By Aleesia Forni
Virginia Beach, April 21 - Capital One Financial Corp. priced $1.5 billion of senior notes (Baa1/BBB/A-) in tranches due 2019 and 2024, according to a market source.
The sale included $750 million of 2.45% five-year notes at 99.925 to yield 2.466%, or Treasuries plus 75 basis points.
Pricing was at the tight end of the Treasuries plus 80 bps area talk, which had tightened from Treasuries plus 90 bps area.
A second tranche was $750 million of 3.75% notes due 2024, which sold with a spread of Treasuries plus 105 bps.
Pricing was at 99.909 to yield 3.761%.
The notes sold at the tight end of talk, which was set in the area of Treasuries plus 110 bps, around 5 bps tighter compared to initial guidance.
The bookrunners were Credit Suisse Securities (USA) LLC, Goldman Sachs & Co., J.P. Morgan Securities LLC and Wells Fargo Securities LLC.
Proceeds will be used for general corporate purposes, including the repayment of debt, acquisitions, additions to working capital, capital expenditures and investments in its subsidiaries.
The financial services company is based in McLean, Va.
| Issuer: | Capital One Financial Corp.
|
| Issue: | Senior notes
|
| Amount: | $1.5 billion
|
| Joint bookrunners: | Credit Suisse Securities (USA) LLC, Goldman Sachs & Co., J.P. Morgan Securities LLC, Wells Fargo Securities LLC
|
| Trade date: | April 21
|
| Settlement date: | April 24
|
| Ratings: | Moody's: Baa1
|
| Standard & Poor's: BBB
|
|
|
| Five-year notes
|
| Amount: | $750 million
|
| Maturity: | April 24, 2019
|
| Coupon: | 2.45%
|
| Price: | 99.925
|
| Yield: | 2.466%
|
| Spread: | Treasuries plus 75 bps
|
| Price talk: | Treasuries plus 80 bps area, tightened from Treasuries plus 90 bps area
|
|
|
| Notes due 2024
|
| Amount: | $750 million
|
| Maturity: | April 24, 2024
|
| Coupon: | 3.75%
|
| Price: | 99.909
|
| Yield: | 3.761%
|
| Spread: | Treasuries plus 105 bps area
|
| Price talk: | Treasuries plus 110 bps area, tightened from Treasuries plus 115 bps area
|
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