By Wendy Van Sickle
Columbus, Ohio, Jan. 17 – PNC Financial Services Group, Inc. priced $2.5 billion of fixed-to-floating rate senior notes (A3/A-/A) in two parts on Wednesday, according to an FWP filing with the Securities and Exchange Commission.
The company priced $1 billion of notes due 2028 that start with a 5.3% coupon and convert in the final year to SOFR plus 134.2 basis points.
The notes priced at par, or at Treasuries plus 118 bps.
The second tranche, the larger of the two, priced as $1.5 billion of notes due 2035 with a starting 5.676% fixed rate that converts to a floating rate for the final year at SOFR plus 190.2 bps.
The notes priced at par, or a spread of 158 bps above the related benchmark Treasury.
PNC Capital Markets LLC, Barclays, Goldman Sachs & Co. LLC and Morgan Stanley & Co. 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: | $2.5 billion
|
| Issue: | Fixed-to-floating rate senior notes
|
| Bookrunners: | PNC Capital Markets LLC, Barclays, Goldman Sachs & Co. LLC and Morgan Stanley & Co. LLC
|
| Co-managers: | Academy Securities, Inc. and Samuel A. Ramirez & Co., Inc.
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| Trustee: | Bank of New York Mellon
|
| Counsel to issuer: | In-house counsel and McGuire Woods LLP
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| Counsel to underwriters: | Cravath, Swaine & Moore LLP
|
| Trade date: | Jan. 17
|
| Settlement date: | Jan. 22
|
| Ratings: | Moody’s: A3
|
| S&P: A-
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| Fitch: A
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| Distribution: | SEC registered
|
|
|
| 2028 notes
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| Amount: | $1 billion
|
| Maturity: | Jan. 21, 2028
|
| Coupon: | 5.3% initial rate; resets to SOFR plus 134.2 bps starting Jan. 20, 2026
|
| Price: | Par
|
| Yield: | 5.3%
|
| Spread: | Treasuries plus 118 bps
|
| Call features: | At par on Jan. 21, 2027; 30-day par call
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| Cusip: | 693475BV6
|
|
|
| 2035 notes
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| Amount: | $1.5 billion
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| Maturity: | Jan. 22, 2035
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| Coupon: | 5.676% initial rate; resets to SOFR plus 190.2 bps starting Jan. 20, 2033
|
| Price: | Par
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| Yield: | 5.676%
|
| Spread: | Treasuries plus 158 bps
|
| Call features: | At par on Jan. 22, 2034; 90-day par call
|
| Cusip: | 693475BW4
|
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