Capital One Sells $850 Million of Bonds in Two-Part Transaction

Capital One Financial Corp. (COF), the lender that gets more than half its revenue from credit cards, sold $850 million of bonds in a two-part offering.

The lender’s $250 million of three-year, floating-rate notes yield 45 basis points more than the three-month London interbank offered rate and its $600 million of 1.5 percent, five-year debt has a spread of 82 basis points more than similar-maturity Treasuries, according to data compiled by Bloomberg.

The three-year portion was added after the deal was marketed earlier today, according to a person familiar with the transaction, who asked not to be identified citing lack of authorization to speak publicly. The bonds may be rated A3 by Moody’s Investors Service, the person said.

Capital One’s $1.3 billion of 6.75 percent notes due September 2017 traded at 121.1 cents on the dollar to yield 1.83 percent on March 13, according to Trace, the bond-price reporting system of the Financial Industry Regulatory Authority.

Barclays Plc, Morgan Stanley and Wells Fargo & Co. managed the offering for the McLean, Virginia-based bank, Bloomberg data show.

To contact the reporter on this story: Sarika Gangar in New York at sgangar@bloomberg.net

To contact the editor responsible for this story: Alan Goldstein at agoldstein5@bloomberg.net

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