By Stephanie N. Rotondo
Portland, Ore., April 20 - PNC Financial Services Group, Inc. gave further details on its $1.5 billion offering of 6.125% fixed-to-floating-rate series P noncumulative perpetual preferred stock in an FWP filed with the Securities and Exchange Commission on Friday.
The deal priced late Thursday. There is a $75 million over-allotment option.
Price talk was originally 6.25% to 6.375%, according to a trader.
After May 1, 2022, the dividend rate will be Libor plus 406.75 basis points.
When declared, dividends will be payable on the 1st 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.
Morgan Stanley & Co. LLC, Citigroup Global Markets Inc., J.P. Morgan Securities LLC and PNC Capital Markets LLC are the joint bookrunning managers.
The preferreds have a liquidation preference of $100,000 each. They will be issued as $25 depositary shares each representing a 1/4,000th interest in a preferred.
PNC will apply to list the shares on the New York Stock Exchange under the ticker symbol "PNCPP."
Settlement is expected Tuesday.
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: | PNC Financial Services Group, Inc.
|
| Securities: | Fixed-to-floating-rate series P noncumulative perpetual preferred stock
|
| Amount: | $1.5 billion
|
| Greenshoe: | $75 million
|
| Dividend: | Fixed at 6.125% until May 1, 2022, then set annually at Libor plus 406.75 bps
|
| Price: | $25
|
| Call option: | On or after May 1, 2022 or in the event of a regulatory capital treatment event
|
| Bookrunners: | Morgan Stanley & Co. LLC, Citigroup Global Markets Inc., J.P. Morgan Securities LLC and PNC Capital Markets LLC
|
| Pricing date: | April 19
|
| Settlement date: | April 24
|
| Expected listing: | NYSE: PNCPP
|
| Cusip: | 693475857
|
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