By Wendy Van Sickle
Columbus, Ohio, Oct. 25 – PNC Financial Services Group, Inc. sold $2.5 billion of fixed-to-floating rate notes (A3/A-/A) in two parts on Tuesday, according to an FWP filing with the Securities and Exchange Commission.
A $1 billion tranche of three-year notes priced at par with an initial 5.671% interest rate. The fixed-rate period will end Oct. 28, 2024.
The notes priced with a Treasuries plus 120 basis points spread.
For the final year of the notes, the interest rate will be based on SOFR plus 109 bps.
And, a $1.5 billion tranche of 11-year notes priced at par with an initial 6.037% interest rate. The fixed-rate period will end Oct. 28, 2032.
The notes priced with a Treasuries plus 195 bps spread.
For the final year of the notes, the interest rate will be based on SOFR plus 214 bps.
Interest on each series 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., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC and PNC Capital Markets LLC are the joint bookrunners.
Proceeds will be used for general corporate purposes, including debt repayment, repurchases, redemptions and investments in or advances to existing or future subsidiaries.
PNC Financial Services is a Pittsburgh-based financial services holding company.
| Issuer: | PNC Financial Services Group, Inc.
|
| Amount: | $2.5 billion
|
| Issue: | Fixed-to-floating rate notes
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| Bookrunners: | Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC and PNC Capital Markets LLC
|
| Co-managers: | Academy Securities, Inc. and Siebert Williams Shank & Co., LLC
|
| Counsel to issuer: | In-house and McGuire Woods LLP
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| Counsel to underwriters: | Cravath, Swaine & Moore LLP
|
| Trade date: | Oct. 25
|
| Settlement date: | Oct. 28
|
| Ratings: | Moody’s: A3
|
| S&P: A-
|
| Fitch: A
|
| Distribution: | SEC registered
|
|
|
| 2025 notes
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| Amount: | $1 billion
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| Maturity: | Oct. 28, 2025
|
| Coupon: | 5.671% initial rate; converts to SOFR plus 109 bps on Oct. 28, 2024
|
| Price: | Par
|
| Yield: | 5.671%
|
| Spread: | Treasuries plus 120 bps
|
| Call features: | Oct. 28, 2024 and from 90 days prior to maturity at par
|
| Cusip: | 693475BH7
|
|
|
| 2033 notes
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| Amount: | $1.5 billion
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| Maturity: | Oct. 28, 2033
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| Coupon: | 6.037% initial rate; converts to SOFR plus 214 bps on Oct. 28, 2032
|
| Price: | Par
|
| Yield: | 6.037%
|
| Spread: | Treasuries plus 195 bps
|
| Call features: | Oct. 28, 2032 and from 90 days prior to maturity at par
|
| Cusip: | 693475BJ3
|
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