MCLEAN, Va., Feb. 19, 2013 /PRNewswire/ -- Capital One
Financial Corporation (NYSE: COF) today announced that it has
reached an agreement to sell the portfolio of Best Buy private
label and co-branded credit card accounts, with current loan
balances of approximately $7 billion,
to Citi. In addition, Capital One and Best Buy have agreed to
end their contractual credit card relationship early.
The sale of the loans to Citi, which is subject to customary
closing conditions, and early termination of the Best Buy
partnership are expected to be finalized in the third quarter of
2013. Upon closing, Capital One expects that the proceeds
from the sale will approximate the book value of the accounts,
resulting in no significant gain or loss on the
transaction.
"We have a proven, scale partnerships infrastructure and a great
portfolio of partners," said Capital One's Bill Cilluffo, EVP, Card Partnerships.
"Our partnerships business continues to deliver strong
contributions to our results and serves as a platform for future
growth potential."
Forward Looking Statements
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act giving
Capital One's expectations or predictions of future financial or
business performance or conditions. Such forward-looking
statements include, but are not limited to, statements about the
projected impact and benefits of the transactions described in this
press release, including future financial and operating results,
timing of closing, the company's plans, objectives, expectations
and intentions and other statements that are not historical facts.
These forward-looking statements are subject to numerous
assumptions, risks and uncertainties which change over time.
Factors previously disclosed in our filings with the U.S.
Securities and Exchange Commission (the "SEC") could cause actual
results to differ materially from forward-looking statements or
historical performance. Forward-looking statements speak only
as of the date they are made, and Capital One assumes no duty to
update forward-looking statements.
In addition to the factors previously disclosed in Capital One's
filings with the SEC, the following factors, among others, could
cause actual results to differ materially from forward-looking
statements or historical performance: the possibility that
conditions to the transactions are not received or satisfied on a
timely basis or at all; the possibility that modifications to the
terms of the transactions may be required in order to obtain or
satisfy such conditions; and changes in the anticipated timing for
closing the transactions.
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 $212.5
billion in deposits and $312.9
billion in total assets outstanding as of December 31, 2012. 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 more than 900 branch locations primarily in
New York, New Jersey, Texas, Louisiana, Maryland, Virginia 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.
SOURCE Capital One Financial Corporation