Capital One Offers $500 Million Credit Card Deal - Source
03 Juni 2009 - 10:32PM
Dow Jones News
Capital One Financial (COF) is offering a $500 million credit
card loan-backed deal that is not eligible for a Federal Reserve
program.
The deal, led by Deutsche Bank and RBS, has price guidance of
110 basis points over one-month London interbank offered rate, or
Libor, and is due to price later this week, according to a person
familiar with the matter.
The bond is not eligible for funding under the Fed's Term
Asset-Backed Securities Loan Facility, or TALF, which offers
investors cheap loans to buy newly created, highly rated consumer
loan-backed deals.
The Fed's facility has helped boost the issuance of such
securities and more than $40 billion of such bonds have emerged so
far this year.
The asset-backed securities market had been hibernating through
the credit crisis until the Fed stepped in with cheap money for
investors.
-By Anusha Shrivastava, Dow Jones Newswires; 201-938-2371; anusha.shrivastava@dowjones.com