By Stephanie N. Rotondo
Phoenix, Sept. 14 - PNC Financial Services Group Inc. priced $450 million of 5.375% series Q noncumulative perpetual preferred stock (expected Baa3/BBB/BBB-), according to an FWP filed with the Securities and Exchange Commission on Friday.
The deal came at the tight end of talk and was upsized from $250 million.
There is a $67.5 million over-allotment option.
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.
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.
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.
| Issuer: | PNC Financial Services Group Inc.
|
| Securities: | Series Q noncumulative preferred stock
|
| Amount: | $450 million, or 18 million depositary shares
|
| Greenshoe: | $67.5 million, or 2.7 million depositary shares
|
| Maturity: | Perpetual
|
| Bookrunners: | Morgan Stanley & Co. LLC, Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Bank of America Merrill Lynch and PNC Capital Markets LLC
|
| Co-managers: | Barclays and Sandler O'Neill + Partners LP
|
| Dividend: | 5.375%, payable quarterly beginning Dec. 1
|
| Liquidation preference: | $100,000 per preferred
|
| Price: | Par of $25 per depositary share
|
| Yield: | 5.375%
|
| Call option | On or after Dec. 1, 2017 or within 90 days of a regulatory capital treatment event
|
| Pricing date: | Sept. 14
|
| Settlement date: | Sept. 21
|
| Expected ratings: | Moody's: Baa3
|
| Standard & Poor's: BBB
|
| Fitch: BBB-
|
| Expected listing: | NYSE: PNCPQ
|
| Cusip: | 693475832
|
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