By Cristal Cody
Tupelo, Miss., Feb. 20 – PNC Bank, NA priced a $1.5 billion two-part offering of subordinated notes due Feb. 24, 2023 (A2/A-/A+) on Thursday, according to a market source.
The company sold $1 billion of three-year floating-rate notes at Libor plus 32.5 basis points.
A $500 million tranche of 1.743% three-year fixed-to-floating rate notes priced at a spread of Treasuries plus 35 basis points.
The issue was talked to price at the mid-to-high 40 bps over Treasuries area.
The rate will reset to a floating rate of Libor plus 32.3 bps after the initial fixed-rate period.
J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC and PNC Capital Markets LLC were the bookrunners.
PNC Bank is a subsidiary of PNC Financial Services Group, Inc., a Pittsburgh-based financial services holding company.
| Issuer: | PNC Bank, NA
|
| Amount: | $1.5 billion
|
| Description: | Subordinated notes
|
| Bookrunners: | J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC and PNC Capital Markets LLC
|
| Trade date: | Feb. 20
|
| Ratings: | Moody’s: A2
|
| S&P: A-
|
| Fitch: A+
|
|
|
| Three-year floaters
|
| Amount: | $1 billion
|
| Description: | Floating-rate notes
|
| Maturity: | Feb. 24, 2023
|
| Coupon: | Libor plus 32.5 bps
|
| Call feature: | Non-callable two years
|
|
|
| Three-year notes
|
| Amount: | $500 million
|
| Description: | Fixed-to-floating rate notes
|
| Maturity: | Feb. 24, 2023
|
| Coupon: | 1.743%; converts to Libor plus 32.3 bps after initial fixed-rate period
|
| Spread: | Treasuries plus 35 bps
|
| Call feature: | Non-callable two years
|
| Price guidance: | Treasuries plus mid-to-high 40 bps area
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
