The Treasury Department announced Tuesday that it would begin selling its warrants for stock in Capital One Financial Corp. on Thursday.
The auction is to cover 12,657,960 warrants to buy stock in Capital One. "The proceeds of this sale will provide an additional return to the American taxpayer from Treasury's investment in the company beyond the dividend payments it received on the related preferred stock," the Treasury said in a press release.
Deutsche Bank Securities Inc. is the offering's sole book-running manager, and Siebert Capital Markets is its co-manager.
The sale is a part of a modified Dutch auction planned this month of the warrants the Treasury holds from TCF Financial Corp., JPMorgan Chase & Co. and Capital One. All three have repaid their shares of the combined $28.9 billion in bailout money they got last year, but they opted not to repurchase their warrants when negotiations with the government fell through.
Capital One go more than $3.5 billion from the Troubled Asset Relief Program last year.