8-KOther EventsExhibits & Filings

CAPITAL ONE FINANCIAL CORP 8-K Report, Corporate Update (Nov 2, 2021)

Filed November 2, 2021For Securities:COFCOF-PLCOF-PICOF-PKCOF-PNCOF-PJ

Summary

Capital One Financial Corporation (COF) announced the successful closing of a public offering of senior notes on November 2, 2021. The offering consisted of $1.25 billion in aggregate principal amount of 1.878% Fixed-to-Floating Rate Senior Notes due 2027 and $500 million in aggregate principal amount of 2.618% Fixed-to-Floating Rate Senior Notes due 2032, totaling $1.75 billion in new debt issuance. These notes were issued under an existing Senior Indenture and a new Supplemental Indenture. The proceeds from this offering provide Capital One with additional capital, which can be utilized for general corporate purposes, potentially strengthening its balance sheet and supporting future growth initiatives. Investors should note the fixed-to-floating rate structure, which implies interest payments will adjust after an initial fixed period.

Key Highlights

  • 1Capital One Financial Corporation closed a public offering of senior notes on November 2, 2021.
  • 2The offering raised a total of $1.75 billion through the issuance of two tranches of notes.
  • 3The 2027 Notes carry a fixed interest rate of 1.878% until they become floating rate.
  • 4The 2032 Notes carry a fixed interest rate of 2.618% until they become floating rate.
  • 5The notes were issued under an underwriting agreement with a syndicate of major financial institutions.
  • 6The issuance is registered under the Securities Act of 1933 via a Form S-3 registration statement.
  • 7This action provides Capital One with additional funding for general corporate purposes.

Frequently Asked Questions

Capital One raised a total of $1.75 billion from the public offering of its senior notes. This amount is comprised of $1.25 billion in 2027 Notes and $500 million in 2032 Notes.

The company issued $1.25 billion of 1.878% Fixed-to-Floating Rate Senior Notes due 2027 and $500 million of 2.618% Fixed-to-Floating Rate Senior Notes due 2032. These notes have an initial fixed rate period before converting to a floating rate.

The proceeds from the offering are intended for general corporate purposes, which may include supporting the company's business activities, investments, or strengthening its capital position.

The 'Fixed-to-Floating Rate' designation means that the notes will initially pay a fixed interest rate for a certain period. After this initial period, the interest rate will adjust periodically based on a benchmark floating rate, such as SOFR (Secured Overnight Financing Rate).