Capital One priced its Capital One Multi-Asset Execution Trust (COMET) 2013-2 credit card ABS deal to strong investor demand.
The deal’s single tranche offering was upsized yesterday to $700 million from $500 million. The class A notes, with an average life maturity of 2.94 years, rated triple-A by both Standard & Poor’s and Fitch Ratings; priced at 18 basis points over the one month Libor, according to a source familiar with the deal.
It’s turning out to be a good year for the asset class that has seen volumes rise to around $11.1 billion so far this year, in primary issuance, according to S&P.
Capital One trust’s (COMET) net losses are about 50-100bp below the industry average, and S&P said it expects losses to remain stable in 2013, based on the current pool composition.
The deal priced in line with Discover’s late April issue. The single tranche offering of triple-A rated, 2.94 –year, class A notes priced at 18 basis points over the one month Libor.
Citibank was also in the market in late April. The issuer priced its shorter-dated, 1.97-year, triple-A rated, class A notes at 10 basis points over the one month Libor, according to a source familiar with the deal.
Barclays, BofA Merrill Lynch and Citigroup are lead underwriters on the Capital One deal.