By Cristal Cody
Chicago, April 20 – PNC Financial Services Group, Inc. sold $1 billion of fixed-to-floating rate notes due April 23, 2032 at par with an initial 2.307% interest rate (A3/A-/A), according to an FWP filing with the Securities and Exchange Commission.
The fixed-rate period will end in April 2031.
The notes priced with a Treasuries plus 75 basis points spread.
Talk had the notes coming in the Treasuries plus 95 bps area, according to a market source.
For the final year of the notes, the interest rate will be based on SOFR plus 97.926 bps.
Interest will be payable semiannually in the fixed-rate period and quarterly in the final year.
The notes will be redeemable on the date one year before maturity and again 90 days before maturity.
Citigroup Global Markets Inc., BofA Securities, Inc., Morgan Stanley & Co. LLC and PNC Capital Markets LLC are the underwriters.
Proceeds will be used for general corporate purposes, which may include advances to subsidiaries to finance activities, repayment of outstanding debt and repurchases of common stock.
PNC Financial Services is a Pittsburgh-based financial services holding company.
| Issuer: | PNC Financial Services Group, Inc.
|
| Issue: | Fixed-to-floating rate notes
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| Amount: | $1 billion
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| Maturity: | April 23, 2032
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| Bookrunners: | Citigroup Global Markets Inc., BofA Securities, Inc., Morgan Stanley & Co. LLC and PNC Capital Markets LLC
|
| Coupon: | 2.307% initial rate; converts to SOFR plus 97.926 bps on April 23, 2031
|
| Price: | Par
|
| Yield: | 2.307%
|
| Spread: | Treasuries plus 75 bps
|
| Call features: | April 23, 2031 and from 90 days prior to maturity at par
|
| Trade date: | April 20
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| Settlement date: | April 23
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| Ratings: | Moody’s: A3
|
| S&P: A-
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| Fitch: A
|
| Distribution: | SEC registered
|
| Price talk: | Treasuries plus 95 bps area
|
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