What happened to Capital One's Series C and Series D Preferred Stock?

Capital One Financial Corporation has officially removed its Series C and Series D Fixed Rate Non-Cumulative Perpetual Preferred Stock from its corporate charter. This was done after all outstanding shares of both series were redeemed on December 2, 2019.

Why did Capital One redeem these preferred stocks?

The filing itself does not explicitly state the reasons for the redemption. However, such actions are typically taken to optimize the company's capital structure, reduce ongoing dividend expenses, or simplify its financial obligations.

What is the impact on common shareholders?

For common shareholders, the redemption of preferred stock generally has a positive impact as it reduces the company's fixed dividend obligations. This can free up more earnings for reinvestment or distribution to common shareholders, and can also improve key financial ratios.

Where can I find more details about this action?

The details of this action are documented in the filed 8-K Current Report. Specifically, Exhibits 3.1 and 3.2 contain the Certificates of Elimination for the Series C and Series D Preferred Stock, respectively.

CAPITAL ONE FINANCIAL CORP 8-K: Corporate Changes

Summary

Capital One Financial Corporation (COF) has filed an 8-K report detailing the elimination of its Series C and Series D Fixed Rate Non-Cumulative Perpetual Preferred Stock from its Restated Certificate of Incorporation. This action was taken following the redemption of all outstanding shares of both Series C and Series D preferred stock on December 2, 2019. For investors, this filing signifies the full retirement of these specific preferred stock series. This move can impact the company's capital structure, potentially reducing dividend obligations and simplifying its outstanding share classes. Investors holding these specific preferred stocks would have received their redemption value, and this filing confirms the formal removal of these securities from Capital One's corporate charter.

Key Highlights

1Capital One Financial Corporation (COF) formally eliminated Series C and Series D Fixed Rate Non-Cumulative Perpetual Preferred Stock from its Restated Certificate of Incorporation.
2All outstanding shares of Series C Preferred Stock were redeemed on December 2, 2019.
3All outstanding shares of Series D Preferred Stock were redeemed on December 2, 2019.
4The filing includes Certificates of Elimination as exhibits, confirming the removal of these preferred stock designations.
5This action simplifies Capital One's capital structure by retiring these specific preferred stock series.
6The event date for these actions was December 1, 2019, with the filing occurring on December 2, 2019.

CAPITAL ONE FINANCIAL CORP 8-K Report, Bylaw Amendment (Dec 3, 2019)

Summary

Key Highlights

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