Capital One sells preferreds; Scorpio Tankers plans baby bonds; Del Monte offering eyed

By Christine Van Dusen and Stephanie N. Rotondo

Atlanta, Oct. 28 – Capital One Financial Corp. sold new preferred stock on a Tuesday that saw other signs of life in the primary market.

In its new issue, Virginia-based Capital One sold $500 million of series D fixed-rate noncumulative perpetual preferred stock at 6.7%, a market source said.

Price talk was set in the 6.875% area, according to a trader.

BofA Merrill Lynch, Morgan Stanley & Co. LLC, UBS Securities LLC, Wells Fargo Securities LLC and J.P. Morgan Securities LLC were the joint bookrunning managers for the Securities and Exchange Commission-registered deal.

Proceeds will be used for general corporate purposes.

Meanwhile, Scorpio Tankers Inc. is planning an unusual offering of $25 million $25-par senior unsecured notes due 2017.

Price talk for the baby bonds – which market sources say typically carry longer maturities – is about 7.5%. Stifel, Nicolaus & Co. Inc., Jefferies Inc., Credit Suisse Securities (USA) LLC and Janney Montgomery Scott LLC are running the books.

Pricing is expected Wednesday.

A trader said there was “no selling group” and added that he had not seen any gray markets for paper.

Looking ahead, Del Monte Pacific Ltd. is said to be planning a $360 million sale of $10.00 preferreds, the proceeds of which will be used for debt refinancing.

Price talk on that deal –slated for early December – is 5.25% to 7%.

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