By Cristal Cody
Tupelo, Miss., April 26 – Capital One Financial Corp. priced $2 billion of senior notes (Baa1/BBB/A-) in two tranches at guidance on Thursday, according to a market source and an FWP filing with the Securities and Exchange Commission.
Capital One sold $1.25 billion of 3.45% three-year notes at 99.912 to yield 3.481%, or a spread of Treasuries plus 85 basis points.
The company placed $750 million of 4.25% seven-year notes at 99.994 to yield 4.251%. The notes priced with a Treasuries plus 130 bps spread.
The deal had a final book size of $3.75 billion.
J.P. Morgan Securities LLC, BofA Merrill Lynch, Morgan Stanley & Co. LLC, RBC Capital Markets, LLC and Capital One Securities Inc. were the bookrunners.
Proceeds will be used for general corporate purposes, which may include debt repayment, common stock or other securities redemptions and repurchases, acquisitions, working capital, capital expenditures and investments.
Capital One is a McLean, Va.-based financial services company.
| Issuer: | Capital One Financial Corp.
|
| Amount: | $2 billion
|
| Description: | Senior notes
|
| Bookrunners: | J.P. Morgan Securities LLC, BofA Merrill Lynch, Morgan Stanley & Co. LLC, RBC Capital Markets, LLC and Capital One Securities Inc.
|
| Co-managers: | CastleOak Securities, LP, Samuel A. Ramirez & Co., Inc., Mischler Financial Group, Inc. and Blaylock Van, LLC
|
| Trade date: | April 26
|
| Settlement date: | April 30
|
| Ratings: | Moody’s: Baa1
|
| S&P: BBB
|
| Fitch: A-
|
| Distribution: | SEC registered
|
|
|
| Three-year notes
|
| Amount: | $1.25 billion
|
| Maturity: | April 30, 2021
|
| Coupon: | 3.45%
|
| Price: | 99.912
|
| Yield: | 3.481%
|
| Spread: | Treasuries plus 85 bps
|
| Call feature: | On or after March 30, 2021 at par
|
| Price guidance: | Treasuries plus 85 bps
|
|
|
| Seven-year notes
|
| Amount: | $750 million
|
| Maturity: | April 30, 2025
|
| Coupon: | 4.25%
|
| Price: | 99.994
|
| Yield: | 4.251%
|
| Spread: | Treasuries plus 130 bps
|
| Call feature: | On or after March 30, 2025 at par
|
| Price guidance: | Treasuries plus 130 bps
|
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