By William Gullotti
Buffalo, N.Y., Feb. 2 – PNC Financial Services Group Inc. priced $1.5 billion of 6.25% series W fixed-rate reset non-cumulative perpetual preferred stock (Baa2/BBB-/BBB) on Thursday, according to a 424B5 filing and an FWP filing with the Securities and Exchange Commission.
The preferreds will be issued as depositary shares representing a 1/100th interest.
The initial dividend will be fixed. It will reset starting in 2030 at the seven-year U.S. Treasury rate plus a 280.8 basis points margin. Dividends are payable quarterly in arrears.
Starting on the reset date, the preferreds can be redeemed on any dividend payment date. The preferreds can also be redeemed following a regulatory capital event.
BofA Securities, Inc., Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC and PNC Capital Markets LLC are the joint bookrunners for the offering.
Proceeds will be used for general corporate purposes, which may include the partial or full redemption of PNC’s outstanding series O preferred stock, 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 financial services company.
| Issuer: | PNC Financial Services Group Inc.
|
| Amount: | $1.5 billion
|
| Issue: | Fixed-rate reset non-cumulative perpetual preferred stock, series W
|
| Maturity: | Perpetual
|
| Bookrunners: | BofA Securities, Inc., Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC and PNC Capital Markets LLC
|
| Co-managers: | Samuel A. Ramirez & Co., Inc. and Siebert Williams Shank & Co., LLC
|
| Trustee: | Bank of New York Mellon
|
| Counsel to underwriters: | Cravath, Swaine & Moore LLP
|
| Dividend: | 6.25% initial rate, resets at seven-year intervals starting on March 15, 2030 at Treasuries plus 280.8 bps
|
| Price: | Par of $1,000
|
| Yield: | 6.25%
|
| Call features: | Starting on first dividend reset date and on any dividend payment date thereafter
|
| Trade date: | Feb. 2
|
| Settlement date: | Feb. 7
|
| Ratings: | Moody’s: Baa2
|
| S&P: BBB-
|
| Fitch: BBB
|
| Distribution: | SEC registered
|
| Cusip: | 693475BP9
|
|
|
© 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.
