Summary
Capital One Financial Corporation (COF) has announced its intention to redeem all outstanding shares of its Series C and Series D Fixed Rate Non-Cumulative Perpetual Preferred Stock, along with their corresponding depositary shares. This significant action involves 20 million Series C depositary shares and 20 million Series D depositary shares, each being redeemed at a price of $25 per depositary share (equivalent to $1,000 per share of preferred stock). The redemption is scheduled to occur on the dividend payment date of December 2, 2019. This redemption signals a strategic move by Capital One, likely aimed at optimizing its capital structure or reducing future dividend obligations. Investors holding these specific preferred securities should note that regular dividends will be paid up to November 15, 2019, but will cease to accrue on or after the redemption date of December 2, 2019. This event is important for preferred stockholders as it marks the end of their investment in these particular securities at a predetermined price.
Key Highlights
- 1Capital One is redeeming all outstanding Series C and Series D Perpetual Preferred Stock and Depositary Shares.
- 2The redemption price is set at $25 per depositary share, or $1,000 per share of preferred stock.
- 3A total of 40 million depositary shares (20 million Series C and 20 million Series D) are being redeemed.
- 4The redemption date is set for December 2, 2019.
- 5Regular dividends will be paid to holders of record as of November 15, 2019.
- 6Dividends will cease to accrue on the Series C and Series D Preferred Stock on and after December 2, 2019.
- 7The announcement was made via a press release filed on October 21, 2019.