By Cristal Cody
Tupelo, Miss., July 18 – PNC Bank, NA sold $1.5 billion of subordinated notes (A2/A-/A+) in two tranches better than initial talk on Thursday, according to a market source.
The bank sold $900 million of three-year floating-rate notes at par to yield Libor plus 45 basis points.
PNC Bank priced $600 million of 2.232% fixed-to-floating rate notes due July 22, 2022 at a spread of Treasuries plus 48 bps. The notes will convert to a floating rate of Libor plus 44 bps following the initial fixed-rate period.
Goldman Sachs & Co. LLC, 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: | Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC and PNC Capital Markets LLC
|
| Trade date: | July 18
|
| Ratings: | Moody’s: A2
|
| S&P: A-
|
| Fitch: A
|
|
|
| Three-year floaters
|
| Amount: | $900 million
|
| Description: | Floating-rate notes
|
| Maturity: | July 22, 2022
|
| Coupon: | Libor plus 45 bps
|
| Price: | Par
|
| Yield: | Libor plus 45 bps
|
| Call feature: | Non-callable two years
|
| Price guidance: | Libor plus 57 bps area
|
|
|
| Three-year notes
|
| Amount: | $600 million
|
| Description: | Fixed-to-floating rate notes
|
| Maturity: | July 22, 2022
|
| Coupon: | 2.232%; converts to floating rate of Libor plus 44 bps after initial fixed-rate period
|
| Spread: | Treasuries plus 48 bps
|
| Call feature: | Non-callable two years
|
| Price guidance: | Treasuries plus 60 bps area
|
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