PNC Financial to sell $1,000-par fixed-to-floating rate noncumulative perpetual preferreds

By Stephanie N. Rotondo

Phoenix, May 2 - PNC Financial Services Group Inc. will price an offering of $1,000-par series R fixed-to-floating rate noncumulative perpetual preferred stock, according to a prospectus filed with the Securities and Exchange Commission on Thursday.

A trader said the deal is expected to be at least $500 million.

The preferreds 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 be come payable quarterly on the first of March, June, September and December.

The floating rate will be equal to Libor plus a spread.

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.

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