By Stephanie N. Rotondo
Portland, Ore., April 19 - The PNC Financial Services Group Inc. sold $1.5 billion of 6.125% fixed-to-floating rate series P noncumulative perpetual preferred stock on Thursday, according to a market source.
Price talk was originally 6.25% to 6.375%, according to a trader. After May 1, 2022, the rate will be based on three-month Libor plus a spread.
The preferreds will be issued as depositary shares representing a 1/4,000th interest.
When declared, dividends will be payable on the 1st day of February, May, August and November.
The company can redeem the preferreds on or after May 1, 2022 or within 90 days of a regulatory capital treatment event.
PNC will apply to list the shares on the New York Stock Exchange under the ticker symbol "PNCPP."
Morgan Stanley & Co. LLC, Citigroup Global Markets Inc., J.P. Morgan Securities LLC and PNC Capital Markets LLC are the joint bookrunners.
Proceeds will be used for general corporate purposes, including the repurchase and redemption of outstanding PNC and subsidiary securities, including trust preferreds.
PNC is based in Pittsburgh.
| Issuer: | The PNC Financial Services Group Inc.
|
| Securities: | Fixed-to-floating rate series P noncumulative perpetual preferred stock
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| Amount: | $1.5 billion
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| Maturity: | Perpetual
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| Bookrunners: | Morgan Stanley & Co. LLC, Citigroup Global Markets Inc., J.P. Morgan Securities LLC, PNC Capital Markets LLC
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| Dividend: | Fixed at 6.125% until May 1, 2022, then set annually at three-month Libor plus a spread
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| Redemptions: | On or after May 1, 2022, or in the event of a regulatory capital treatment event
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| Pricing date: | April 19
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| Stock symbol: | NYSE: PNCPP
|
| Price talk: | 6.25% to 6.375%
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