Summary
Capital One Financial Corporation (COF) has announced its intention to redeem all outstanding shares of its 6.125% Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock, Series P, and its corresponding depositary shares. This action is expected to occur on June 30, 2025, at a redemption price of $1,000 per depositary share. This move suggests Capital One is likely optimizing its capital structure, potentially by replacing this series of preferred stock with instruments carrying a lower cost of capital or by reducing its overall preferred equity. Investors holding these Series P Depositary Shares will receive the redemption price plus accrued, undeclared dividends up to the redemption date.
Key Highlights
- 1Capital One is redeeming all outstanding Series P Preferred Stock and Series P Depositary Shares.
- 2The redemption date is set for June 30, 2025.
- 3The redemption price for each Series P Depositary Share is $1,000.
- 4Investors will also receive any accrued but undeclared dividends up to the redemption date.
- 5This action affects all 500,000 outstanding Series P Depositary Shares.
- 6The company issued a press release on June 25, 2025, announcing the redemption.
Frequently Asked Questions
Capital One is redeeming all of its 6.125% Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock, Series P, and the related depositary shares.
The redemption is scheduled to occur on June 30, 2025.
Holders of Series P Depositary Shares will receive $1,000 per share, plus any dividends that have accrued but have not yet been declared or paid from March 23, 2025, up to, but not including, June 30, 2025.
While the filing does not explicitly state the reason, this type of action is typically taken by companies to manage their capital structure, potentially to reduce financing costs if market rates are lower, or to deleverage their balance sheet. It may indicate confidence in their financial position and a strategic move to optimize their capital stack.