- Innovative marketing strategy in the asset-backed market as broker-dealer is appointed D&I Coordinator on an ABS transaction for only the second time ever
- Diverse-owned firms serve as active co-managers contributing to distribution
- $3.0bn combined offering represents Capital One’s first ABS offering since February 2020 and the first issuance from its Capital One Multi-asset Execution Trust credit card shelf since 2019
New York, August 23, 2021 — On July 22, Capital One Financial Corporation (NYSE: COF), RBC Capital Markets, LLC (RBC), Academy Securities (Academy), R. Seelaus & Co., LLC (Seelaus) and Siebert Williams Shank (Siebert Williams), announced the closing of Capital One’s combined $3.0 billion asset-backed securities (ABS) issuance through Capital One Multi-asset Execution Trust, Class A 2021-1 and 2021-2 card series notes.
RBC, a joint bookrunner on the transaction, also served as Diversity & Inclusion Coordinator on the offering, with Academy, Seelaus, and Siebert Williams as co-managers. This deal is a landmark one in the asset-backed market, as it represents the first time a broker-dealer has been appointed Diversity & Inclusion Coordinator on a credit card ABS transaction.
A few months ago, RBC also served as Diversity & Inclusion Coordinator on a landmark transaction with Verizon and together with this deal with Capital One, marks the only two times this has been seen on the ABS market, with the Capital One transaction being the first ever credit card asset backed deal.
In keeping with their commitment to diversity & inclusion, RBC and Capital One worked together to develop a syndication structure with the aim of advancing the equality of opportunity in the ABS market for diverse-owned firms. The three diverse-owned firms were rewarded with greater transaction economics, a significantly enhanced opportunity to place ABS securities with investors, and the ability to more meaningfully contribute to the transaction’s success than is typical in most credit card ABS offerings. The cooperation and coordination between RBC and the diverse-owned dealers gave each firm a platform to better demonstrate their structured finance distribution capabilities.
“RBC is thrilled to have worked with Capital One and the three diverse-owned firms, Academy, Seelaus and Siebert, within a new set of syndicate protocols for credit card ABS offerings. Forward thinking approaches like this help make progress toward our collective goal of creating greater social equity in the capital markets,” said Keith Helwig, Managing Director at RBC. “The transaction demonstrates RBC’s leadership in the ABS market in this regard and further reinforces RBC’s enterprise-wide commitment to diversity and inclusion across the broader capital markets.”
“We applaud Capital One and RBC for taking a leadership role in including diverse and women-owned firms in their recent ABS transaction at an elevated level, and for recognizing that true advancement for underrepresented groups comes only with inclusion in all markets activity. As an organization they have succeeded in increasing the opportunity set for all, and Seelaus is honored to have been a part of this successful and ground-breaking transaction that has allowed us to connect with more clients in the ABS market and continue to build our product capabilities.” Annie Seelaus, CEO, R. Seelaus & Co., LLC.
“The opportunity that Capital One and RBC has provided Academy Securities to perform on its transactions helps us to reinvest by hiring worthy and talented transitioning military veterans to our team. This business facilitates our effort in building the career equity of our fellow veterans and contributes to our success in adding value to our clients. We are honored to share our social mission to mentor, hire, and train veterans with the Capital One team, and look forward to the continued growth of our partnership in the capital markets. Academy Securities is grateful to have supported the most recent COMET transaction and delivering our complementary capabilities.” – Chance Mims, CEO and Chairman, Academy Securities.
"The Capital One relationship is longstanding and extremely important to all of us at Siebert", noted Arion Williams, corporate finance senior vice president, Siebert Williams. "Capital One has been instrumental in creating opportunities for us to demonstrate our investor reach and build our track record on both ABS and unsecured mandates. Our active involvement on this latest COMET securitization is a continuation of their efforts to help us grow and play a more active role in the securitization process, and for this we are very grateful."
“At Capital One, we embrace all dimensions of diversity and we’re building an inclusive workforce that reflects the customers and communities we serve,” said Meghan Welch, Capital One’s Chief Diversity, Inclusion & Belonging Officer. “We strive to embed diversity, inclusion and belonging into everything we do - every business practice and corporate priority. We will continue to partner with RBC, Academy, Seelaus, Siebert, and others in the industry to be an advocate for positive change.”
Also serving as joint bookrunners on the transaction were JPM Morgan and Wells Fargo. Capital One Securities was a co-manager in addition to the diverse-owned firms.
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Notes to editors
For media enquiries please contact:
Chloe Brooke
RBC Capital Markets
T: +447795 956 386
E: chloe.brooke@rbccm.com
About RBC
Royal Bank of Canada is a global financial institution with a purpose-driven, principles-led approach to delivering leading performance. Our success comes from the 86,000+ employees who bring our vision, values and strategy to life so we can help our clients thrive and communities prosper. As Canada’s biggest bank, and one of the largest in the world based on market capitalization, we have a diversified business model with a focus on innovation and providing exceptional experiences to more than 16 million clients in Canada, the U.S. and 34 other countries. Learn more at rbc.com.
We are proud to support a broad range of community initiatives through donations, community investments and employee volunteer activities. See how at rbc.com/community-sustainability.
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 $306.3 billion in deposits and $423.4 billion in total assets as of June 30, 2021. 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.
About Academy Securities
Academy Securities is our nation's first Post-9/11 veteran and disabled veteran owned and operated investment bank with strength in capital markets, public finance, fixed income and equity trading. Academy leverages intensive past Military training, in depth current financial experience, geopolitical knowledge and broad networks. Mission-driven teams bring out the best in each other for the benefit of our clients.
About Seelaus
R. Seelaus & Company, founded in 1984, is a full service, women-owned broker dealer offering a variety of primary and secondary market services in the financial markets. Our broad and deep distribution focused platform, from high net worth individuals to large Central Banks is a core strength of our business. The firm’s mission is to build a strong, women-owned women-led company that can increase opportunities for women in finance and support organizations in our community that share our vision. More information about Seelaus can be found at www.rseelaus.com.
About Siebert Williams
Siebert Williams Shank & Co., LLC (SWS) is a leading independent non-bank financial services firm that offers investment banking, sales and trading, research, advisory, and asset management services. It is the only U.S. investment bank certified as both a minority-owned and women-owned enterprise. It is co-headquartered in New York City and Oakland, Calif., with over 20 offices nationwide.