Capital One sells upsized $25-par preferreds; NuStar gets temporary ticker; AXIS to list

By Stephanie N. Rotondo.

Seattle, Nov. 21 – Rumors of a new preferred stock issue during the shortened holiday week proved true on Monday as Capital One Financial Corp. announced an offering of series H noncumulative perpetual preferreds.

The McLean, Va.-based financial services company launched the deal at $200 million, with price talk around 6.125%. It came upsized at $500 million and priced at par to yield 6%.

BofA Merrill Lynch, J.P. Morgan Securities LLC, UBS Securities LLC, Morgan Stanley & Co. LLC and Wells Fargo Securities LLC ran the books.

At the end of the session, a market source saw the issue at $24.75.

From last week’s business, NuStar Energy LP’s $200 million of 8.5% series A fixed-to-floating rate cumulative redeemable perpetual preferred units were seen at $24.90 bid, with no right side at mid-morning.

However, the issue eventually traded up to par, which was a gain of 13 cents on the day.

The deal came Thursday, upsized from $100 million and in line with price talk. The units begin to float on Dec. 15, 2021 at Libor plus 676.6 basis points. The issue freed to trade Friday afternoon.

The units are trading under a temporary symbol, “NTSRF.”

Wells Fargo, BofA Merrill Lynch and UBS Securities were the bookrunners.

Meanwhile, a market source said AXIS Capital Holdings Ltd.’s $550 million of 5.5% series E noncumulative preferred shares will begin trading on the New York Stock Exchange on Tuesday.

The ticker symbol will be “AXSPE.”

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