PNC greenshoe exercised, lifts 5.375% preferreds to $480 million

By Toni Weeks

San Diego, Oct. 9 - Underwriters for PNC Financial Services Group Inc.'s sale of 5.375% series Q noncumulative perpetual preferred stock exercised their over-allotment option for an additional 1.2 million shares, lifting the deal size to $480 million, according to an 8-K filed with the Securities and Exchange Commission on Friday.

As previously reported, the company priced $450 million of preferreds with a $67.5 million greenshoe on Sept. 14.

The securities will be issued as $25 depositary shares each representing a 1/4,000th interest in a preferred.

The company can redeem the preferreds in whole or in part on or after Dec. 1, 2017 or in whole within 90 days of a regulatory capital treatment event.

The joint bookrunners are Morgan Stanley & Co. LLC, Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Bank of America Merrill Lynch and PNC Capital Markets LLC. The co-managers are Barclays and Sandler O'Neill + Partners LP.

PNC will apply to list the securities on the New York Stock Exchange under the ticker symbol "PNCPQ."

Proceeds will be used for general corporate purposes, which may include advances to subsidiaries to finance activities, repaying debt and redemptions or repurchases of outstanding securities.

PNC is a Pittsburgh-based financial services firm.

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