Capital One Bank begins exchange offer for $1.5 billion of 8.8% notes

By Susanna Moon

Chicago, Jan. 23 - Capital One Financial Corp. said its subsidiary Capital One Bank (USA) NA began an exchange offer for its outstanding $1.5 billion 8.8% subordinated notes due 2019.

In exchange for tendered notes, the company is offering a combination of new subordinated notes due 2023 and cash, according to a company press release.

The exchange offer is conditioned on the company issuing at least $500 million principal amount of new notes in exchange for tendered notes.

Holders who tender their notes for exchange by the early tender deadline at 5 p.m. ET on Feb. 5 will receive an early exchange premium of $30.00 per $1,000 principal amount of notes.

The exchange offer will end at 11:59 p.m. ET on Feb. 20.

Tendered notes may be withdrawn by the early tender date.

Credit Suisse Securities (USA) LLC (800 820-1653 or collect 212 538-2147) and Deutsche Bank Securities Inc. (855 287-1922 or collect 212 250-7527) are the lead dealer managers. D.F. King & Co., Inc. (800 290-6427 or for banks and brokers 212 269-5550) is the information agent.

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

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