WASHINGTON - The Treasury Department said yesterday it received $146.5 million for the warrants of Capital One Financial Corp. in the first auction of the warrants the government received as part of the $700 billion financial system bailout.
The auction resulted in a price of $11.75 per warrant. Warrants are financial instruments that allow the holder to buy stock in the future at a fixed price.
Each warrant gives the owner the right to purchase one share of Capital One stock at a price of $42.13. The warrants will expire on Nov. 14, 2018. Capital One stock closed trading yesterday at $37.92.
The government had received nearly 12.7 million warrants in return for providing Capital One $3.56 billion in support from the financial rescue fund in November 2008 at the height of the financial crisis.