MCLEAN, Va., May 8, 2018 /PRNewswire/ -- Capital One Financial
Corporation (NYSE: COF) today announced the sale of approximately
$17 Billion of first and second lien
mortgages to DLJ Mortgage Capital, Inc., a subsidiary of Credit
Suisse AG. The company expects to complete the transaction
and record a gain in the second quarter of 2018. The company had
previously announced that it ceased new originations of residential
mortgages and home equity loan products.
As a result of the portfolio sale, the company now expects to
resume repurchasing shares of common stock through the end of the
second quarter of 2018 under its existing board authorization.
"Strong market demand enabled us to negotiate and sign this
complex transaction more quickly than we thought possible," said R.
Scott Blackley, Chief Financial
Officer of Capital One.
The timing and exact amount of any Capital One common stock
repurchases will depend on various factors, including market
conditions, opportunities for growth, and the company's capital
position and amount of retained earnings. Capital One's share
repurchase program does not include specific price targets, may be
executed through open market purchases or privately negotiated
transactions, including utilizing Rule 10b5-1 programs, and may be
suspended at any time.
Wells Fargo Securities, LLC and Morgan Stanley & Co., LLC
acted as financial advisors to Capital One on the transaction.
Wachtell, Lipton, Rosen & Katz acted as legal advisor to
Capital One on the transaction.
Forward-Looking Statements
Certain statements in this
release may constitute forward-looking statements, which involve a
number of risks and uncertainties. Capital One cautions readers
that any forward-looking information is not a guarantee of future
performance and that actual results could differ materially from
those contained in the forward-looking information due to a number
of factors, including those listed from time to time in reports
that Capital One files with the Securities and Exchange Commission,
including, but not limited to, the Annual Report on Form 10-K for
the year ended December 31, 2017.
About Capital One
Capital One Financial Corporation
(www.capitalone.com) is a financial holding company whose
subsidiaries, which include Capital One, N.A., and Capital One Bank
(USA), N.A., had $250.8 billion in deposits and $362.9 billion in total assets as of March 31, 2018. Headquartered in McLean, Virginia, Capital One offers a broad
spectrum of financial products and services to consumers, small
businesses and commercial clients through a variety of channels.
Capital One, N.A. has branches located primarily in New York, Louisiana, Texas, Maryland, Virginia, New
Jersey and the District of
Columbia. A Fortune 500 company, Capital One trades on the
New York Stock Exchange under the symbol "COF" and is included in
the S&P 100 index.
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SOURCE Capital One Financial Corporation