What are Upper Decs?
The Upper Decs are mandatory convertible debt securities. Each Upper Dec initially consists of and represents (a) a senior note due May 17, 2007 with a principal amount of $50, on which the Company will pay interest quarterly at the initial annual rate of 6.25% and (b) a forward purchase contract pursuant to which the holder has agreed to purchase, for $50, shares of the Company’s stock on May 17, 2005. Capital One’s Upper Decs are traded on the New York Stock Exchange with the symbol COF C.
