By Stephanie N. Rotondo
Phoenix, May 2 - PNC Financial Services Group Inc. priced $500 million 4.85% $1,000-par series R fixed-to-floating rate noncumulative perpetual preferred stock, according to an FWP filed with the Securities and Exchange Commission on Thursday.
The preferreds (expected ratings: Baa3/BBB/BBB-) will be sold as depositary shares representing a 1/100th interest.
J.P. Morgan Securities LLC, Citigroup Global Markets Inc. and PNC Capital Markets LLC are the joint bookrunning managers.
When declared, dividends will be payable semiannually on June 1 and Dec. 1 while the rate is fixed. Beginning June 1, 2023, the rate will begin to float and dividends will become payable quarterly on the first of March, June, September and December.
The floating rate will be equal to Libor plus 304 basis points.
The preferreds become redeemable, in whole or in part, on or after June 1, 2023 at par plus accrued dividends. PNC can also call the securities in whole within 90 days of a regulatory capital treatment event.
Proceeds will be used for general corporate purposes, which may include advances to subsidiaries, paying down debt and repurchases or redemptions of outstanding securities.
PNC Financial is a Pittsburgh-based financial services company.
| Issuer: | PNC Financial Services Group Inc.
|
| Securities: | Series R fixed-to-floating rate noncumulative preferred stock
|
| Amount: | $500 million, or 500,000 shares
|
| Maturity: | Perpetual
|
| Bookrunners: | J.P. Morgan Securities LLC, Citigroup Global Markets Inc., PNC Capital Markets LLC
|
| Lead managers: | Goldman Sachs & Co., Morgan Stanley & Co. LLC
|
| Co-manager: | Sandler O'Neill & Partners LP
|
| Dividend: | 4.85%; beginning June 1, 2023, floating at Libor plus 304 bps
|
| Price: | Par of $1,000
|
| Yield: | 4.85%
|
| Talk: | Around 4.9%
|
| Call options: | On or after June 1, 2023 or within 90 days of a regulatory capital treatment event at par plus accrued dividends
|
| Pricing date: | May 2
|
| Settlement date: | May 7
|
| Expected ratings: | Moody's: Baa3
|
| Standard & Poor's: BBB
|
| Fitch: BBB-
|
| Cusip: | 693475AM7
|
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