By Andrea Heisinger
New York, June 4 - PNC Funding Corp. priced $1 billion senior notes (A3/A/A+) in two tranches Thursday without the backing of the Federal Deposit Insurance Corp., according to an informed source and an FWP filing with the Securities and Exchange Commission.
The $400 million of 5.4% five-year notes priced at 99.84 to yield 5.437%, or 290 basis points over Treasuries.
A $600 million tranche of 6.7% 10-year notes priced at 99.791 to yield 6.729%, or 305 bps over Treasuries.
The notes are non-callable.
Bookrunners were Goldman Sachs & Co. and J.P. Morgan Securities Inc. PNC Capital Markets was co-manager.
Proceeds will be used for general corporate purposes.
The deal is guaranteed by parent company PNC Financial Services Group Inc.
The financial services company is based in Pittsburgh.
| Issuer: | PNC Funding Corp.
|
| Guarantor: | PNC Financial Services Group Inc.
|
| Issue: | Senior notes
|
| Total amount: | $1 billion
|
| Bookrunners: | Goldman Sachs & Co., J.P. Morgan Securities Inc.
|
| Co-manager: | PNC Capital Markets
|
| Trade date: | June 4
|
| Settlement date: | June 9
|
| Ratings: | Moody's: A3
|
| Standard & Poor's: A
|
| Fitch: A+
|
|
|
| Five-year notes
|
| Amount: | $400 million
|
| Maturity: | June 10, 2014
|
| Coupon: | 5.4%
|
| Price: | 99.84
|
| Yield: | 5.437%
|
| Spread: | Treasuries plus 290 bps
|
| Call: | Non-callable
|
|
|
| 10-year notes
|
| Amount: | $600 million
|
| Maturity: | June 10, 2019
|
| Coupon: | 6.7%
|
| Price: | 99.791
|
| Yield: | 6.729%
|
| Spread: | Treasuries plus 305 bps
|
| Call: | Non-callable
|
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