Capital One Financial has priced a public offering of 56 million shares of its common stock at a public offering price per share of $27.75.
According to the company, it will grant the underwriters a 30-day option to purchase up to 8.4 million additional shares of common stock.
Net proceeds of the offering are expected to be used for general corporate purposes and, subject to regulatory approval, for the repurchase of the preferred stock and warrants issued and sold, in each case, to the US Treasury as part of the troubled asset relief program’s capital purchase program.
Furthermore it said that general corporate purposes may include repayment of debt, acquisitions, additions to working capital, capital expenditures and investments in the company’s subsidiaries. Net proceeds may be temporarily invested prior to deployment for the company’s intended purposes. The sole book-runner and manager for the offering was Barclays Capital.
Capital One Financial Corporation is a financial holding company whose subsidiaries, which include Capital One N.A., Capital One Bank (USA), N.A., and Chevy Chase Bank, F.S.B., collectively had $121 billion in deposits and $150 billion in managed loans outstanding as of March 31, 2009. Headquartered in McLean, Virginia, Capital One offers a broad spectrum of financial products and services to consumers, small businesses and commercial clients.
