By Cristal Cody
Chicago, Sept. 8 – PNC Financial Services Group Inc. sold a $1.5 billion offering of 3.4% fixed-rate reset non-cumulative perpetual preferred stock, series T, (Baa2/BBB-/BBB) on Wednesday, according to an FWP filing with the Securities and Exchange Commission.
The $1,000 par series is being issued as depositary shares representing a 1/100th interest.
The initial dividend will be fixed. A market source noted it was in the market with talk in the 3.75% area.
The preferreds will reset starting on Sept. 15, 2026 at the five-year U.S. Treasury rate plus a 259.5 basis points margin.
Dividends are payable quarterly in arrears.
Starting in 2026, the preferreds can be redeemed on any dividend payment date. The preferreds also can be redeemed for a regulatory capital event.
Citigroup Global Markets Inc., BofA Securities, Inc., J.P. Morgan Securities LLC and PNC Capital Markets LLC are the bookrunners.
Proceeds will be used for general corporate purposes, which may include advances to subsidiaries to finance their activities, repayment of outstanding debt, and repurchases and redemptions of issued and outstanding securities of PNC and its subsidiaries, including PNC common stock and PNC preferred stock.
The issuer is a Pittsburgh-based financial services company.
| Issuer: | PNC Financial Services Group Inc.
|
| Issue: | Fixed-rate reset non-cumulative perpetual preferred stock, series T
|
| Amount: | $1.5 billion
|
| Maturity: | Perpetual
|
| Bookrunners: | Citigroup Global Markets Inc., BofA Securities, Inc., J.P. Morgan Securities LLC and PNC Capital Markets LLC
|
| Counsel to issuer: | In-house counsel, McGuireWoods LLP
|
| Counsel to underwriters: | Cravath, Swaine & Moore LLP
|
| Dividend: | 3.4% initial rate; resets to five-year Treasuries plus 259.5 bps starting Sept. 15, 2026; resets every five years
|
| Price: | Par of $1,000
|
| Call features: | On any quarterly dividend payment date starting Sept. 15, 2026
|
| Trade date: | Sept. 8
|
| Settlement date: | Sept. 13
|
| Ratings: | Moody’s: Baa2
|
| S&P: BBB-
|
| Fitch: BBB
|
| Distribution: | SEC registered
|
| Price talk: | 3.75% area dividend
|
| Cusip: | 693475BC8
|
|
|
© 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.
