By Aleesia Forni
Virginia Beach, May 27 – PNC Bank priced $3 billion of senior bank notes (A2/A/A+) on Wednesday in four tranches due 2018, 2020 and 2025, an informed source said.
The bank sold a $1.3 billion 1.6% three-year note with a spread of Treasuries plus 65 basis points.
The notes sold at 99.933 to yield 1.623%.
Price guidance was set in the Treasuries plus 65 bps to 67 bps range.
There was also a $550 million three-year floating-rate note priced at par to yield Libor plus 42 bps.
The tranche was talked at the Libor equivalent to the two-year notes.
Also, $750 million of 2.3% five-year notes sold at 99.77 to yield 2.349% with a spread of Treasuries plus 83 bps.
The notes sold at the tight end of guidance set in the range of Treasuries plus 83 bps to 85 bps.
Finally, there was a $400 million 3.25% 10-year note priced at Treasuries plus 115 bps.
The notes sold at 99.778 to yield 3.275%.
Pricing was at the wide end of guidance set in the 110 bps to 115 bps range over Treasuries.
Bookrunners for the offering were Barclays, Citigroup Global Market Inc., Morgan Stanley & Co. LLC and PNC Capital Markets.
Proceeds will be used for general corporate purposes.
PNC is a Pittsburgh-based bank and holding company.
| Issuer: | PNC Bank
|
| Issue: | Senior bank notes
|
| Amount: | $3 billion
|
| Bookrunners: | Barclays, Citigroup Global Market Inc., Morgan Stanley & Co. LLC, PNC Capital Markets
|
| Trade date: | May 27
|
| Settlement date: | June 1
|
| Ratings: | Moody’s: A2
|
| Standard & Poor’s: A
|
| Fitch: A+
|
|
|
| Three-year notes
|
| Amount: | $1.3 billion
|
| Maturity: | June 1, 2018
|
| Coupon: | 1.6%
|
| Price: | 99.933
|
| Yield: | 1.623%
|
| Spread: | Treasuries plus 65 bps
|
| Price guidance: | Treasuries plus 65 bps to 67 bps
|
|
|
| Three-year floaters
|
| Amount: | $550 million
|
| Maturity: | June 1, 2018
|
| Coupon: | Libor plus 42 bps
|
| Price: | Par
|
| Yield: | Libor plus 42 bps
|
| Price guidance: | Libor equivalent
|
|
|
| Five-year notes
|
| Amount: | $750 million
|
| Maturity: | June 1, 2020
|
| Coupon: | 2.3%
|
| Price: | 99.77
|
| Yield: | 2.349%
|
| Spread: | Treasuries plus 83 bps
|
| Price guidance: | Treasuries plus 83 bps to 85 bps
|
|
|
| 10-year notes
|
| Amount: | $400 million
|
| Maturity: | June 1, 2025
|
| Coupon: | 3.25%
|
| Price: | 99.778
|
| Yield: | 3.275%
|
| Spread: | Treasuries plus 115 bps
|
| Price guidance: | Treasuries plus 110 bps to 115 bps
|
|
|
|
|
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