Capital One Financial (COF) will be selling a new Fixed Rate Reset perpetual preferred with a liquidation preference of $1,000/share.
The issue is non-cumulative, qualified and split investment grade.
As many of you know a Fixed Rate Reset preferred typically has a fixed rate for about 5 years and then is adjusted in the 5th year and every 5 years thereafter. The reset rate is determined by a ‘spread’ plus the 5 year treasury rate.
COF has numerous outstanding preferred issues, but none are currently redeemable.
The preliminary prospectus can be read here.
priced at 3.95% with reset FVX + 3.157%
https://investor.capitalone.com/static-files/f9594856-c623-4b8f-a522-f7d6a310461c
COF has one other institutional preferred outstanding, but it was issued 6 years ago and now floats off 3mL and is yielding 3.77%.
COF has 2 exchange traded issues that become callable in December, so you may want to watch the prices on the carefully.
What has been the spread rate on the last issues of COF?
Thx
no planned exchange listing