Morning Commentary: Capital One announces offering, price talk revised; market starts off firm

By Stephanie N. Rotondo

Phoenix, June 9 – A preferred stock trader said he was expecting the new issue calendar to build up this week.

“I hear there’s going to be two to three more deals this week,” he said.

That was in addition to the offering of series C fixed-rate noncumulative perpetual preferreds announced by Capital One Financial Corp. on Monday.

The McLean, Va.-based company said it would sell at least $250 million of the preferreds, which were initially being talked in the 6.375% to 6.5% area. Talk was then revised to 6.25% to 6.375%.

The trader saw a less 12-cent bid, less 5-cent offer in the early gray market.

BofA Merrill Lynch, J.P. Morgan Securities LLC, UBS Securities LLC, Wells Fargo Securities LLC and Morgan Stanley & Co. LLC are the joint bookrunning managers.

Overall, the market was getting off to a firm start, as the Wells Fargo Hybrid and Preferred Securities index was up 6 basis points as of mid-morning.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.