By Cristal Cody
Tupelo, Miss., Jan. 23 – Capital One Bank (USA) NA (Baa1/BBB+/A-) priced $2 billion of fixed-to-floating rate notes in two parts on Thursday, according to a market source.
A $1.25 billion tranche of 2.014% three-year notes priced at a Treasuries plus 50 basis points spread.
The notes were initially talked to price with a spread in the Treasuries plus 65 bps area.
The rate will reset to a floating rate of SOFR plus 61.6 bps after the initial fixed-rate period.
Capital One sold $750 million of 2.28% six-year notes with a 73 bps over Treasuries spread.
Initial talk was in the Treasuries plus 90 bps area.
The rate will convert to a floating rate of SOFR plus 91 bps after the initial fixed-rate period.
Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Morgan Stanley & Co. LLC and Goldman Sachs & Co. LLC were the bookrunners.
Capital One Bank is a McLean, Va.-based bank.
| Issuer: | Capital One Bank (USA) NA
|
| Amount: | $2 billion
|
| Description: | Fixed-to-floating rate notes
|
| Bookrunners: | Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Morgan Stanley & Co. LLC and Goldman Sachs & Co. LLC
|
| Trade date: | Jan. 23
|
| Ratings: | Moody’s: Baa1
|
| S&P: BBB+
|
| Fitch: A-
|
|
|
| Three-year notes
|
| Amount: | $1.25 billion
|
| Maturity: | Jan. 27, 2023
|
| Coupon: | 2.014%; resets to SOFR plus 61.6 bps after fixed-rate period
|
| Spread: | Treasuries plus 50 bps
|
| Call feature: | Two years
|
| Price guidance: | Treasuries plus 65 bps area
|
|
|
| Six-year notes
|
| Amount: | $750 million
|
| Maturity: | Jan. 28, 2026
|
| Coupon: | 2.28%; resets to SOFR plus 91 bps after fixed-rate period
|
| Spread: | Treasuries plus 73 bps
|
| Call feature: | Five years
|
| Price guidance: | Treasuries plus 90 bps area
|
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