Chicago, June 7 – PNC Financial Services Group, Inc. priced $3.5 billion of fixed-to-floating rate senior notes in two parts on Wednesday, according to an FWP filing with the Securities and Exchange Commission.
The company priced $1 billion of notes due in 2026 that start with a 5.812% coupon that converts in the final year to SOFR plus 132.2 basis points.
The notes priced at par, or at Treasuries plus 127 bps.
The second tranche, the larger of the two, priced as $2.5 billion of notes due 2029 with a starting 5.582% fixed rate that converts to a floating rate for the final year at SOFR plus 184.1 bps.
The notes priced at par, or a spread of 167 bps above the related benchmark Treasury.
Morgan Stanley & Co. LLC, Citigroup Global Markets Inc. and PNC Capital Markets LLC are the joint bookrunning managers.
Proceeds will be used for general corporate purposes, including debt repayment, repurchases, redemptions and investments in or advances to existing or future subsidiaries.
PNC is a Pittsburgh-based financial services company.
| Issuer: | PNC Financial Services Group, Inc.
|
| Amount: | $3.5 billion
|
| Issue: | Fixed-to-floating rate senior notes
|
| Bookrunners: | Morgan Stanley & Co. LLC, Citigroup Global Markets Inc. and PNC Capital Markets LLC
|
| Co-managers: | Academy Securities, Inc. and Samuel A. Ramirez & Co., Inc.
|
| Trustee: | Bank of New York Mellon
|
| Counsel to issuer: | In-house counsel and McGuire Woods LLP
|
| Counsel to underwriters: | Cravath, Swaine & Moore LLP
|
| Trade date: | June 7
|
| Settlement date: | June 12
|
| Ratings: | Moody’s: A3
|
| S&P: A-
|
| Fitch: A
|
| Distribution: | SEC registered
|
|
|
| 2026 notes
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| Amount: | $1 billion
|
| Maturity: | June 12, 2026
|
| Coupon: | 5.812% initial rate; resets to SOFR plus 132.2 bps starting June 12, 2025
|
| Price: | Par
|
| Yield: | 5.812%
|
| Spread: | Treasuries plus 127 bps
|
| Call features: | At par on June 12, 2025; 30-day par call
|
| Cusip: | 693475BQ7
|
|
|
| 2029 notes
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| Amount: | $2.5 billion
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| Maturity: | June 12, 2029
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| Coupon: | 5.582% initial rate; resets to SOFR plus 184.1 bps starting June 12, 2028
|
| Price: | Par
|
| Yield: | 5.582%
|
| Spread: | Treasuries plus 167 bps
|
| Call features: | At par on June 12, 2028; 30-day par call
|
| Cusip: | 693475BR5
|
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