By Wendy Van Sickle and Cristal Cody
Columbus, Ohio, Oct. 17 – PNC Financial Services Group, Inc. priced $3.5 billion of fixed-to-floating rate senior notes (A3/A-/A) in two parts on Tuesday, according to an FWP filing with the Securities and Exchange Commission.
The company priced $1.25 billion of notes due in 2027 that start with a 6.615% coupon that converts in the final year to SOFR plus 173 basis points.
The notes priced at par, or at Treasuries plus 160 bps. Initial talk put the notes in the 180 bps area.
The second tranche, the larger of the two, priced as $2.25 billion of notes due 2034 with a starting 6.875% fixed rate that converts to a floating rate for the final year at SOFR plus 228.4 bps.
The notes priced at par, or a spread of 203 bps above the related benchmark Treasury. Talk was in the Treasuries plus 225 bps area.
Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC 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: | Citigroup Global Markets Inc., Goldman Sachs & Co. 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 issuer: | In-house counsel and McGuire Woods LLP
|
| Counsel to underwriters: | Cravath, Swaine & Moore LLP
|
| Trade date: | Oct. 17
|
| Settlement date: | Oct. 20
|
| Ratings: | Moody’s: A3
|
| S&P: A-
|
| Fitch: A
|
| Distribution: | SEC registered
|
|
|
| 2027 notes
|
| Amount: | $1.25 billion
|
| Maturity: | Oct. 20, 2027
|
| Coupon: | 6.615% initial rate; resets to SOFR plus 173 bps starting Oct. 20, 2026
|
| Price: | Par
|
| Yield: | 6.615%
|
| Spread: | Treasuries plus 160 bps
|
| Call features: | At par on Oct. 20, 2026; 30-day par call
|
| Price talk: | Treasuries plus 180 bps area
|
| Cusip: | 693475BT1
|
|
|
| 2034 notes
|
| Amount: | $2.25 billion
|
| Maturity: | Oct. 20, 2034
|
| Coupon: | 6.875% initial rate; resets to SOFR plus 228.4 bps starting Oct. 20, 2033
|
| Price: | Par
|
| Yield: | 6.875%
|
| Spread: | Treasuries plus 203 bps
|
| Call features: | At par on Oct. 20, 2033; 90-day par call
|
| Price talk: | Treasuries plus 225 bps area
|
| Cusip: | 693475BU8
|
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