By Wendy Van Sickle
Columbus, Ohio, June 1 – PNC Financial Services Group Inc. sold $850 million of fixed-rate/floating rate subordinated notes due 2033 (A3/BBB+/A-) at par with a spread of Treasuries plus 170 basis points on Wednesday, according to an FWP filed with the Securities and Exchange Commission.
The fixed-rate period will cover 10 years with the final year carrying a floating rate of SOFR plus 185 basis points.
The notes will have a par call when the rate first resets and then are freely callable in the 90 days before the notes mature.
PNC Capital Markets LLC, Barclays, Goldman Sachs & Co. LLC and Morgan Stanley & Co. LLC were the joint bookrunners.
Proceeds will be used for general corporate purposes, which may include investments in or advances to existing or future subsidiaries, repayment of outstanding debt, and repurchases and redemptions of issued and outstanding securities of PNC and its subsidiaries, including PNC common stock and other series of PNC preferred stock.
PNC is a Pittsburgh-based bank and holding company.
| Issuer: | PNC Financial Services Group Inc.
|
| Amount: | $850 million
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| Issue: | Fixed-rate/floating rate subordinated notes
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| Maturity: | June 6, 2033
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| Bookrunners: | PNC Capital Markets LLC, Barclays, Goldman Sachs & Co. LLC and Morgan Stanley & Co. LLC
|
| Co-managers: | Academy Securities, Inc. and Samuel A. Ramirez & Co., Inc.
|
| Trustee: | Bank of New York Mellon
|
| Counsel to issuer: | In-house
|
| Counsel to underwriters: | Cravath, Swaine & Moore LLP
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| Coupon: | 4.626% until June 6, 2032, then SOFR plus 185 bps
|
| Price: | Par
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| Yield: | 4.626%
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| Spread: | Treasuries plus 170 bps
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| Call: | Par call in whole on June 6, 2032 and in whole or in part starting 90 days before maturity
|
| Trade date: | June 1
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| Settlement date: | June 6
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| Ratings: | Moody's: A3
|
| S&P: BBB+
|
| Fitch: A-
|
| Distribution: | SEC registered
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| Cusip: | 693475BE4
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