Capital One Bank is bringing its first 2016 issue of securitized credit-card receivables in two series of notes totaling $750 million through its Capital One Multi-Asset Execution Trust (or COMET).
In a pair of prospectus documents filed Friday with the Securities and Exchange Commission, Capital One stated it planned to split its new securitization into two series of notes: a $500 million COMET Class A (2016-1) and a $250 million COMET Class A (2016-2) series.
The receivables will be backed mostly by the assets from the Capital One Master Trust with principal receivables of $26.9 billion and finance-charge receivables of $467.5 million as of April 4.
Both series will be eligible to issue notes in up to four classes of notes (A through D), with the Class A notes gaining credit enhancement from the subordination of the junior notes by at least 26.58%.
The notes have yet to be rated.
In Capital One’s previous COMET transaction, the Class A portion of the $500 million in notes issued last October were assigned an ‘AAA’ rating by Ritch ratings. Those notes were enhanced by 21% CE.
The size and maturity of 2016-1 and 2016-2 are to be determined.
RBC Capital Markets, JPMorgan and Wells Fargo are underwriters of both series.