resets to SOFR plus 69 bps on Dec. 6, 2023
|
| Price: | Par
|
| Spread: | Treasuries plus 72 bps
|
| Price talk: | Treasuries plus 90 bps area
|
| Cusip: | 14040HCK9
|
|
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