By Stephanie N. Rotondo
Seattle, Oct. 27 – PNC Financial Services Group Inc. priced $525 million of 5% $1,000-par series S fixed-to-floating rate noncumulative perpetual preferred stock (expected ratings: Baa2/BBB-/BBB-), the company said in an FWP filed with the Securities and Exchange Commission on Thursday.
Initial price talk was 5.125% but was later revised to 5%. The deal grew from $500 million.
The preferreds will be issued as depositary shares representing a 1/100th interest.
J.P. Morgan Securities LLC, Citigroup Global Markets Inc., Morgan Stanley & Co. LLC and PNC Capital Markets LLC are the joint bookrunning managers.
While fixed, dividends will be paid semiannually. Once floating – at Libor plus 330 basis points, beginning Nov. 1, 2026 – the dividend will be paid on a quarterly basis.
The preferreds are redeemable on or after Nov. 1, 2026 or within 90 days of a regulatory capital treatment event at par plus accrued dividends.
The new securities will not be listed.
The Pittsburgh-based financial services company will use the proceeds for general corporate purposes, which may include advances to subsidiaries, the repayment of debt and repurchases and/or redemptions of outstanding securities.
| Issuer: | PNC Financial Services Group Inc.
|
| Securities: | Series S fixed-to-floating rate noncumulative preferred stock
|
| Amount: | $525 million
|
| Maturity: | Perpetual
|
| Bookrunners: | J.P. Morgan Securities LLC, Citigroup Global Markets Inc., Morgan Stanley & Co. LLC, PNC Capital Markets LLC
|
| Dividend: | Fixed at 5% until Nov. 1, 2026, then floating at Libor plus 330 bps
|
| Price: | Par of $1,000
|
| Talk: | Initially 5.125%, then tightened to 5%
|
| Call options: | On or after Nov. 1, 2026 or within 90 days of a regulatory capital treatment event at par plus accrued dividends
|
| Pricing date: | Oct. 27
|
| Settlement date: | Nov. 1
|
| Expected ratings: | Moody’s: Baa2
|
| S&P: BBB-
|
| Fitch: BBB-
|
| Cusip: | 693475AQ8
|
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