By Wendy Van Sickle and Cristal Cody
Columbus, Ohio, Nov. 29 – PNC Financial Services Group, Inc. sold $1 billion of six-year fixed-to-floating rate senior notes (A3/A-/A) at par with an initial 5.354% interest rate on Tuesday, according to an FWP filing with the Securities and Exchange Commission.
The fixed-rate period will end Dec. 2, 2027. For the final year of the notes, the interest rate will be based on SOFR plus 109 basis points.
The notes priced with a Treasuries plus 143 bps spread versus talk from a market source in the Treasuries plus 165 bps area.
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 advances to existing or future subsidiaries, debt repayment, repurchases, redemptions of issued and outstanding securities of PNC and its subsidiaries including PNC common and preferred stock.
PNC Financial Services is a Pittsburgh-based financial services holding company.
| Issuer: | PNC Financial Services Group, Inc.
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| Amount: | $1 billion
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| Issue: | Fixed-to-floating rate notes
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| Maturity: | Dec. 2, 2028
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| Bookrunners: | J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC and PNC Capital Markets LLC
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| Co-managers: | Samuel A. Ramirez & Co., Inc. and Siebert Williams Shank & Co., LLC
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| Counsel to issuer: | In-house and McGuire Woods LLP
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| Counsel to underwriters: | Cravath, Swaine & Moore LLP
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| Coupon: | 5.354% initial rate; converts to SOFR plus 109 bps on Dec. 2, 2027
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| Price: | Par
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| Yield: | 5.354%
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| Spread: | Treasuries plus 143 bps
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| Call features: | Dec. 2, 2027 and from 30 days prior to maturity at par
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| Trade date: | Nov. 29
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| Settlement date: | Dec. 2
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| Ratings: | Moody’s: A3
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| S&P: A-
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| Fitch: A
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| Distribution: | SEC registered
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| Price talk: | Treasuries plus 165 bps area
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| Cusip: | 693475BK0
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